Archive for the ‘Crypto News’ Category

bitfinex-logo

The crypto currency exchange Bitfinex has officially announced that it has experienced a security breach and as a result had to halt trading and stop access for everyone until the situation is resolved. As a result of the hack it seems that the funds of some users of the exchange have been stolen, but nobody knows how bad the situation was apparently. The markets have immediately responded with a sharp drop of the Bitcoin price, a further drop of the already declining BTC exchange rate in the last days…

Below is a quote of the official announcement about the security breach at Bitfinex:

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

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.

The theft is being reported to — and we are co-operating with — law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page, bitfinex.statuspage.io. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.

ethereum-classic-logo

Ehereum (ETH) has successfully hard forked a few days ago and moved on a new chain, however this also brought to life Ethereum Classic (ETC) that continue to run on the old blockchain without any modifications that were made by the forking Ehereum (ETH). Initially the support for Ethereum Classic was a bit questionable, but after Poloniex – the current largest Ethereum (ETH) exchange added a market for trading ETC as well things started turning. There are already a few exchanges trading ETC with more probably soon to follow, multiple services such as block explorers and quite a few mining pools already available. The current value of 1 ETC is about 1/20th that of 1 ETH, but the daily volume traded on Poloniex shows that the Ethereum Classic has almost half the volume of Ethereum.

The most important question that people probably have at the moment is how they can get a hold of their ETC coins based on the ETH they are holding. There are some good and some bad news here, if you were running a local wallet then the ETH coins you had in it prior the hard fork will also give you the ability to have the same amount of ETC coins. What you will have to do is to run a copy of the blockchain prior the hard fork at block 1920000 and run a pre-hardfork client such as geth earlier than version 1.4.10. Of course for the ETH coins you would still need to run the original blockchain with a client supporting the hardfork (make sure you use different directories for storing the two chains). If you had all of your ETH coins in an exchange or an online wallet, then you might be out of luck unless that wallet or exchange provides support for ETC as well. In the case of Poloniex any ETH that you help in the exchange resulted in you getting the same amount of ETC, however still only a few exchanges do provide support for ETC.

At this point it is quite hard to say what is the actual amount of ETC coins that can be operated by their owners and unfortunately there is the chance that some exchanges that do not officially add support for ETC can still get a hold of the ETC coins that were available as ETH balances prior to the hard fork. So at the moment it is still hard to predict what exactly will happen with Ethereum Classic, all we can say is that we are seeing peak in user interest and support, but will that be enough to establish ETC as a long term alternative to ETH or not is still hard to say. So you might want to keep an eye out for ETC and if you can get a hold of your Ethereum Classic coins you should do so just in case. As for those of you that may decide to mine ETC (it is on a separate chain after the hard fork) you should know that there is still a quite a bit of risk involved and ETC future is still a bit uncertain. We are going to be keeping a track of how things with Ethereum Classic progress further on and keep you updated on how the situation evolves.

For more information about the Ethereum Classic (ETC) alternative visit the official website…

ethereum-hard-fork

The plans for the upcoming Ethereum hard fork that is designed to fix the issues around the DAO situation have been published, with the hard fork planne to take place at block number 1922000 that should hit around 20th of July though it may depend on your time zone. The idea is to have the hard fork take place shortly before the 21.07, which is the date in which the DAO attacker can split. Some of the Ethereum clients such as Parity and the most widely used Geth have a hard-fork implementation for The DAO now, though they have not released updates for the hard fork yet. Other clients like pyethereum, or libethereum already started their implementations of the hard-fork, so it is certain that they will release a new version including the hard fork with the same date. Do note that you will need to update your local Ethereum client before the planned block in order to ensure that you will be able to continue using it after block 1922000. With hard forks you need to update your client in order for it to continue operating properly on the network as it includes mandatory changes making older releases incompatible.

Ethereum is also extending their bounty program to include vulnerabilities found in the hard fork specification. This includes the specification itself, the associated smart contract code that is defined in the specification, and the implementations in geth, cpp-ethereum, parity, and pyethapp clients. So people that find issues in the code and report them can be rewarded for their efforts and at the same time they will be making Ethereum safer and more problem free for use in the future.

To read more details about the upcoming hard fork of Ethereum intended to resolve the DAO situation…


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