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Bitcoin Value Comes Crashing Down Following Exchange Hack

Bitcoin community is in shock after the alleged breach of its main exchange database, Mt. Gox, causing Bitcoin’s currency value to plummet from a high of $17.5 to a few cents. The data breach occurred when a system auditor with read-only access had their data compromised reports Daily Tech (opens in new tab).

The infiltrator was found to be using a Hong-Kong based IP address to commit the crime and was able to clean out a large account and compromised its content after which he/she crashed the currency and bought them directly. It was only due to the $1000 per/day withdrawal limit that the perpetuator was prevented from causing larger damage.

This online peer-to-peer currency has no central authority and Mt. Gox is one of the most significant Bitcon players allowing people to convert Bitcoins to US dollars and back. According to Mt. Gox owner Mark Karpeles the site is not hacked and the hacker gained access to one of the auditors and managed to steal details of over 60,000 accounts. As per Karpeles no other accounts in the database had being compromised and the value of the Bitcoin and all trades will be restored to the former level i.e., before the hack. Moreover, from now on Mt. Gox will require users to go through an authentication process to verify the ownership of their account.

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.