Bitcoin prices dropped on DDoS Attack

Bitcoin prices dropped on Wednesday, due to a hacker attack over the two largest Bitcoin-trading exchanges.

Slovenia-based Bitstamp, the world’s largest Bitcoin exchange, reported it stopped customer withdrawals in order to fix the issue on Tuesday night. Bulgaria-based BTC-e, the second-biggest Bitcoin exchange, reported it was also experiencing delays in processing transactions.

Both exchanges report the processing issues are due to a denial-of-service attack. In denial-of-service attacks, hackers make a machine or network resource unavailable to its intended users by flooding it with information requests.

The current attack comes after Tokyo-based Bitcoin exchange Mt. Gox, now the third-largest Bitcoin exchange, was forced to stop all Bitcoin withdrawals due to a technical issue late last week.

BTC/USD dropped 8.9% to trade at $514.00 on Mt. Gox.

The price of a Bitcoin last traded at $653.50 on BitStamp, while prices on BTC-e traded at $641.10.

According to the CoinDesk Bitcoin Price Index, which averages prices from exchanges including Mt. Gox, prices of the crypto-currency tumbled 2.75% to hit $651.00.

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