Tuesday morning saw yet another brutal attack by hackers on one of the world’s biggest digital currency exchanges. This time the target was Bitfinex and the attack used is what is referred to as a DDoS attack (distributed denial of service).
DDoS attacks are a favorite strategy for hackers and are primarily used to disrupt or halt services by overloading servers with false transactions created by hundreds of malware-infected servers from all over the world. With such a massive influx of traffic, legitimate transactions are delayed or prevented. Following the release of Bitfinex’s statement regarding the matter, Bitcoin prices fell by 2%, according to data from CoinDesk.
Bitfinex first started as a peer-to-peer Bitcoin exchange in 2012 in Hong Kong, and soon implemented support for other cryptocurrencies. They are no stranger to cyber-attacks, as they were also heavily targeted in a campaign by hackers attempts to disrupt the industry last June. In August 2016 Bitfinex also temporarily halted trading after a cyber-attack led to the theft of almost 120,000 bitcoins.
Trading on Bitflex has since resumed as of 11 am, with Bitflex releasing a statement saying they are closely monitoring the situation and also adding the assurance that all funds are secure.