Thursday 18 August 2016

Bitfinex: Cause of Bitcoin Hack Still 'Unknown'

Nearly two weeks after losing more than $60m in customer funds, Bitfinex reports it has not yet identified how the theft was carried out.
In a statement released earlier today, the exchange reported it had hired Ledger Labs, a blockchain consultancy previously contracted by ShapeShift following its own cybersecurity problems, to both investigate the theft as well as perform a balance sheet audit.
Bitfinex further said that it is "reassessing" storage options in light of the hack. The incident would force the exchange to impose a 36% haircut on customer holdings, a move that continues to stoke controversy.
For now, Bitfinex has suspended its use of tools provided by security partner BitGo and has begun utilizing a hot cold wallet set up to maintain funds. As part of that reassessment, Bitfinex said that it is currently storing most of its funds in so-called cold wallets – accounts that are not connected to the Internet.
The company also responded to criticisms circulating via social media alleging it had not contributed funds to help fuel the recovery.