{"id":127992,"date":"2020-03-16T19:34:45","date_gmt":"2020-03-16T19:34:45","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=127992"},"modified":"2020-03-16T22:39:21","modified_gmt":"2020-03-16T22:39:21","slug":"advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex\/","title":{"rendered":"Advanced botnet attack caused $1.2bn in Bitcoin longs liquidation on BitMEX"},"content":{"rendered":"<p><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a>\u2019s price struggle was further exacerbated last week when the coin plunged to $3,700 on BitMEX and caused almost $1.2 billion in long contracts to be liquidated on the platform. Now, the exchange\u2019s CTO has revealed that the liquidations were caused by sophisticated botnet attacks that have been probing the platform for days and were responsible for another attack last month.<\/p>\n<h2>BitMEX addressing the huge Bitcoin drop on its platform<\/h2>\n<p>In the midst of one of the bloodiest days in the crypto market, <a href=\"https:\/\/cryptoslate.com\/companies\/bitmex\/\">BitMEX<\/a>, one of the largest cryptocurrency exchanges in the world, suffered a 25-minute outage. The Mar. 12 <a href=\"https:\/\/cryptoslate.com\/bitmex-freezes-as-xbtusd-crashes-10-below-bitcoin-spot-price\/\">outage<\/a> sent the price of Bitcoin spiraling down to <a href=\"https:\/\/cryptoslate.com\/theres-a-possibility-bitcoin-bottomed-at-3800-here-are-3-reasons-why\/\">as low as<\/a> $3,700, wiping out $1,800 from its price in a single day. According to data from Datamish.com, almost $1.2 billion in Bitcoin long contracts have been liquidated on Mar. 12.<\/p>\n<figure style=\"width: 668px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/pHt8kAiMez2K3i6JAM5FFgSUR8QpJq6aI836u9EaV6QMBSKYIZmzAbydKi3FyCERDojbPypzHjQyzfdGRt3KX97UCHL4fjKug6nkzY5yaax35o_-qLqDC38Xlb7Ek79a0wgjM3WP\" alt=\"Chart showing Bitcoin long contract liquidation on BitMEX in the past 14 days\" width=\"668\" height=\"518\" \/><figcaption class=\"wp-caption-text\">Chart showing Bitcoin long contract liquidation on BitMEX in the past 14 days. <i>(<\/i>Source: <a href=\"https:\/\/datamish.com\/\"><i>Datamish<\/i><\/a><i>)<\/i><\/figcaption><\/figure>\n<p>Immediately <a href=\"https:\/\/cryptoslate.com\/aftermath-of-bizarre-bitcoin-crash-bitmex-overtaken-by-ftx-and-deribit-in-ethereum-futures\/\">after<\/a> the event, rumors about the possible foul play from BitMEX began circulating in the crypto community, with many suspecting that the exchange itself could have caused the outage in order to <a href=\"https:\/\/cryptoslate.com\/ftx-ceo-bitcoin-price-might-have-gone-to-zero-if-bitmex-hadnt-gone-offline\/\">curb<\/a> further price drops.<\/p>\n<p>Although BitMEX was quick to respond to the issue, assuring its users that the outage was caused by hardware issues with its cloud service providers, few were convinced that the explanation was as simple as that.<\/p>\n<p>And now, the exchange\u2019s co-founder and CEO <a href=\"https:\/\/cryptoslate.com\/people\/arthur-hayes\/\">Arthur Hayes<\/a> <a href=\"https:\/\/twitter.com\/CryptoHayes\/status\/1239380825012985856\">commented<\/a> on the issue for the first time, saying that the BitMEX team has been gathering the facts in the past three days and will be addressing all of the concerns raised by the community in the following days.<\/p>\n<h2>BitMEX falls victim to botnet attacks for the second time<\/h2>\n<p>According to Samuel Reed, the chief technical officer at BitMEX, the exchange fell victim to a botnet at both 02:15 UTC and 12:56 UTC. He believes that the botnet had been probing the system for a while and found an endpoint in the platform\u2019s cloud that was \u201cconsistently\u201d and \u201creliably\u201d slow.<\/p>\n<p>The first <a href=\"https:\/\/cryptoslate.com\/market-meltdown-destroys-bitmex-order-book-leaving-crypto-market-prone-to-volatility\/\">attack<\/a> was resolved rather quickly\u2014the exchange registered the attack as dying volume on the Amazon elastic block store service. It then flailed over the database and resumed the service.<\/p>\n<p>The second attack was also quickly resolved, but this time the exchange correctly identified that it was an attack, not a problem with the cloud. While the slow query was fixed, Reed noted that there are major security updates that still need to be made.<\/p>\n<p>\u201cSome of these changes are already present. Others, like public-facing protocols around downtime, trade suspension, resumption, and communication, are in the works,\u201d he <a href=\"https:\/\/twitter.com\/STRML_\/status\/1239418265824366592\">tweeted<\/a>.<\/p>\n<p>More information about the attacks and the ways the exchange plans on improving them will be released in the coming days, Reed said, adding that details about the liquidations and the exchange\u2019s insurance funds will also be revealed soon. He also noted that they believe the same botnet was responsible for the DDoS attack the platform suffered on Feb. 15.<\/p>\n<p>However, a large part of the crypto community still remained highly critical of BitMEX, even after the exchange began <a href=\"https:\/\/twitter.com\/Ninjascalp\/status\/1239136377658396672\/photo\/1\">refunding<\/a> users who were affected by the Last-Price triggered stops set on the <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">ETH<\/a>\/USD trading pair. Many scolded the exchange for not relying on their own servers, while some even questioned whether the botnets were hired by BitMEX\u2019s own insurance fund.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin\u2019s price struggle was further exacerbated last week when the coin plunged to $3,700 on BitMEX and caused almost $1.2 billion in long contracts to be liquidated on the platform. Now, the exchange\u2019s CTO has revealed that the liquidations were caused by sophisticated botnet attacks that have been probing the platform for days and were [&hellip;]<\/p>\n","protected":false},"author":106,"featured_media":85479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6849],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Advanced botnet attack caused $1.2bn in Bitcoin longs liquidation on BitMEX<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Advanced botnet attack caused $1.2bn in Bitcoin longs liquidation on BitMEX\" \/>\n<meta property=\"og:description\" content=\"Bitcoin\u2019s price struggle was further exacerbated last week when the coin plunged to $3,700 on BitMEX and caused almost $1.2 billion in long contracts to be liquidated on the platform. Now, the exchange\u2019s CTO has revealed that the liquidations were caused by sophisticated botnet attacks that have been probing the platform for days and were [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-16T19:34:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-16T22:39:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/09\/Bitmex-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Priyeshu Garg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Priyeshu Garg\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/advanced-botnet-attack-caused-1-2bn-in-longs-liquidation-on-bitmex\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/#person\",\"name\":\"Priyeshu Garg\",\"url\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/priyeshu-garg\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/08\/author-priyeshu-garg-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/08\/author-priyeshu-garg-300x300.jpg\",\"caption\":\"Priyeshu Garg\"},\"jobTitle\":\"Analyst\",\"description\":\"Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. 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