120,000 Bitcoin units stolen in Hong Kong hack

Security / Tech
Hong Kong

Bitfinex does not believe the hack was internal but nothing is being ruled out at this point.

Reuters is reporting that $72 million dollars worth of Bitcoin was stolen in a hack of exchange platform Bitfinex in Hong Kong. This is the second such hack of a Bitcoin exchange and it is making waves in the Bitcoin community. In a statement to Reuters Bitfinex says they haven’t decided how to deal with the losses their customers have taken due to the hack. Bitfinex also said that authorities have been notified and the company is in process of trying to track the stolen Bitcoin online. Bitfinex does not believe the hack was internal but nothing is being ruled out at this point.

“Our investigation has found no evidence of a breach to any BitGo servers,” BitGo said in a Tweet.

“With users’ funds secured using multi-signature technology in partnership with BitGo, a lot more is at stake for the backbone of the bitcoin industry, with its stalwarts and prided tech under fire,” said Charles Hayter, chief executive and founder of digital currency website CryptoCompare.

Bitcoin prices fell on the news of the Hong Kong hack but rebounded slightly this morning. Bitcoin has mixed reviews as a viable currency with some believing it is the future of currency and others dismissing it altogether. Right now the fact is, those 120,000 Bitcoin units translate into very real dollars valued at $72 million and Bitfinex is going to have to figure out how to fix the situation for its customers. This second hack should also shine a light on strengthening security for such Bitcoin exchanges if Bitcoin users want this to be a sustainable currency.

What do you think of Bitcoin? The future or just an experiment? Do you use Bitcoin? Did the Hong Kong hack on Bitfinex impact you? Let us know your thoughts and comments below or on Twitter, Facebook and Google+.

  Source: NBC News
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