How a few hackers and a Tokyo whale crashed the crypto-markets
The price of bitcoin cratered 20 percent last week, widely attributed to two unrelated events.
First: the bankruptcy trustee of Mt.Gox disclosed that he had sold $400 million worth of Bitcoin and Bitcoin Cash to repay creditors over the course of the last several months. This Tokyo whale still has $1.9 billion to sell.
Also this week, a group of hackers compromised users credentials at the exchange Binance (see Thursday's story) enabling a few small thefts. The hackers allegedly exchanged users' bitcoin into small-cap altcoins, in an attempt to manipulate markets.
While Binance claims that its users suffered few losses, the event left traders feeling uncertain. The hackers had gained access by collecting user data over a long period of time, only springing to action once they had enough. What other traps lie waiting for exchange users?
This week's news recap
Monday: As it generates shocking revenues, Coinbase hit with insider trading lawsuit
Tuesday: FinCEN says ICOs are "generally" money transmission businesses
Wednesday: SEC says online crypto-trading platforms must register as exchanges
Thursday: How hackers compromised Binance, last year's breakout exchange
Friday: The strange ways Bitcoin miners change rural counties
Further reading this week
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Image courtesy of Wikipedia.