The impact of DDoS and other security shocks on Bitcoin currency exchanges: Evidence from Mt. Gox

Amir Feder, Neil Gandal, J. T. Hamrick, Tyler Moore*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

We investigate how distributed denial-of-service (DDoS) attacks and other disruptions affect the Bitcoin ecosystem. In particular, we investigate the impact of shocks on trading activity at the leading Mt. Gox exchange between April 2011 and November 2013. We find that following DDoS attacks on Mt. Gox, the number of large trades on the exchange fell sharply. In particular, the distribution of the daily trading volume becomes less skewed (fewer big trades) and had smaller kurtosis on days following DDoS attacks. The results are robust to alternative specifications, as well as to restricting the data to activity prior to March 2013, i.e., the period before the first large appreciation in the price of and attention paid to Bitcoin.

Original languageEnglish
Pages (from-to)137-144
Number of pages8
JournalJournal of Cybersecurity
Volume3
Issue number2
DOIs
StatePublished - 1 Jun 2017

Funding

FundersFunder number
Tel Aviv University

    Keywords

    • Bitcoin
    • Cryptocurrencies
    • Distributed denial of service

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