Mt. Gox is a Bitcoin exchange that went bankrupt after getting hit by hackers last month. The hackers stole over $400 million worth of Bitcoin from Mt. Gox. How did they get in?
Apparently the hackers hit Mt. Gox with slightly under 150,000 DDoS attacks per second for several days before the Bitcoins were stolen.
Mt. Gox filed for bankruptcy protection last month and was hit by the cyber-attacks around February 7th. according to the Yomiuri Shimbun. Hackers use multiple computers to send floods of requests to commit distributed denial-of-service (DDoS) attacks. Mt. Gox’s lawyers said that around 750,000 Bitcoins that belonged to customers of the service and another 100,000 of its own were stolen.
Bitcoin is created using chains of interactions among a large network of computers around the world. In the first two years of existence, Bitcoin was traded for cents on the dollar. It really started to climb in 2011 and jumped from $40 in late 2012 to $1,100 last year. It has now leveled to between $600 and $700 today.
[Source: AFP via BI]