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4100 BTC = 1.1 mil USD at current prices. These Bitcoins were stolen from website's "hot wallet" (every shared wallet has to operate one to process current with

by M4v3R 13y ago

4100 BTC = 1.1 mil USD at current prices. These Bitcoins were stolen from website's "hot wallet" (every shared wallet has to operate one to process current withdrawals). This hot wallet was probably too hot though, as it seems that they had most of their coins online, and only about one third offline (other services claim to store 80-90% offline). According to postings on Bitcointalk.org forums people are getting back partial refunds. One person claimed to receive 37% of his balance back [1]. UPDATE: Correction - according to [4] it seems that almost all funds were stoled in the hot wallet, and the hacker was "nice" enough to not steal it all at once, presumably to stay undetected and come back for more. I'm not sure if I buy this argument though. Also, according to the owners the hack occurred on 26th October [2]. It may be possible that if you deposited funds after that date you will receive full refund, as they should still be on their wallets. Unless hackers took that too. UPDATE: Also according to [4] the funds that were being deposited after 26th were being withdrawn at the same time by other users. So they're as gone as the ones from before 26th. You will be refunded in full only if you deposited very recently. This whole situation (and a bunch of previous ones) is also why at Bitalo [3], we are developing an exchange which will not have this problem, as we use multi-signature addressees to store the coins. This means that you need two signatures to spend funds - one from us, and second one from the user. We also never transmit users password over the wire, as we use SRP protocol for authentication. In unrelated news, China just passed 1800 CNY per BTC :). I wonder how's the security status of chinese exchanges/wallets. Unfortunately I don't know the language, so can't test that. [1] https://bitcointalk.org/index.php?topic=248803.msg3505884#msg3505884 https://bitcointalk.org/index.php?topic=248803.msg3505884#ms... [2] https://bitcointalk.org/index.php?topic=248803.msg3505966#msg3505966 https://bitcointalk.org/index.php?topic=248803.msg3505966#ms... [3] http://bitalo.com http://bitalo.com (in private beta, drop a message to martin@bitalo.com to receive an invite) [4] https://bitcointalk.org/index.php?topic=248803.msg3506034#msg3506034 https://bitcointalk.org/index.php?topic=248803.msg3506034#ms...

deleted 13y ago
[deleted]
clarkmoody 13y ago
I see what you did there[3] ;-) Also, it's a shame that this kind of breach happens, but it seems like it's been a while since a "$COMPANY hacked X BTC stolen" headline was out there[1]. There seem to have been more of those in the past and they appear with less frequency, which is a good thing, I guess. [1] Silk Road doesn't count toward this recollection, since it falls under the "Bitcoin $COMPANY busted by the feds" headline, which will probably happen more often in the future.
- M4v3R 13y ago
  It's probably because the market for such services is slowly saturating. Entry bar is quite high, and people are not willing to use newly released services as much anymore, as it was before. So yeah, it's good that the rate is decreasing, but unless we remove the source of this (i.e. move away from "hosted Bitcoin wallets" scheme) this will still happen in the future.
- chii 13y ago
  i m ok with the feds stamping out crime. But i m not ok with the feds stamping out something which also has use outside of crimes. I sincerely hope bitcoin transactions aren't associated with crime, so that its popularity can grow more mainstream.
  - venomsnake 13y ago
    If you have read the whole story of Silk Road they didn't busted them for bitcoins but for drug trading. And they explicitly stated there were legitimate uses. From what I have read the current Fed stance is - if you think BitCoin is money, we are ok with that as long as you comply with all regulations.
- b1z 13y ago
  You're right. I think the last few big online wallet breaches were Instawallet, and MyBitcoin. For anyone who wants to get their missing BTC out of inputs.io (who doesn't), I've written a blog post here: http://bitcoinreviewer.com/inputs-io-hacked-refund/ http://bitcoinreviewer.com/inputs-io-hacked-refund/
joelrunyon 13y ago
> I know this doesn't mean much, but I'm sorry, and saying that I'm very sad that this happened is an understatement. Um....I don't see how anyone is okay with this answer.
- akinder 13y ago
  Because bitcoin! Way of the future man! No thanks, I'll stick with insured deposits. Imagine if your bank called you up and said "Your money is gone, but we're reeeeeally sorry."
  - radisb 13y ago
    Actually this happened in Cyprus very recently...
deleted 13y ago
[deleted]
- tempestn 13y ago
  Meh, he provided a bunch of useful and relevant info, and subtly (but not misleadingly) plugged his business. I don't mind.
  - deleted 13y ago
    [deleted]
  - tempestn 13y ago
    I wish the [Deleted] thing didn't blend in so well with the post above. Always ends up confusing me for a second.
- M4v3R 13y ago
  What's wrong with posting an alternative solution to the problem? If someone else developed this kind of service, I would post it here instead, because I'm in Bitcoin from 2011 and I believe it will succeed. Unfortunately no one to date did this yet, that's why we come in.
  - deleted 13y ago
    [deleted]
grey-area 13y ago
What sort of server is Bitalo hosted on?
smoyer 13y ago
When you're hacked, I hope someone posts a self-serving expose here.
artiface 13y ago
Interesting I had missed where he claimed the hack occurred 10-26. Because he pointed[1] to this transaction https://blockchain.info/tx/9536feebe3a50b94f85ca27d56e669a7209bd4188385d55c5b97227c95cf7f74 https://blockchain.info/tx/9536feebe3a50b94f85ca27d56e669a72... as the blockchain evidence. That transaction was on 10-23 [1] https://bitcointalk.org/index.php?topic=248803.msg3509247#msg3509247 https://bitcointalk.org/index.php?topic=248803.msg3509247#ms...

