On February 15, 2017, a hacker broke into the website of the popular cryptocurrency exchange Coinbase, and stole over 5.7 billion USD in cryptocurrency.
This included over 5 billion USD worth of ether, the cryptocurrency created by Ethereum, which is a blockchain-based virtual machine.
Since then, other cryptocurrency exchanges have reported similar thefts, including Mt.
Gox, and Poloniex.
What makes this all the more strange is that the exchange is now the target of an investigation by the SEC.
The reason behind the investigation is that Coinbase was involved in a dispute with a major cryptocurrency exchange.
The exchange that Coinbase is now suing has allegedly failed to adequately guard against fraud and other breaches of the exchange’s security, which led to the theft.
What caused the breach?
While Coinbase has not yet released the full details of the incident, the company did say that they are investigating a hack into their servers, which was first reported by the Washington Post.
According to the report, the hackers were able to access a user account, which included his password and account information.
The report also says that Coinbase had “some” evidence of a botnet attack, which has also been reported by other outlets.
Coinbase’s lawyers are currently seeking a temporary restraining order against the hackers, which could mean that the hackers will have to cease and desist with their actions.
According the report from the Post, Coinbase was notified of the hack about four hours after the incident occurred.
However, Coinbase is still investigating the hack as it relates to other issues that the company has been facing.
Coinbase is the third major cryptocurrency company to be hit with a breach this year.
In February, Mt.
Gox reported that hackers stole over $5 billion in funds in the cryptocurrency market, and it has since been suspended from its platform.
Additionally, CoinDesk has also reported that a hacker has been stealing cryptocurrency funds from Coinbase since December 2016.
In addition, Poloniox has reported a similar incident to the one Coinbase was experiencing, and the company’s lawyers have requested a temporary injunction to prevent the hacker from accessing the account and using the stolen funds.
What are the implications for crypto-trading?
As mentioned earlier, there are currently no cryptocurrency exchanges that accept bitcoins as a form of payment.
It remains to be seen how Coinbase will respond to this breach, but it could potentially lead to a drop in trading volumes for the cryptocurrency.
It is unclear whether this will lead to more theft of the cryptocurrency or simply an increase in trading volume, but the loss of this amount of cryptocurrency could certainly lead to some people taking a more cautious approach.
If the SEC does approve the filing of an enforcement action against Coinbase, the repercussions could be severe.
For example, if a major exchange is hit with an investigation into an incident like this, the SEC could potentially take action against the exchange that is responsible for the breach, potentially forcing the company to shut down.
If Coinbase loses the case, it could also result in its ability to close accounts and stop all cryptocurrency trading, which would likely lead to many traders leaving the platform.
On top of all this, a company like Coinbase could also face legal sanctions.
In a statement to Business Insider, Coinbase’s CEO Brian Armstrong said that the “lawsuit against Coinbase is about the safety and security of the trading community.
This lawsuit is about Coinbase’s failure to properly secure its trading platforms against potential cyber threats.
The law suit is about protecting the integrity of the exchanges ecosystem.”
If Coinbase does lose the case and is forced to shut the accounts of the traders who were impacted by the theft, it would be difficult for the company, as it would likely have to shut off all cryptocurrency withdrawals, which will likely lead the price of the crypto-currency to decline significantly.