$270,000: Brazilís Largest Bitcoin Exchange Foxbit Down for 72 Hours, 30 BTC missing

$270,000: Brazilís Largest Bitcoin Exchange Foxbit Down for 72 Hours, 30 BTC missing

Foxbit, Brazilís largest cryptocurrency exchange, has been down for over 72 hours, reportedly because of a bug that allowed its users to withdraw their bitcoin balances twice. The problem saw the company lose a total of 30 Bitcoins, at press time worth roughly $270,000.

Through a livestream on YouTube, the companyís CEO Jo?o Canhada and COO Lu?s Augusto Schiavon, revealed the bug saw its users take advantage of the exchangeís withdrawal system to duplicate 130 withdrawals. After realizing what was going on, Foxbit immediately launched an emergency maintenance mode to halt withdrawals. The maintenance mode reportedly corrupted some of its service providersí data.

Per the companyís executives, data is now being restored, and Foxbit should be back up by March 14. Through a blog post, the cryptocurrency exchange informed its users that it wasnít hacked, and linked back to two cold wallets to show their funds were safe.

In an attempt to calm its users down, Canhada and Schiavon stated (roughly translated):

While Foxbitís CEO and COO claim some users have already returned their ill-gotten funds, it isnít clear how much was returned. Nevertheless, Foxbit assured that the money that went missing doesnít harm its operation, as it represents a small percentage of what it currently has. The wallets shown in its blog post have over 7,500 BTC in total.

To further protect users during its downtime, the platform is set to cancel several orders so users donít lose their balances while unable to manage their accounts. Nevertheless users watching the livestream asked whether the exchange would make it up to them, by creating a zero-fee trading period, for example.

The companyís CEO and COO merely stated they were paying close attention to what was going on but didnít go any further.

Notably bitcoin is growing big in Brazil. According to CryptoCompare data, the Brazilian Real makes up 0.02% of the cryptocurrencyís daily trading volume, and the countryís police even took down a Ďdigital currencyí pyramid scheme last year. As covered by CCN, Brazilian central bank president Ilan Goldfajn took a dismissive stance against bitcoin, and claimed it was a ďtypical bubble or pyramid [scheme].Ē

Featured image from Shutterstock.

13.03.2018 / 11:15 62
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