On Tuesday, it said that the platform was attacked by Distributed Denial of Service (DDoS) that day, which caused the company to shut down its trading service on Tuesday. This is the second time Bitfinex has been attacked by DDoS in a few weeks.
On Monday, the US Securities and Exchange Commission (SEC) warned that cryptocurrencies are at great risk of being "stolen or lost, including hacking". On Tuesday, Bitfinex, the bitcoin exchange, was interrupted by DDoS attacks, which made the industry more worried about the security of Bitcoin.
Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), warned on Monday that investing in cryptocurrencies is risky, and the trading and public offering of such emerging asset classes may violate federal securities laws. On Monday, the US Securities and Exchange Commission (SEC) stopped the "ICO" of a restaurant review application because the company failed to register it as a securities.
Bitfinex said that after being attacked by DDoS, the company is working to solve the transaction process problems to protect customer orders. DDoS attacks, namely distributed denial of service attacks, occur when hackers try to crush systems with the activities of other systems (usually through robots). The purpose of hacker launching DDoS attack is to control the internal platform or demand ransom from the victim to stop the attack.
"These bitcoin trading markets have crossed national boundaries, and there may be major transactions on systems and platforms outside the United States." SEC Chairman Clayton said on Monday, "Without your knowledge, your investment fund may soon flow overseas. Therefore, this risk may be magnified, including market regulators, such as the SEC, which may not be able to effectively pursue these bad actors or recover funds. "
This warning is at least partly reflected in the bitcoin futures market. On Tuesday, the trading volume of bitcoin futures contracts on Cboe Futures Exchange dropped sharply, which was the second day of the futures trading.