by M4v3R 13y ago

deleted 13y ago

[deleted]

clarkmoody 13y ago

I see what you did there[3] ;-) Also, it's a shame that this kind of breach happens, but it seems like it's been a while since a "$COMPANY hacked X BTC stolen" headline was out there[1]. There seem to have been more of those in the past and they appear with less frequency, which is a good thing, I guess. [1] Silk Road doesn't count toward this recollection, since it falls under the "Bitcoin $COMPANY busted by the feds" headline, which will probably happen more often in the future.

M4v3R 13y ago
It's probably because the market for such services is slowly saturating. Entry bar is quite high, and people are not willing to use newly released services as much anymore, as it was before. So yeah, it's good that the rate is decreasing, but unless we remove the source of this (i.e. move away from "hosted Bitcoin wallets" scheme) this will still happen in the future.
chii 13y ago
i m ok with the feds stamping out crime. But i m not ok with the feds stamping out something which also has use outside of crimes. I sincerely hope bitcoin transactions aren't associated with crime, so that its popularity can grow more mainstream.
- venomsnake 13y ago
  If you have read the whole story of Silk Road they didn't busted them for bitcoins but for drug trading. And they explicitly stated there were legitimate uses. From what I have read the current Fed stance is - if you think BitCoin is money, we are ok with that as long as you comply with all regulations.
b1z 13y ago
You're right. I think the last few big online wallet breaches were Instawallet, and MyBitcoin. For anyone who wants to get their missing BTC out of inputs.io (who doesn't), I've written a blog post here: http://bitcoinreviewer.com/inputs-io-hacked-refund/ http://bitcoinreviewer.com/inputs-io-hacked-refund/

joelrunyon 13y ago

> I know this doesn't mean much, but I'm sorry, and saying that I'm very sad that this happened is an understatement. Um....I don't see how anyone is okay with this answer.

akinder 13y ago
Because bitcoin! Way of the future man! No thanks, I'll stick with insured deposits. Imagine if your bank called you up and said "Your money is gone, but we're reeeeeally sorry."
- radisb 13y ago
  Actually this happened in Cyprus very recently...

deleted 13y ago

[deleted]

tempestn 13y ago
Meh, he provided a bunch of useful and relevant info, and subtly (but not misleadingly) plugged his business. I don't mind.
- deleted 13y ago
  [deleted]
- tempestn 13y ago
  I wish the [Deleted] thing didn't blend in so well with the post above. Always ends up confusing me for a second.
M4v3R 13y ago
What's wrong with posting an alternative solution to the problem? If someone else developed this kind of service, I would post it here instead, because I'm in Bitcoin from 2011 and I believe it will succeed. Unfortunately no one to date did this yet, that's why we come in.
- deleted 13y ago
  [deleted]

grey-area 13y ago

What sort of server is Bitalo hosted on?

smoyer 13y ago

When you're hacked, I hope someone posts a self-serving expose here.

artiface 13y ago

Interesting I had missed where he claimed the hack occurred 10-26. Because he pointed[1] to this transaction https://blockchain.info/tx/9536feebe3a50b94f85ca27d56e669a7209bd4188385d55c5b97227c95cf7f74 https://blockchain.info/tx/9536feebe3a50b94f85ca27d56e669a72... as the blockchain evidence. That transaction was on 10-23 [1] https://bitcointalk.org/index.php?topic=248803.msg3509247#msg3509247 https://bitcointalk.org/index.php?topic=248803.msg3509247#ms...