Another Bitcoin Exchange Hacked; No Theft Reported So Far

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Hackers Indeed Love Bitcoin

While at one end, the digital currency sector is receiving warm hugs from Wall Street people; at other, it is still being backstabbed by its own internal security flaws.

This time the bad credit goes to Cryptoine, a relatively small Bitcoin and altcoin exchange, which recently admitted to have been the victim of some hacker. As per the details given by the company, the hacker found some Race Condition bug in their trading engine which he later used to access users’ account balances. However, Cryptoine claimed to have manipulated the orders which ended up providing fake balances to the hacker.

What is Race Condition Bug?

As we dig further into the internet to know what the heck Race Condition Bug actually is, we got to know that it is some sort of error that appears against the input of the programmers. In this case, a false signal tries to be compiled before the programmers’ signals in order to produce an unintended output.

In case of Cryptoine, there might not have been proper security systems installed to detect such a conflicting bug. The hacker was clearly able to breach inside the electronic software system to create a fake signal. The Bitcoin exchange however has promised to release more details in future, which might give us a proper view of what exactly happened.

No Bitcoin Theft Reported

Due to its lower risk profile, the Race Condition Bug never resulted a monetary loss like what we have been seeing in the hacks of other exchanges, the very recent being BitStamp. However, there is still need to address the ongoing security loopholes in Bitcoin trading platforms, especially in times when the whole digital currency community is making its mark before the regulators and potential long term investors.