The news just dropped. Funds are frozen, you cannot withdrawal nor deposit.

Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.

We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.

The theft is being reported to — and we are co-operating with — law enforcement.

As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.

We will post updates as and when appropriate on our status page, bitfinex.statuspage.io. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community’s patience as we unravel the causes and consequences of this breach.

## While most funds are safe, the bigger problem is current market situation and easy money on BTC shorting and ETC longing. I have suggested this 2 days ago here and positiosn were pure profit.

I mentioned this in another thread, but will say it again; we need to find a way to make trustless insurance contracts so that exchanges can protect their customers fund's from these attacks.
Even in the form of prediction market or option contract might work, where market participants could individually asses the likelihood of a successful attack, and then take on some of the risk in exchange for a premium.

zanetackett • 30m
I can confirm that the loss from the hack stands at 119,756btc

[9:10]
zanetackett • 2m
We don't use cold storage and has stated as such ever since we implemented bitgo, we use segregated customer multi-sig wallets. We're still investigating how this happened and how our security measures were bypassed.
They don't fucking use cold fucking storage????