Bitcoin values fall following cyber security breach

Charities were this week reminded of the downsides of digital currency bitcoin when its value fell more than 10% following a security breach.

Hong Kong-based digital currency exchange Bitfinex said it had suffered a major hack which led to the possible theft of Bitcoins worth $65m (£49.7m).

Bitfinex told the Reuters news agency that nearly 120,000 Bitcoins were stolen from its exchange platform.

In a statement on its website, Bitfinex said that it was “deeply concerned about the issue and we are committing every resource to try to resolve it”.

The hack is one of the biggest thefts in bitcoin’s history and is being treated as a “major deal” by many in the virtual currency community.



Experts state that digital currency vulnerabilities continue to exist in the form of exchanges and wallets, the theft of which is likened to a ‘digital bank robbery’

Securing bitcoin trading platforms has been a key challenge, with hacking and thefts seen as the biggest threats.

In 2014, the Tokyo-based Mt Gox trading exchange declared bankruptcy when hundreds of millions of dollars in bitcoins vanished or were stolen.

Analysts have however moved to reassure markets by saying that the currency is still extremely robust and it will still be viewed as an appealing alternative asset.

Related reading