Hackers infiltrate wallet service and get away with 4,100 Bitcoins worth $1.18 million

By on November 8, 2013, 3:30 PM
hacking, bitcoin, theft, bitcoins, wallet service, inputs.io

An Australian entrepreneur going only by the name TradeFortress responsible for running Bitcoin wallet service Inputs.io claims two hackers recently infiltrated the website and stole roughly 4,100 Bitcoins, or about $1.18 million based on current conversion rates.

The site claimed to be the most secure wallet ever created and boasts some 20 different security measures including SSL encryption, location-based authentication, bcrypted passwords and a cold storage system. These measures, however, were seemingly not enough as the site was broken in to on October 26 according to the young owner.

A message left on the website said the attackers compromised the hosting account through compromising old e-mail accounts without phone numbers attached to them. This made the accounts easy to reset, we’re told.

The person behind the site said they were able to recover some of the Bitcoins but not all of them. As such, customers are eligible for a partial refund that will take place on a sliding scale. Unfortunately, not much else can be done. 

Created in 2008 and valued at around $0.20 in 2010, Bitcoins are now valued at nearly $330 each. In the event you bought in early and often, you’d probably be a millionaire multiple times over at this point. But as the value of Bitcoin continues to skyrocket, the virtual currency is becoming a more lucrative target by the day.

One of the biggest problems today is deciding where to store them and keep thieves away. Perhaps the best bet is to keep your Bitcoin address offline complete, say by writing it down on a piece of paper so nobody in the digital world can access it.




User Comments: 9

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cliffordcooley cliffordcooley, TechSpot Paladin, said:

Who was it described Bitcoins as a secure currency?

It amuses me to finally see hackers prove bitcoins are not as secure as we are being lead to believe.

RzmmDX said:

Who was it described Bitcoins as a secure currency?

It amuses me to finally see hackers prove bitcoins are not as secure as we are being lead to believe.

I thought that the constant hash checks for transactions or mining would provide some authentication to prevent this?

If not then why does it take so long to create bitcoins...

cliffordcooley cliffordcooley, TechSpot Paladin, said:

From what I gather secure storage of bitcoins is not the same thing as secure transaction. The way it was explained to me is the machines that do all the processing are those that process the transactions. Multiple machines doing the same transactions, and the first one to finish passing the security measures is the one that gets credit (a small commission from the transaction) for the work. But if someone could hack into a bitcoin wallet, they could transfer bitcoins anywhere else as they would have control of the contents of the wallet.

Bigcabrito Bigcabrito said:

It's an online wallet. You can take precautionary measures to avoid getting your wallet stolen. Instead of trusting your hard earned cash to online wallet, keep them yourself. If you have no idea how to do it, learn and adapt. Personally, at this point in Bitcoin, online wallets are not all that secure. You have no contro

1 person liked this | Bigcabrito Bigcabrito said:

You have no control of your money if you keep it in an online wallet. These sites are not like the common banks we use nowadays.

NTAPRO NTAPRO said:

Created in 2008 and valued at around $0.20 in 2010, Bitcoins are now valued at nearly $330 each. In the event you bought in early and often, you?d probably be a millionaire multiple times over at this point.

That sucks so damn much lol

JohnAus said:

I like this bit comment from end of article<> " the best bet is to keep your Bitcoin address offline complete, say by writing it down on a piece of paper so nobody in the digital world can access it."

Paper is your friend and very ancient technology...Ouch!

I dont believe it!!!

Jim$ter said:

Bitcoins were not hacked nor were they ever...LOL They are super secure. Where you store your bitcoins are what can be hacked. There are super safe ways to store your bitcoins. They are usually offline the same way you could store your money buried in the yard you could do the same with your bitcoins on a flash drive or as a piece of paper. Blockchain is a safer on-line wallet as the private keys are never stored on the site. You retain those keys and you you can save them to paper or encrypt them to a flash drive or whatever you want. So if the site goes down or away you still have your bitcoins. Coinbase is a online wallet similar inputs.io but they are based in the US and as such couldn't get away by saying oh too bad we last all your money..Coinbase is the best way to buy bitcoins currently in the US. Bitcoins could go to 1 million or drop down to $0. All I know is they have been going up over 5% a day

Skidmarksdeluxe Skidmarksdeluxe said:

Not bad pay for a couple of hours work.

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