$270,000: Brazil's Largest Bitcoin Exchange Foxbit Down for 72 Hours, 30 BTC Overlooking
Foxbit, Brazil's biggest cryptocurrency market, has been down for over 72 hours, allegedly due to a bug that allowed its users to draw their bitcoin balances twice.
Through a live stream on YouTube, the company's CEO João Canhada and COO Luís Augusto Schiavon, revealed the bug saw its users take advantage of the exchange's withdrawal system to duplicate 130 withdrawals. After realizing what was going on, Foxbit immediately launched an emergency care mode to stop withdrawals. The maintenance mode reportedly corrupted some of its service providers' data.
Per the company's executives, data is currently being revived, and Foxbit should be back up by March 14. Through a blog post, the cryptocurrency exchange informed its users that it was not hacked, and connected back to two cold pockets to show their funds were secure.
In an attempt to calm down its users, Canhada and Schiavon stated (roughly translated):
Several clients have returned replicate values and we are in touch with everybody. We have a specific fund to cover potential losses and the funds in reais are secure in our bank accounts. The platform was neither hacked nor stolen. "
While Foxbit's CEO and COO assert some users have already returned their ill-gotten funds, it's not clear how much was returned. But Foxbit assured that the money that went missing doesn't harm its performance, as it represents a small proportion of what it currently has. The pockets shown in its blog article have over 7,500 BTC in total.
To further protect users during its downtime, the platform is set to cancel several orders so users don't lose their balances while not able to handle their accounts. Nevertheless users watching the live stream asked whether the trade would make it up to them, by creating a zero-fee trading period, for example.
The corporation's CEO and COO merely stated they were paying close attention to what was going on but did not go any further.
Notably bitcoin is growing big in Brazil. Based on CryptoCompare data, the Brazilian Real constitutes 0.02% of the cryptocurrency's daily trading volume, and the country's authorities even took down a 'digital currency' pyramid scheme this past year.