The Reason Why Brazil’s Foxbit Crypto Exchange Was Closed for 72 Hours

The biggest Bitcoin exchange in Brazil was temporarily closed for more than 72 hours. The reason was the lack of 30 Bitcoins, equivalent to $ 270,000. The company found that users made double withdrawals of their coins.

We are talking about Foxbit crypto exchange based in São Paulo. The company’s CEO João Canhada and Chief Operating Officer Luís Augusto Schiavon used a livestream on YouTube channel to share with others about the bug that took place inside Foxbit’s system.

https://www.youtube.com/watch?time_continue=58&v=qdr0QcTH_1U

They disclosed that users have benefited from the technical problem of the system and duplicated 130 withdrawals. Immediately after the system alarmed the leaders, they temporarily blocked the platform to solve the incident.

“What happened was a failure with duplicate looting in approximately 130 transactions (30 bitcoins), and at the beginning of this correction the database index was corrupted”, according to the Press Release.

The issue is solved!

According to company’s managers, the issue has been solved since yesterday, March 13, 2018. They even have published an official Press Release in order to inform users that the platform hasn’t been hacked.

“All funds are protected, both in reais and in bitcoins. Several clients have already returned duplicate values and we are in touch with everyone. We have a specific fund to cover possible losses and the funds in reais are safe in our bank accounts. The platform was neither hacked nor stolen. “

Users have begun to return the missing digital assets, but it’s still not known how much of the missing funds have been returned. Users’ wallets sum up to a total of 7.500 BTC, that’s why the company has mentioned that a loss of 30 BTC doesn’t damage the Foxbit’s platform.

In order to protect users’ funds in possible downtime of the platform, the team is set to block some orders, so that customers will not be able to manage their accounts.