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BitMEX CTO Reveals Root of Last Week's Service Problems

Mon, 03/16/2020 - 11:56
Vladislav Sopov
The BitMEX crypto derivatives trading platform investigated the origins of the service operations downtime on 'Black Thursday'. The project CTO unveils the first details.
Cover image via github.com
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Today, in the early morning hours, Arthur Hayes, founder of BitMEX, a leading crypto derivatives exchange, admitted that his service received 'questions and concerns' on why the platform went down twice during the last round of the crypto massacre. According to him, the BitMEX team is 'gathering the facts' and will explain what happened. 

First details of the dramatic moments

Two hours after Mr. Hayes tweeted about the research, the Chief Technical Director of the platform, Samuel Reed, disclosed that BitMEX had suffered two attacks from one botnet. Thus, the service halted operations.

According to Mr. Reed, it was this botnet that attacked BitMEX one month ago. Though, in the previous case, the attack was mitigated by a DDoS-protection system. On March 13, the malefactors used a much more sophisticated strategy and managed to stop BitMEX's operations. 

However, the director is sure that the BitMEX team is on the right track as it reconsiders the back-end of the platform:

We're making systemic changes on our backend to ensure this can't happen again, and re-reviewing older systems to simplify, de-couple, isolate, and improve performance

When latency costs too much

The recent bloody Bitcoin (BTC) price drop, according to the vast majority of analysts, correlated with the massive $700M liquidation of positions on BitMEX. It was only their halting of operations that saved the price of the orange coin from further free fall.

Almost $700 Mln Bitcoin (BTC) Positions Liquidated On BitMEX

Immediately after the downtime, the BitMEX team announced that one of the cloud computation providers of the platform was facing 'hardware issues'. However, the situation had already affected markets so severely that soil for 'conspiracy theories' had already been sewn.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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