Chinese State Media Blames Angry Bitcoin Investors for Hacking Central Bank

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Chinese State Media Blames Angry Bitcoin Investors for Hacking Central Bank
Chinese State Media Blames Angry Bitcoin Investors for Hacking Central Bank

Chinese State Media Blames Angry Bitcoin Investors for Hacking Central Bank

It seems China is in an all-out war on Bitcoin as now Chinese state media is blaming angry Bitcoin investors for hacking the country’s central bank. This is though on expected line after the Chinese government declared Bitcoin unsuitable for financial transactions, a sort of rejection for the virtual currency which recently reached the $1200 mark.

However, there has been a steep decline in the value of Bitcoin in the last week after the decision was taken by the Chinese government that Bitcoin cannot be considered a currency and it cannot be used for financial transactions. Bitcoin which gained a lot of momentum and traction once Chinese search engine Baidu started accepting them, lost its value to a great extent after.

The official site of the People’s Bank of China (PBOC) went down around 5 p.m. local time Wednesday; though, the reasons are unknown, the state media is blaming that it is being done by the angry investors who have lost immense wealth due to the declined exchange rate of the virtual currency.

Disgruntled Bitcoin Investors behind the Nefarious Attack

According to China News Service, a state owned media group it is being carried out by the disgruntled Bitcoin traders after the central bank curbed Bitcoin transactions in China. In fact, the news agency cited central-bank officials as saying were aware of the issue and had been working to bring the site back online.

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Despite all such news coming from various quarters, there is no confirmation whether the problem was related to Bitcoins. For instance, BTC38, a Chinese Bitcoin exchange, in its statement said that some Internet users claimed the central bank was hit by a DDoS [distributed denial-of-service] attack.

BTC38 said that it strongly condemn those hacker. It even claims that its site has also been DDOS’d several times. No matter what, those attacks are irrational and illegal. The unwelcome developments are coming after the PBOC and several top regulatory agencies warned in a joint statement that Bitcoin “is not a real currency.”

Bitcoin which was moving upward and had generated a lot of curiosity among investor faced a setback as the guidelines on the part of PBOC prompted Chinese financial institutions and payment processors not accept Bitcoin transactions. A major blow came on Wednesday when China’s two major Bitcoin exchanges — BTC China and OKCoin — announced they would temporarily stop accepting yuan deposits.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

  • Anonymous

    “National Money as a Barrier to International Trade”, Rose & Wincoop