Cyber Incident Victim: Bitfinex
Date:
Feb 2017
Location:
Hong Kong
Summary
A top Bitcoin trading platform experienced a severe DDoS attack that disrupted its services for approximately one hour, initially sparing its API before subsequent mitigation efforts caused temporary API interruptions. The incident coincided with Bitcoin's price approaching record highs, a period when such platforms commonly face disruptive attacks amid heightened trading activity. The exchange successfully restored normal operations after deploying maximum security protections, continuing its position as a leading market despite previous significant security challenges.
| CIA Posture | Motives | Tactics, Techniques & Procedures |
|---|---|---|
| Available to members | 6 motives | 1 technique |
| Threat Actors | Type | Location |
|---|---|---|
| 0 actors | Available to members | Available to members |
Description
On February 21, 2017, at approximately 21:30 UTC, the cryptocurrency exchange Bitfinex experienced a severe distributed denial-of-service (DDoS) attack that disrupted its trading platform. The attack initially left the platform's application programming interface (API) operational but later impacted API functionality when Bitfinex escalated its security defenses to maximum levels to mitigate the assault. Company representatives publicly acknowledged the incident via a Twitter post, stating they were working urgently to restore normal operations. The active attack phase lasted approximately one hour before Bitfinex's security team successfully contained the disruption. Both the trading interface and API services resumed full functionality following mitigation efforts, with no reported compromise of user funds or account credentials during the event.
This incident coincided with Bitcoin's price surpassing $1,100, nearing its historical peak of $1,216.73 set in 2013. The article notes an established pattern of DDoS attacks targeting cryptocurrency exchanges during periods of significant price volatility, though it provides no attribution for this specific attack. It references unverified industry speculation that competing platforms might commission such attacks to divert trading activity during market surges, citing anonymous hacker claims of receiving such contracts without identifying sponsors. Bitfinex, headquartered in Hong Kong, maintained its market position despite this disruption and a prior August 2016 security breach involving the theft of 119,756 Bitcoin (valued at approximately $134.4 million at the time of the article). The 2016 breach had compelled a platform rebuild and loss distribution across user accounts, yet the exchange retained dominance particularly among Chinese traders. No prolonged operational or financial impacts from the 2017 DDoS attack were documented in the source material.