HONG KONG — Nearly 120,000 units of digital currency bitcoin worth about US$72 million was stolen from the exchange platform Bitfinex in Hong Kong, rattling the global bitcoin community in the second-biggest security breach ever of such an exchange.Bitfinex is the world’s largest dollar-based exchange for bitcoin, and is known in the digital currency community for having deep liquidity in the U.S.Zane Tackett, Director of Community & Product Development for Bitfinex, told Reuters on Wednesday that 119,756 bitcoin had been stolen from users’ accounts and that the exchange had not yet decided how to address customer losses.“The bitcoin was stolen from users’ segregated wallets,” he said.The company said it had reported the theft to law enforcement and was cooperating with top blockchain analytic companies to track the stolen coins.Last year, Bitfinex announced a tie-up with Palo Alto-based BitGo, which uses multiple-signature security to store user deposits online, allowing for faster withdrawals.

“Our investigation has found no evidence of a breach to any BitGo servers,” BitGo said in a Tweet.“With users’ funds secured using multi-signature technology in partnership with BitGo, a lot more is at stake for the backbone of the bitcoin industry, with its stalwarts and prided tech under fire,” said Charles Hayter, chief executive and founder of digital currency website CryptoCompare.ethereum tutorial videoThe security breach comes two months after Bitfinex was ordered to pay a $75,000 fine by the U.S.bitcoin coin splitCommodity and Futures Trading Commission in part for offering illegal off-exchange financed commodity transactions in bitcoin and other digital currencies.1 gh bitcoin miningTuesday’s breach triggered a slump in bitcoin prices and was reminiscent of events that led to the 2014 collapse of Tokyo-based exchange Mt Gox, which said it had lost about US$500 million worth of customers’ Bitcoins in a hacking attack.buy litecoin visa card

Bitcoin plunged just over 23 per cent on Tuesday after the news broke.On Wednesday it was up one per cent at US$545.20 on the BitStamp platform.bitcoins per pscTackett added that the breach did not “expose any weaknesses in the security of a blockchain,” the technology that generates and processes bitcoin, a web-based “cryptocurrency” that can move across the globe anonymously without the need for a central authority.ethereum samplesA bitcoin expert said the scandal highlighted the risks of companies using cryptography for their ledgers.bitcoin blue fury“The more you rely on its benefits, the greater the potential for damage when keys are stolen.dogecoin exchange usdWe still have some way to go to create highly secure but convenient systems,” said Singapore-based Antony Lewis.bitcoin cours du jour

The volume of bitcoin stolen amounts to about 0.75 per cent of all bitcoin in circulation.It is not yet clear whether the theft was an inside job or whether hackers were able to gain access to the system externally.On an online forum, Bitfinex’s Tackett said he was “nearly 100 per cent certain” it was no one in the company.Bitfinex suspended trading on Tuesday after it discovered the breach.It said on its website that it was investigating and cooperating with the authorities.The security breach is the latest scandal to hit Hong Kong’s bitcoin market after MyCoin became embroiled in a scam last year that media estimated could have duped investors of up to US$387 million.The bitcoin trading company closed after the scandal.The president of the Hong Kong Bitcoin Association said the only way to protect information is to disperse it in so many small pieces that the reward for hacking is too small.“For an attacker, the cost-benefit strategy is quite easy: How much is in the pot and how likely is it that I’m getting the pot?” said Leonhard Weese.

Marin IvezicCybersecurity Partner at PwCChair Cyber-Physical Systems Security InstituteMarin Ivezic is a Risk Assurance Partner in PwC Hong Kong and the HK lead for blockchain technologies.Marin has worked with number of enterprises, regulators and international institutions on helping them understand opportunities and risks of blockchain technology.Marin regularly contributes to industry research and presents on internal and industry events on topics of blockchain technologies, blockchain risks and potential related social and economic impacts.2.Edmund J. LowellFounder & CEOKYC-Chain LimitedEdmund Lowell is a serial entrepreneur living in Asia since 2011, innovating at the crossroads of finance, technology and legal fields.Edmund has built a number of Fintech and RegTech products during this time including KYC-Chain which uses distributed ledger technology and biometrics to create efficiencies in both the KYC on-boarding and refresh processes for both financial institutions and account holders.3.

Jehan ChuBlockchain Advocate, Investor & EntrepreneurJehan runs the Ethereum blockchain community in Hong Kong and is a founding member of the Bitcoin Association of Hong Kong.He has engaged in a lot of organization and advocacy for the blockchain and cryptocurrency ecosystem, most recently organizing an event hosted by the Hong Kong Monetary Authority.With some partners, Jehan has also started an investment vehicle investing into Blockchain startups globally.4.Dusan StojanovicFounder & DirectorTrue Global VenturesDusan is a venture capitalist with over 20 years experience either working or investing in financial technology and electronic payment.Through True Global Ventures, Dusan has established three investment vehicles, investing exclusively in serial entrepreneurs within fintech.He is involved in Bluzelle Networks, which builds blockchain and distributed ledger solutions for the finance industry.Bluzelle has announced a global partnership, sponsored by BT with special emphasize on Hong Kong and South East Asia.5.

Aurélien MenantFounder and CEO of GatecoinAurélien is the founder and CEO of Gatecoin - an online trading platform for cryptocurrency and blockchain assets based in Hong Kong.He is regularly invited to speak at FinTech industry events and conferences such as Euromoney’s Capital Markets Blockchains Conference (Hong Kong), the Global Blockchain Summit (Beijing), Finnovasia (Hong Kong) and Inside Bitcoins (Paris, Hong Kong, Singapore).Aurélien is also a founding member of the Bitcoin Association of Hong Kong.He began his career as an investment banker, working on M&A and financial deals for major global CIBs in Europe and Hong Kong, including BNP Paribas, JP Morgan, Société Générale and Crédit  Agricole.6.Hans LombardoCo-FounderChain of Things LimitedHans is a successful entrepreneur and enthusiastic proponent of blockchain technologies.He has produced or participated in many fintech events such as Chain-Finance, Consensus, Inside Bitcoins and Innovate Finance.He is a co-founder of Chain of Things, a startup securing IoT using blockchain tech and developing blockchain+IoT applications that can enhance various industries.