Hackers are Killing BitCoin

Hackers are Killing BitCoin

Hacker swiped $65m dollars worth of BitCoin this week and the value of the CryptoCurrency was hammered.

The breach is the latest blow to digital currencies after the New York Times reported in June that hackers diverted more than 50 million from an experimental fund of another platform that trades Ether, a similar unit to Bitcn.

But the biggest case was in 2014, when the Tokyo-based Mt Gox trading exchange, then the largest in the world, declared bankruptcy when hundreds of millions of dollars in Bitcoins vanished or were stolen.

The company admitted 850,000 coins — worth around 480 million at the time — had disappeared from its digital vaults.

The collapse left a trail of angry investors calling for answers and denting the virtual currency’s reputation.

Its former CEO Mark Karpeles is facing allegations that he fraudulently manipulated data and pocketed the cash. His lawyers said last month he had been released on bail in Japan a year after his arrest on embezzlement charges.

In the wake of the scandal, Japanese lawmakers passed a bill stipulating that all “virtual currency” exchanges must be regulated by the country’s Financial Services Agency.

Bitcoins are generated by complex chains of interactions among a huge network of computers around the planet, and are not backed by any government or central bank.

Bitcoin was launched in 2009 as a bit of software written under the Japanese-sounding name Satoshi Nakamoto.

Earlier this year Australian entrepreneur Craig Wright claimed that he was the creator, but some have raised doubts over his claim.

Other digital currencies followed the launch of Bitcoin but it was by far the most popular.

In 2013 Bitcoin’s value peaked at more than 1,200 — almost as much as an ounce of gold.

But it has never reached those heights again, its value rising and falling regularly.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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