Bitfinex; a Hong Kong-based currency exchange has announced that the price of Bitcoin has dropped by over 10%. The fall comes after the firm experienced a major hack on their system. The hack seems to have hugely affected the exchange firm and there is reported to be losses worth millions of dollars.
Bitfinex told Reuters that the breach cost them Bitcoin worth $65 million. The report says that over 120,000 Bitcoin were stolen from the exchange platform. According to BBC all transactions on the virtual exchange have been suspended pending investigations into the breach.
Bitfinex let all who may have suffered due to the attack know that they were working hard to resolve the issue. It reported on its website that it was “deeply concerned about the issue and we are committing every resource to try to resolve it”.
Bitfinex undergoes first major loss
The theft is being treated as one of the biggest theft in Bitcoin’s history. Many in the virtual currency community are allegedly treating it as a “major deal.”
“Unfortunately, we continue to have vulnerabilities in the form of exchanges and wallets,” former Singapore-based bitcoin broker David Moskowitz told the BBC.
“The vulnerabilities almost always occur on the exchange or wallet side and this is an area that continues to need improvement and more secure protocols, no different than when a bank gets robbed.”
It has been a challenge trying to secure bitcoin trading platforms. Hacking and thefts have always been seen as the biggest threats. In 2014 Mt Gox a trading exchange based in Tokyo declared bankruptcy when hundreds of millions of dollars disappeared or were stolen.
Bitfinex has suffered this huge setback but many are confident that the platform will stay strong. Mr Moskowitz for instance, told the BBC that in spite of the latest alleged theft, “the core protocol is extremely robust and has not been hacked”. He said that even though there is no alternative but to correct bitcoin pricing, he was confident that it is still the best alternative asset.