Bitfinex, the Hong Kong-based cryptocurrency platform is finally ready to share more information about the recent security breach. The digital currency platform has made preliminary findings of the investigation public in its recent update.
On August 2, 2016, Bitfinex detected a security breach that resulted in the theft of 119,756 bitcoin worth over $72 million as per the bitcoin price on that day. The theft has been under investigation since then with Ledger Labs in the lead. According to the report, the platform hired the services of Ledger Labs within hours of discovering the attack. In addition to an investigation of the security breach, Ledger is also carrying out an audit of Bitfinex’ balance sheets for both cryptocurrency and fiat assets and liabilities.
Ledger Labs has so far been unsuccessful in identifying the attack vector. However, the blockchain forensics and technology firm has identified few areas in the exchange software architecture that need improvement. The preliminary report has also identified a key security issue that allowed BitGo to release large amounts of funds without raising any alerts or notifications.
Bitfinex has stopped using the segregated multi-signature wallet solution offered by BitGo. Instead, it has reintroduced the previously used multi-signature cold