BitFloor breached, hacker makes off with $250,000 in BitCoins

By Leeky
Sep 5, 2012
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  1. The future of BitFloor, the largest BitCoin exchange in the United States is uncertain after its founder announced yesterday that the company has suspended operations due to hackers compromising its server and making off with 24,000 BitCoins...

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  2. Rasta211

    Rasta211 TS Booster Posts: 209   +30

  3. Wendig0

    Wendig0 TechSpot Paladin Posts: 1,101   +95

    Lol bitcoins
  4. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,258

    Sounds legit
    Lol indeed. As Kirk Lazarus would say..."Everybody knows you never go full virtual currency"
  5. Jawshh

    Jawshh TS Enthusiast Posts: 392

    Storing wallet keys on unencrypted storage is just like storing credit card information on unencrypted storage, so, this is basically a honeypot for hackers.

    Just imagine if Paypal did the same thing with your credit cards. Don't think they'd be around for too long.

    Sure, you'd be able to get your money back with credit cards but there'd still be a ton of costs involved.

    Rule No 1: Always protect from prying eyes.

    So, there's nothing wrong with Bitcoin, it's a very good hassle-free way to transfer currency as long as you do it right.
  6. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,258

    Which is why banks, credit institutions and PayPal tend to take security a more seriously
    Linode's servers got hacked in March- Bitcoinica gets smacked. You'd think that would be a wake up call, no? Guess whose servers BitFloor use?......yup...Linode.
    Obviously, some of the big exchanges aren't "doing it right", not really the way to instill confidence I would have thought. And as you mentioned, you've got a chance to get your cash back at a bank/Paypal etc. The only chance these bitcoiners have of recouping their losses, is if an investor is willing to put up funds to cover those losses- which brings us back to the confidence issue.
  7. Tygerstrike

    Tygerstrike TS Enthusiast Posts: 827   +93

    Its a start up company. They arent to the level of exchanges yet that would normally nessatate that level of security. They only make 2k a month. So yea I can see where a minor mistake would cause this. They dont have the nessasary experience that the bigger banking firms have. I hope the theft in general was just to show the weaknesses in that website and the hacker will be giving those coins back. However, im not so niaeve as to think they will do it. I feel it kinda sucks for the owner of this internet business. Get started and get some word of mouth/web advertising just to have some simple jackhat hack in and steal from them. Maybe a church would be a better target for the hacker. Atleast God would forgive that, or so Im told.
  8. Blue Falcon

    Blue Falcon TS Addict Posts: 161   +51

    It's pretty funny people are laughing at bitcoins. It's a pretty cool idea even if long-term it doesn't work. At the very least it has guaranteed free AMD gpu upgrades over the last 2.5+ years. It's pretty nice to have free 7970 cards and then start building up more $ for HD8900 series without spending a dime! Until Bitcoin stops working for GPUs, it's an awesome AMD feature. Can't beat price/performance = 0.
  9. Wendig0

    Wendig0 TechSpot Paladin Posts: 1,101   +95

    Ask Roman Shtylman, 2012, Bitcoins, remember? Went full virtual currency, went home empty handed...

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