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Cyber attacks and website downtimes are very regular events for cryptocurrency related service. One of the largest cryptocurrency exchanges, Bitfinex, suffered a cyber attack on Tuesday morning, 5th June. Bitfinex used Twitter to provide updates for their users. The first tweet read as following:

This “unplanned maintenance” took only about one hour and was followed by a quick update shortly later. The cryptocurrency exchange was active and fully operational once again.

In an email, Marketing head Kasper Rasmussen admitted that the exchange had been targeted by a DDoS attack. For this reason, Bitfinex was offline for an hour. However, due to its nature, the DDoS attack didn’t harm user accounts or their associated funds. Only actiive trading operations were at risk during the time of the attack. As soon as the news broke, the price of Bitcoin fell by approximately 2 percent.

Background of the attack

Bitfinex on its official statuspage described the background of the attack, the outage was due to one of our infrastructure providers.” However, the incident report also claims, that during the recovery time “the attack caused extreme load on the servers.” 

Also, Bitfinex announced they are “monitoring the situation closely” to encourage users not to fear about their funds. It is not the first time that Bitfinex suffers from an outage. Back in 2016, the exchange was hacked. The loss back then was a breathtaking 120,000 Bitcoin, approximately worth $68 Million at the time.

Bitfinex is not the only exchange struggling with DDoS attacls, the infamous cryptocurrency exchange Mt.Gox is also witnessed a DDoS attack shortly before the hack in 2013 and its closure following it shortly after. Another major cryptocurrency exchange, Coincheck has seen the biggest cryptocurrency related theft, when $500 Million worth of NEM were stolen from its wallets.

Further, South Korean cryptocurrency exchange Youbit lost a staggering 17 percent of its digital assets in a similar incident. Bitfinex took to Twitter and informed its customers about the condition on the exchange being back to normal. The tweet confirmed, “users can trade and fund on Bitfinex once again.”


Featured Image via BigStock.

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By Zoran Spirkovski

Zoran Spirkovski is a freelance journalist, brand strategist, and author published by CryptoBriefing, BeInCrypto, CryptoNewsNet, and NewsBlockchain. He writes about blockchain technology, cryptocurrency, branding, marketing, and productivity, and other stories that brew up in his mind. He writes a daily blog about the same topics at zoransp.medium.com and he regularly contributes to freelance discussion groups.

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