Bitcoin value slumps by a fifth following mammoth exchange theft
The valuation of Bitcoin’s has collapsed by 20 per cent following a major hack targeting Bitfinex, the cryptocurrency exchange, which saw $70m worth of Bitcoins stolen.
All trading was immediately halted and the platform taken offline when the security breach came to light but not before a reported 120,000 Bitcoins had been fleeced from users. If correct that figure would translate to around $77m at prices prior to the breach.
In a statement posted to their website Bitfinex said: “We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.”
This week Bitcoin had been trading at around $650 per coin but that valuation has since nosedived to around $540 as investors fret about the security of their virtual hoards.
It is unclear at this stage how the exchange’s security was penetrated but law enforcement officials have been notified pending initial investigations.