The largest US dollar denomited exchange, Bitfinex, has halted trading, withdrawals and deposits after hackers stole $65m of the digital currency. In effect, the price of Bitcoin has tumbled over 13%. The security breach is alarming as Bitifinex has been touting its two-factor authentication system it has in place with BitGo.
More than $1.5 billion has been wiped from bitcoin’s market capitalization this week, according to research from CoinDesk. The price drop was reminiscent of the market reaction after Tokyo-based Mt. Gox -- then the largest bitcoin exchange in the world -- disclosed it was hacked in February 2014 and filed for bankruptcy weeks later. Bitcoin prices plunged 30 percent that month.