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Major Bitcoin Exchanges Crippled by DDOS Attacks Amid Record Price Rally

· June 15, 2017 · 12:45 pm

Denial-of-service attacks brought several major Bitcoin exchanges to their knees this week, leaving traders locked out of the system, as hackers reap the market rewards.


Ongoing Cyber Attacks

DDoS attack

The DDoS attacks, timed to occur during intense periods of trading, gain the hackers a market advantage during price swings. Allowing them to game the price difference on compromised exchanges. Users are left locked out of the system during what could be crucial time periods of market activity.

Bitfinex, the largest U.S dollar-based bitcoin exchange has admitted that their platform was under DDoS attack. However, despite what they refer to as ongoing attacks, they do say that “Most users will be able to use the platform normally.” and released the following tweet;

BTC-e is also believed to have been affected, as their site went down temporarily. They also posted a tweet acknowledging the issue though it has since been deleted.

Market Fears and Due Caution

While no coins were directly stolen from users during the attacks, the ensuing instability caused significant chaos nonetheless. Those who remember, or were victims of, the disappearance of the Mt.Gox and Cryptsy exchanges, know that Bitcoins should not be left on these platforms in case of more catastrophic attacks.

Users engaged in Margin trading on these sites are particularly at risk as they are unable to close their positions and stand to lose a lot of money if no stop-loss measure has been put in place.

In an interview with CNBC, Benjamin Roberts, co-founder and CEO of digital currency trading start-up Citizen Hex offered this warning to cryptocurrency investors:

Investors with assets on centralized cryptocurrency exchanges should be careful. The track records of these organizations are not good, and as the assets on the exchanges grow, so does the bounty for attacking or hacking them.

Unprecedented New Interest In Bitcoin

Bitcoin exchanges are also under the pressure of a surge of new users who are noticing Bitcoins price gains.  The price of Bitcoin climbed to $3000 this week before plunging down to $2400, a move which does nothing to allay fears about the famously volatile coin.

Bitcoin exchange Coinbase has struggled to keep up with the massive influx of new customer registrations. CEO Brian Armstrong recently tweeted:

The CoinBase site has been down this week too, something they put down to the high traffic they were experiencing.

Should the exchanges be doing more to protect their users? Are they improving? Have you had an experience with the exchanges you’d you like to let Bitcoinist know about? Let us know in the comments below.


Images courtesy of Twitter, Shutterstock

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Federal Reserve Faced Hundreds of Cyber Attacks Since 2011

Source: bitcoin

Bitcoinist_Federal Reserve

According to a report from the Federal Reserve, the financial institution has faced over 300 cyber attacks between 2011 and 2015. This number is quite significant, but it is not surprising in the last, as hackers have taken a liking to attacking financial institutions.

Also read: Spoofed Kraken Email Is A Mt.Gox Victims Phishing Attempt

Although the report is only available in heavily redacted format, Reuters has managed to extract some interesting details. In several dozen occasions, somebody managed to access information that was beyond their level of authorization. Most of these attacks were executed by hackers and spies, though, rather than people working for the Federal Reserve.

Federal Reserve Is A Popular Target

It is important to keep in mind this report only serves as a representation of what has really gone on behind the scenes. Financial institutions such as the Federal Reserve are constantly under threat. However, the report only mentions attacks affecting the Board of Governors, rather than the privately owned branches.

Malicious code, unauthorized access, and information disclosure were the most common threats to the Board of Governors.Interestingly enough, the Federal Reserve’s national cybersecurity team greatly exceed the number of reports by the local cybersecurity team.

In total, 310 reports were filed by the Board of Governors between 2011 and 2014. Nearly half of those attacks were labeled as hacking attempts, although some reports were not classified under a specific banner. Moreover, there have been eight information breaches between 2011 and 2013, all of which occurred through malicious code used by hackers.

Espionage is a factor as well through these incidents, as four incidents were classified under this moniker. Two of these attacks resulted in data being stolen, although the report doesn’t mention specific details. The Federal Reserve report mentioned an additional 51 information disclosure incidents.

What are your thoughts on the Federal Reserve not disclosing the full truth about cyber attacks? Let us know in the comments below!

Source: Reuters

Images courtesy of Federal Reserve, Shutterstock

The post Federal Reserve Faced Hundreds of Cyber Attacks Since 2011 appeared first on Bitcoinist.net.

Federal Reserve Faced Hundreds of Cyber Attacks Since 2011

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