Technology

Bitfinex Is Down Due To “Heavy” DDoS Attack, Coinbase Down Too [UPDATED]

The latest:

There are reports that Bitfinex is down still, and it’s possible Coinbase is down for a few users as well. However, the websites of both cryptocurrency exchanges appear to be up and running. Bitfinex actually tweeted that its API was down. Just minutes ago, Bitfinex posted an alert on its status page saying that “some” services are returning online, but with “reduced performance.” Meanwhile, the cryptocurrency exchange continues to fight the ongoing DDoS attack against it.

At first glance, it looks like the outages are unrelated. We reported earlier that Bitfinex is down due to a massive days-long cyber-attack, while Coinbase has said previously that it was down for maintenance. That’s the error that many users saw on its website this morning.

Reports that Bitfinex is down and Coinbase is down

Bitfinex management said on December 7 that the DDoS attack they have been dealing with for days had worsened, and they advised users to monitor the exchange’s dashboard site for updates on the attack.

Coinbase’s Global Digital Asset Exchange went down for a short time on Monday afternoon. The company cited problems with its API in an alert posted on its website. It took only minutes for Coinbase to get things back up and running, however, while Bitfinex has apparently been having issues for days. Coinbase’s service, on the other hand, appears to go down briefly from time to time.

Any exchange that supports trading for cryptocurrencies must have servers that are able to handle mass amounts of traffic. Coinbase management have been talking about their expansion to handle all the excessive traffic caused by enthusiastic investors wanting a piece of the rapidly ballooning market.

SEC warns about cryptocurrency trading

There’s certainly no question that maintenance would be needed for cryptocurrency exchanges these days, but it’s unclear whether Coinbase is dealing with the same type of severe DDoS attack Bitfinex has been fighting. The skyrocketing value of Bitcoin and now other cryptocurrencies makes both exchanges seem like prime targets for an attack.

The U.S. Securities and Exchange Commission warned investors late Monday that online trading of digital currencies may not be safe. The market isn’t regulated yet, so investors have no protections. The cryptocurrency market spans national borders and could include many platforms and systems that are outside the U.S.

Thus, SEC Chairman Jay Clayton said in a statement that investors’ funds could “quickly travel overseas” without their knowledge. He also said that the risks associated with trading cryptocurrencies could be “amplified, including the risk that market regulators, such as the SEC, may not be able to effectively pursue bad actors or recover funds.”

Previously: Bitfinex isn’t the only cryptocurrency exchange down right now. Apparently, Coinbase is down too, although it’s unclear whether this is related.

First report: Bitfinex is down this morning after what the company describes as a “heavy” distributed denial of service DDoS) attack. The company tweeted again this morning that the attack continues, maintaining that the outage is due to a cyber-attack and not because its servers are being overloaded by countless people trying to cash in on the Bitcoin craze.

bitfinex is down
geralt / Pixabay

Bitfinex is down

Bitfinex describes itself as “the world’s leading cryptocurrency exchange,” so Bitcoin isn’t the only cryptocurrency that’s traded on the exchange.