The market stumbled yesterday after reports from the media that a Japanese cryptocurrency exchange lost $59 million in a recent hack and a Bitcoin vulnerability that could crash the network with only 12,5 BTC.
Zaif exchange, the 101st largest cryptocurrency exchange according to Coinmarketcap, detected a server error on September 17, after which they suspended deposits and withdrawals. On September 18, the exchange realized that there had been an actual hack and reported the incident to Japanese financial regulators.
Hackers have stolen $59 million worth of cryptocurrency such as Bitcoin (BTC), Bitcoin Cash (BCH) and MonaCoin (MONA).
Good news is that the firm Digital Asset Group will help Zaif cover lost customer assets by providing them with $44.5 million in exchange for becoming the majority shareholder in their company.
Adding fuel to the fire, Bitcoin Core has released an update following the recent detection of vulnerability – a fix for a denial of service (DOS).
The vulnerability could cause a crash of Bitcoin network if they attempted processing a block transaction that tries to spend the same amount twice. The vulnerability could have only been exploited by a miner by burning a block of at least 12.5 BTC worth about $80,000.
The new update has fixed this recent flaw in the network but nevertheless created panic in the community and added pressure sell that led to the recent fall.
Fortunately prices began to gain traction as soon as the Bitcoin Core updated their statement reassuring stability in the Bitcoin network.