Bitfinex DDOS December 13th and $NEO $OMG $ETP flash crashes on November 29th

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Bitfinex just announced that their site is under a denial-of-service-attack. This is the day that Litecoin broke out of all possible all time high prices and skyrocketed to over $300:

litecoin price-bitfinexed ddos

At the same time, the incoming flow of new users to all exchanges is extremely high due to mainstream media coverage of cryptocurrencies. Coinbase app hit #1 on Apple store this week and we can only imagine the amount of traffic to other exchanges. Bitfinex, being the #1 cryptocurrency exchange by volume, could be just suffering downtime from heavy user load and calling it a DDOS.

It’s hard to say what exactly happened because the transparency of Bitfinex is so low. See Tether controversy posts (1, 2, 3), Tether hack, Bitfinex hack, – considering all that the public is extremely skeptical to everything that comes from Bitfinex.

But this time people are losing a lot of money due to Bitfinex’ downtime. Not only the December 13th DDOS/Downtime during the Litecoin rise, but also as the exchange glitched on November 29th when several altcoins ($NEO $OMG $ETP) flash-crashed and the platform was rendered unresponsive. Here’s a collection of seriously disturbing customer complaints:


350,000+ USD IN NEO GONE WITHIN 5 MINUTES from bitfinex

Sam Aiken has put together a post on the $NEO flash crash end November:


The price of ETP suddenly fell down for just 1 minute from $3.5 to $0.05 triggering all kind of stop-losses and liquidations to be executed way below the price that they were set at. A bit later ETP will fall down again from $2.7 to $1.00 and jump right back. So my position was auto-liquidated at an enormously low price and my overall balance became much smaller. And as I understand from other examples, my balance became smaller by moreamount of USD than I’ve actually backed up with collateral to buy ETP, which will later trigger a liquidation chain-reaction. Source


So once again, to recap – this is what happened. Several cryptocurrencies ($NEO, $ETP) traded on Bitfinex went significantly down for just one minute. According to third-party tools (tradingview) nothing like that ever happened. At the same time, within the Bitfinex platform, stop-loss orders were fired at prices A LOT lower they were set to. People lost tons of money.

Here’s a bunch of safety tips you could take out of it:

  • Do not trade altcoins with low liquidity.
  • Store your coins in wallets you own and not on exchanges.
  • Do not trade on margin on crypto exchanges
  • Remember your stop loss orders do not mean anything and everything can be called a “hack” or a “ddos” post-factum.


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