Bitcoin drops more than 10% after security breach

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The yment of bitcoin has fallen more than 10% after the Hong Kong-based digital currency reciprocation Bitfinex said it had suffered a major hack.

The security breach led to the credible theft of bitcoin worth $65m (£49m).

Bitfinex told the Reuters tidings agency on Wednesday that nearly 120,000 bitcoin were borrowed from its exchange platform.

All transactions on the virtual exchange have been suspended while the pledge breach is investigated.

In a statement on its website, Bitfinex said that it was “thoroughly concerned about the issue and we are committing every resource to try to resolve it”.

The ruin is one of the biggest thefts in bitcoin’s history and is being treated as a “major allot” by many in the virtual currency community.

“Unfortunately, we continue to have vulnerabilities in the compose of exchanges and wallets,” former Singapore-based bitcoin broker David Moskowitz told the BBC.

“The vulnerabilities about always occur on the exchange or wallet side and this is an area that keep ons to need improvement and more secure protocols, no different than when a bank be involved ins robbed.”

Securing bitcoin trading platforms has been a key challenge, with tiring and thefts seen as the biggest threats.

In 2014, the Tokyo-based Mt Gox trading interchange declared bankruptcy when hundreds of millions of dollars in bitcoins vanished or were made.

But Mr Moskowitz stressed that in spite of the latest alleged theft “the middle protocol is extremely robust and has not been hacked”.

He said while there order most likely be a price correction in bitcoin, he remained confident that it desire continue to be an appealing alternative asset.

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