x

Bitfinex Hot Wallets Hacked, More Than 1,400 Bitcoin May Be Stolen

by

         Bitfinex Hot Wallets Hacked, More Than 1,400 Bitcoin May Be Stolen

Hong Kong-based bitcoin exchange Bitfinex announced around 5 a.m. EDT today the startup’s hot wallets were compromised and some bitcoin were stolen. The exchange also advised its users to immediately stop depositing bitcoin to old addresses in their Bitfinex account.

It is unclear how much has been lost in the hack, but according to a company statement, the hot wallets held only 0.05 percent of the exchange’s bitcoin holdings. Though still unconfirmed, RedditorgowithBTC followed a string of transactions on the blockchain to what he believes is Bitfinex’s hot wallet. If correct, it would put the amount of bitcoin lost in the hack just more than 1,400 or around 0.06 percent of the company’s total holdings.

Bitfinex said that any losses experienced by users would “be fully absorbed” by the exchange but did not give any specific timing as to when they would be reimbursed or how victims could notify the startup of their damages. The company currently is creating a new hot wallet and will update the public on the situation within the next several hours.

BitcoinTalk hacked as well

Yesterday, the popular Bitcoin forum went offline due to a social engineering attack, which led to website’s servers being compromised. Targeted at the forum’s ISP, NFOrce, the attacker tricked the ISP into handing over passwords, emails, and other security sensitive information.

The owner and operator of BitcoinTalk, who goes by the pseudonym Theymos, said the hacker got access to the website’s servers for 12 minutes, “so he probably wasn’t able to get a complete dump of the database.” He also advised users to consider that their email and passwords were compromised and act accordingly.

It is unclear whether the two incidents are related, and how Bitfinex was hacked is unknown as well.

We will update this developing story as we learn more.

Recommended

Op Ed: With Bitcoin, Anarchy Is the Point, Not the Problem

In a SXSW panel discussion, IBM’s Christopher Ferris asked bitcoiner Jimmy Song if he was arguing for anarchy over a regulated financial system . In this op ed, Kyle Torpey posits, "Yes! That’s the whole point!"

Kyle Torpey

Op Ed: Hanging Money Launderers Out to Dry: The Role of KYC/AML in Blockchain

In this op ed, CoolBitX CEO Michael Ou argues that "anonymity contributes to cryptocurrency’s notorious volatility and makes it that much less likely that digital currencies will become stable stores of value."

Michael Ou

Bitcoin Price Analysis: Slow Grind Could Lead to Short Squeeze

Last Friday, we discussed a macro resistance level bitcoin would likely test. The level was tested three times prior and immediately rejected. Now, for the fourth time, we find ourselves situated above the level as we wait to see if our support holds.

Bitcoin Schmitcoin

Bitcoin Price Analysis: Could Three Times Be the Charm for This Resistance Level?

Bitcoin remains in its tightly coiled range as the market continues its sideways trend for the third week in a row.

Bitcoin Schmitcoin