Bitfinex hack: Part 2/2 of the story

It was afternoon on the 2nd day of August that one of the largest Bitcoin exchange was hacked. As reported by the exchange itself on their status page, they have experienced a security breach and some news said that there were 120,000 BTC that has been stolen from them. That is equivalent to more than 60 million USD in total. During that time until today, all deposits and withdrawals were halted as they are still investigating the reported theft, co-operating with some law enforcement.

Bitfinex update

Four days after the incident, Bitfinex released an update that they are already in the process of restoring their web site but with limited functionality. These include only logging in and checking the status of the users’ accounts. Deposits, withdrawals, and trading are still on a halt to give way to the relaunch and the accounting of all the lost assets of the affected user accounts.


Bitfinex Hack Part 2 of the Story Halt

On August 8, the exchange team has announced that they have already finalized the computation of all the losses and that they are in the process of planning some strategies to compensate all of the losses of the affected customers. They have been discussing with a number of possible investors about several strategic options on how to fully compensate the loss. They intend to be online after 24 to 48 hours on that day but will still only allow a few functionalities on their website making sure that all remaining assets are secure and away from any unsafe exposure.

Current situation

Today, the website is already online but on a read-only basis as they are still on the progress of enabling full functionality. There were a number of changes that users should be aware of using the website. Firstly, users should change their password and their 2FA. Clef has been disabled to all accounts, as they did reset their security keys with the 2FA provider, requiring users to enroll again. Also, the creation of API keys is also temporarily disabled but will be enabled back within the next two days.

Bitgo’s side on Bitfinex Security Breach

Bitfinex, as we know, uses Bitgo software as a part of their security solutions. So, what is Bitgo’s say or what were their actions to help Bitfinex on the security breach?

Bitfinex Hack Part 2 of the Story Security

According to their blog post, they have been working hard with Bitfinex team from the day the breach happened up to this date, in investigating the theft. While both are doing their best on the case, they can not deny that a large amount of Bitcoin was already lost. So Bitgo said, that their main concern right now is to protect the remaining assets that Bitfinex and its customers hold. Bitgo also added that their systems have never been affected nor compromised by the attack and so everything with them is working correctly. They also mentioned that there is no need for their customers to make any direct change since Bitfinex has a whole way different configuration than the others. Nevertheless, they advised that this is a waking call for all of their other customers and all other Bitoin exchanges to review their security processes and risks to prevent this unlikely event.

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