Bitfinex Security Breach *Update*
UPDATE 8-10-2016 8:33 PST:
UPDATE 8-5-2016 8:49 PST:
Bitfinex told their users the company plans to “socialize” the loss among the balances of those lost as well as those unaffected by the hack.
“We are still working out the details so nothing is set in stone, however we are leaning towards a socialized loss scenario among bitcoin balances and active loans to BTCUSD positions,” Bitfinex states.
The Hong-Kong-based exchange also notified users of phishing emails. The address adds an extra “i” and appears as @ibitfinex.com.
“We like to stress this is not a message sent out by Bitfinex and we advise anyone that has received this email or any similar email to delete it immediately.
Do not open the attachments and if you have opened the attachments do a full virus scan of your computer.”
Bitfinex will continue to provide updates to their users as they happen.
UPDATE 8-2-2016 16:59 PST:
Bitfinex has confirmed 119,756 btc was stolen. Zane Tackett, the Director of Community & Product Development for Bitfinex, added the exchange did not use cold storage since their customers used BitGo for their wallets. This would be the second largest security breach on a virtual currency exchange since Mt. Gox.
The virtual currency exchange, Bitfinex, has become the victim of a security breach.
In a statement, Bitfinex announced a halt on all trading as well as deposits and withdrawals of all coins. The exchange noted only bitcoin wallets were affected. All other coins and wallets were untouched. At the time of writing, the Bitfinex site is down while it works with law enforcement during the investigation. They have set up a site for users to follow the progress.
Read the full statement below:
Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.
We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.
The theft is being reported to—and we are co-operating with—law enforcement.
As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.
We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. 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.