| submitted by /u/Liongrass
Prominent Hong Kong-based bitcoin exchange Bitfinex has announced that it has halted all trading on its platform while investigating a breach that has seen customers lose their funds due to theft. Bitcoin exchange Bitfinex has halted all trading on its platform, including all deposits and withdrawals. An announcement on its website has confirmed that Bitfinex […]
The post Bitfinex Confirms Stolen Bitcoin, Suspends Trading; Price Crashes appeared first on CCN: Financial Bitcoin & Cryptocurrency News.
Update: The theft of 119,756 bitcoins has now been conclusively confirmed. Bitcoin’s price crashed today as bitfinex dramatically announced a “security breach” that led to the theft of an unconfirmed number of bitcoins. The biggest USD bitcoin exchange further announced a shutting down of its website and trading in ominous signs reminiscent of MT Gox. […]
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.
What Bitfinex did today, as leader of the USD market by volume, is bordering on criminal. They:
- Halted trading at a price point of 715
- Shut down the site entirely, disallowing users to withdraw BTC
- Kept the site on lockdown for several hours while BTC was tanking
- Resumed trading when BTC was at a considerable lower price point across all other exchanges (~650 USD)
Not only were people not able to trade, they were specifically disallowed withdrawing BTC so they could trade on other sites.
Yes, people were allowed to cancel orders for 15 minutes prior, but what about this specifically:
Stop loss orders! These are usually set-up when people have to be away for a while. It's to avoid losses, for example when the price crashes 10 USD and you don't want to lose any more. Todays action specifically turned "stop-loss" in guaranteed triggered sales upon re-opening of the site. The market was taken offline so stop-loss couldn't be triggered at specified price point, in the meantime the market crashes, and upon reopening to add insult to injury if you weren't there at those 15 specific minutes your stop-loss was going to guaranteed trigger and force you to sell at the bottom just because Bitfinex took the liberty to take the site offline, wait for the market to crash and reopen it then, while first allowing people to remove liquidity from the orderbook. Pardon my words but THAT IS FUCKING CRIMINAL.
yes I'm mad. No I didn't lose money in stop-loss, i lost money because i was not allowed to have my BTC when they fucked their trading engine. I saw the market slide yet could do nothing.
If this doesn't tell all of us to stay the fuck away from Bitfinex in the future, I don't know what will.
The U.S. Commodity Futures Trading Commission (CFTC) ordered Bitfinex, a Hong Kong-based bitcoin exchange, to pay $ 75,000 for offering illegal, off-exchange, financed retail commodity transactions in cryptocurrencies, and for failing to register as a futures commission merchant (FCM) as required by law, according to a CFTC press release. The order requires the exchange to cease […]