BTC-E announced in a tweet on June 6, 2017 that it has been experiencing a system overload. As a result, the Bitcoin/Litecoin exchange platform has been experiencing an usually slowdown in its Bitcoin network system causing delay in confirming the transactions.
Consecutive DDOS attacks
The next day at 5:04 am, the company revealed in a follow up tweet announcement that it is under a DDOS attack.
This was most likely due to the congestion that the network received when the there was an overload in the system. Naturally, a lot of BTC-E consumers did not react well to the news as this news was received with a lot of negative feedback from the followers. So far, no news has been made as to whether or not the problem has been fixed or not as BTC-E hasn’t made any follow up tweets after the last one.
Such incident is not new as the platform experienced a similar back in January 2017 wherein the platform went offline for several hours because of a DDOS attack. The site was offline for an estimated four hours which sparked a lot of negative feedback from the followers of BTC-E. This incident was due to a sharp increase in the Bitcoin prices in both the CNY and USD markets. On the same month in 2016, the platform also experienced a similar attack caused the operations for several hours.
With regard to the most recent case, followers and investors are still waiting for a response of BTC-E regarding this incident. These two incidents illustrate that the Bitcoin network system is still quite unstable with regard to ability to process information.
It is for this reason that security is extremely important in these types of platforms. When dealing with currency and money, security is a top priority because people’s money is in the system. Without a proper security system that can ensure the safety of the people’s money, companies such as BTC-E may receive a lot of backlash not only from investors but also organizations and institutes that regulate this sector.