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Bitfinex stops Bitcoin trading after hackers attack

Wednesday 3 August 2016 09:24 CET | News

Bitfinex, a Hong Kong-based exchange, has stopped trading, withdrawals and deposits after discovering a security breach. 

Hackers stole about USD 65 million of Bitcoin from Bitfinex and as a result the digital currency is down almost 20 %. Bitcoin dropped 5.5 % against the dollar in Tokyo. The exchange acknowledged some Bitcoins were stolen from its users and said it was still investigating details and cooperating with law enforcement to solve the problem, according to Bloomberg.

The hackers took 119,756 Bitcoin, or about USD 65 million at current prices. While trading was stopped in all digital currencies, including Ethereum, the exchange said losses were limited only to Bitcoin. It also said US dollar deposits were not impacted.

In 2015, Bitfinex announced a partnership with BitGo, Palo Alto-based, which uses multiple-signature security to store user deposits online, allowing for faster confirmation and withdrawals. Exchanges including OKCoin tend to store the majority of deposits offline, while keeping a small percentage online and available for immediate withdrawal. 


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Keywords: Bitfinex, Bitcoin, cryptocurrency, Ethereum, digital currency, Hong Kong, exchange
Categories: DeFi & Crypto & Web3
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DeFi & Crypto & Web3






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