Hackers steal Bitcoins from Bitfinex in Hong Kong

11 January, 2017 | By Aapt Dubey

Some hackers reportedly looted $65 million virtual values in Bitcoins. The virtual currency hijack corresponds to a major Hong Kong-based exchange platform, Bitfinex.

Bitfinex with immediate action suspended the transactions on the platform as it acknowledged the breach. Hackers took away about 120,000 Bitcoins from a major Hong Kong-based exchange platform Bitfinex. These Bitcoins had the value of about $65 million at the time of suspension.

The company issued its statement on its website. It says that it discovered a breach that compelled it to put on halt all its tradings. It also had to suspend all the digital token deposits and withdrawals from the platform.

The company said that the matter is under strict investigation. The company will consider the options to fill up customer losses later.

As Bloomberg reports, the hackers took away 119,576 Bitcoins. These Bitcoins valued about $65 million on the platform at the time.

Following the theft, the Bitcoin prices plunged by 20 percent. The value now stands at $514 per Bitcoin from the previous value of $576 per Bitcoin. The costs were even higher in July.

Fred Eshram, the co-founder of cryptocurrency wallet and trading platform Coinbase finds it a high-profile breach. Bitfinex has been resilient to such events in the past. But, Eshram feels that this is significant for a large exchange like Bitfinex.

It is the latest break into the digital currencies. Before this, an Ether trading experimental platform suffered a theft of more than 50 million. Ether is another unit as Bitcoins are. The New York Times reported the above case in June.

The biggest issue of this type happened in 2014. Tokyo-based Mt Gox was the largest exchange platform of the time. The firm went bankrupt when some hundreds of million dollars evaporated from the platform. The digital vaults of the company lost 850,000 coins valued about $480 million then.

Such incidents can scare the investors exposing the fragility of the industry. It also marks a bad tattoo on the reputation of the virtual currency.

Wide awake with the mishap, the Japanese lawmakers passed a bill to regulate the virtual currency exchange by the Financial Services Agency of the country.

Bitcoins were introduced in 2009 as a software bit in Japanese name Santoshi Nakamoto. These chains of interactions among the networks of computers around the globe create them. Craig Wright, an Australian entrepreneur, once proclaimed to be the creator of the Bitcoins. But the claim is doubtful.

Other digital currencies also evolved following the path of Bitcoin. But the Bitcoin earned the fame that nothing else could. Bitcoins even touched the value of $1200 in 2013 but never regained that peak again. The values rise and fall without a fixed frequency.

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