http://www.zerohedge.com/news/2016-08-02/bitcoin-crashes-after-exchange-admits-security-breach Dropped down to about $465 USD only a couple of hours ago. Expect some high volatility for a while from here.
Press release seems bit iffy.,,, A bank gets robbed, it's the bank that take the lose on their book, nothing to do with customers (unless it is bankrupt and can't pay) This exchange get robbed from what it stated and they are trying to ascertain which individuals have had their bitcoins stolen in their care? Don't these exchanges have insurance?
I see it a bit like the Mt Gox debacle which smashed the bitcoin price. If an exchange has a major security/theft incident then it undermines confidence in the underlying commodity/currency. It is probably just a bit of a blip, but since bitcoin is highly sensitive to changes in sentiment and confidence it makes sense that the price is affected.
zanetackett 30m I can confirm that the loss from the hack stands at 119,756btc zanetackett 2m We don't use cold storage and has stated as such ever since we implemented bitgo, we use segregated customer multi-sig wallets. We're still investigating how this happened and how our security measures were bypassed. No cold storage?? 120k BTC's in a hot wallet?......... right.. Bye bye Bitfinex. Once again BTCe is the safest place to trade it seems.
Seriously bad news for Finex users, some of whom are facing mind blowing losses. I hope they get some or all of their funds back. But look on the bright side, volatility = opportunity BTC will recover, it always does
That is a possibility Finex has announced that it will give all users a 36% haircut on their assets so they at least don't lose everything. Since then the price has risen significantly.
