Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2016-08-03)

120,000 Bitcoins Stolen from Bitfinex <br/>The current price of Bitcoin is 3,500 yuan. It once fell to nearly 3,000 yuan in the early trading. The decline was nearly 1,000 yuan in a few hours, with a fluctuation of more than 30%. It has now rebounded 50% of the decline. At around 2 a.m., the trading platform bitfinex.com replaced the normal homepage with an announcement page, saying that the platform was hacked and the coins were stolen, with a total of about 120,000. The price of the coin began to fall. Two years ago, MtGox also issued an announcement that 850,000 coins were stolen, and 200,000 were recovered later. To date, there are still about 650,000 Bitcoins missing.
According to public information, the way Bitfinex saves user assets is different from other platforms. Other platforms generally store most of the coins in cold storage (offline and not connected to the Internet), leaving only a small amount of coins in hot wallets (online) for users to withdraw. Bitfinex also cooperates with Bitgo (a Bitcoin security platform) for security reasons to perform multi-signature processing on each user's coins. Multi-signature means that when a Bitfinex user wants to withdraw Bitcoin, the Bitfinex platform will confirm it once, and then notify Bitgo for confirmation. Only after both companies confirm that there is no problem will the user's withdrawal operation be released. Because the Bitfinex platform hopes to achieve transparency of funds, each user's coins are stored independently (100% reserve, clear fund flow), each user uses a different multi-signature address, and each user's withdrawal operation needs to be confirmed by both Bitfinex and Bitgo. Each user's coins are stored separately, so we saw the announcement that "some users' coins were stolen."
The mistake is that the Bitfinex and Bitgo multi-signature security solutions must be automated and all users' multi-signature addresses must be processed online. Bitgo must assume that the Bitfinex server is secure before it can work, and Bitgo has no obligation to guarantee the legitimacy of Bitfinex server requests. As long as the withdrawal request is initiated by the Bitfinex server, Bitgo may approve all of them. In this way, when the Bitfinex server is hacked and a withdrawal request is directly initiated on the Bitfinex server, Bitgo will send the currency.
What needs to be paid close attention to at present:
1. Bitfinex.com official website announcement
2. When will Bitfinex be able to operate normally?
3. Does Bitfinex have the ability to pay compensation?
4. Whether there is any coverage in news media outside the industry
5. Do other Bitgo partner platforms or companies have the same security risks?