The Hong Kong based exchange, Bifinex was hacked yesterday (03 August) and has ceased all trading and funding activity. The hack affected client funds, and over 120 thousand Bitcoins were stolen from Bitfinex wallets. The Bitcoin price came trickling down over 20% after the announcement, crossing the $500 mark but has since recovered and currently sits at $550.
Bitfinex is currently investigating the security breach and it is doing so while collaborating with law-enforcement agencies. The exchange is also analyzing individual losses and may need to settle margin positions while doing so.
“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.” Bitfinex
This is one of the largest hacks to occur in Bitcoin history, and it comes at the worst possible time with the DAO and Steemit hack yet around the corner. Bitfinex was the exchange with the largest BTC/USD volume, which is one of the reasons why Bitcoin has taken such as huge hit, price wise.
News regarding the possible hard fork to deal with on chain scalability can also be behind the recent price decline since the recent Ethereum hard-fork has caused a negative price reaction, Bitcoin may follow if such hard-fork takes place. Users can keep up with the hard-fork news through the new subreddit: r/btcfork
“Wow. Just wow. Over 400 subscriptions in just 24 hours. I expected this to be big but this is phenomenal. Thank you guys. This really supports the fact that there are a lot of us out there that want to make sure satoshi’s vision of bitcoin survives, and if takes a hardfork split to do this then this is what we will do.” singularity87 on Reddit.
No official client has been launched, so there is a big possibility that the hard-fork may not even take place. If it does take place without the global consensus, it will most likely result in the same “mirror” situation we’ve seen with Ethereum, which may leave the crypto world with 2 Bitcoins. One can become worthless, or maybe they can both prosper as it seems to be the case with Ethereum and Ethereum classic, that despite being unstable, are widely accepted in major exchanges.
A community poll to discuss features regarding the bitcoin fork is also taking place and can be seen here: https://btcfork.consider.it/