Summary of The Wretched, Endless Cycle of Bitcoin Hacks

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Modern-day bank heists don’t take place in steel-walled bank vaults, but, rather, online via hacks and the theft of digital keys. Bloomberg tech reporter Yuji Nakamura, with additional reporting by Olga Kharif, details the millions of dollars lost to multiple cyberattacks on digital currencies, including bitcoin. His message serves as a warning for all those interested in investing in digital money. Nakamura explains how companies have dealt with their losses and suggests that regulation is imminent. While never giving financial advice, getAbstract recommends this article to digital currency proponents and technology enthusiasts.

In this summary, you will learn

  • How hackers continue to steal from bitcoin communities,
  • How they are reacting to the security breaches and
  • Why some form of regulation is necessary if bitcoin is to survive.

About the Authors

Yuji Nakamura is a tech reporter for Bloomberg News. Olga Kharif is a technology writer for Bloomberg Businessweek.



In August 2016, hackers stole $65 million from Bitfinex, the largest bitcoin exchange for the US dollar. What’s perhaps most frustrating about this theft is that the digital currency industry has spent years trying to improve its infrastructure and learn from previous mistakes, but it wasn’t enough. To cover the $65 million loss, Bitfinex took 36% of its clients’ assets. Adding insult to injury, bitcoin value dropped significantly, resulting in $1.2 billion in losses for investors. This isn’t the first major bitcoin theft; in 2014...

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