BitFloor Joins List of Compromised BitCoin Exchanges

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Pigeon
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Joined: Thu Mar 31, 2011 3:00 pm

BitFloor Joins List of Compromised BitCoin Exchanges

Post by Pigeon » Thu Sep 06, 2012 3:27 am

Guess the government won't be bailing out this guy...

An attacker managed to access an unencrypted backup of wallet keys and steal 24,000 BTC (worth more than a quarter million USD), following which Bitcoin exchange Bitfloor has been shut down while the investigation of the theft is going on. The attack was carried out sometime last night. In a forum post, Shtylman pleads with Bitcoin users that BitFloor needs their help.

Link

Last night, a few of our servers were compromised. As a result, the attacker gained accesses to an unencrypted backup of the wallet keys (the actual keys live in an encrypted area). Using these keys they were able to transfer the coins. This attack took the vast majority of the coins BitFloor was holding on hand. As a result, I have paused all exchange operations. Even tho only a small majority of the coins are ever in use at any time, I felt it inappropriate to continue operating not having the capability to cover all account balances for BTC at the time.

Due to the serious nature of what has happened I am currently evaluating options for BitFloor. One of the last things I want to happen is for BitFloor to shutdown and cause more panic in the bitcoin community. The platform itself is very valuable and provides an important and friendly service to many users.
BitFloor is very much focused on the end user and creating a reliable and trusted platform for everyone. Through exchange user support, I can continue to operate BitFloor. I believe that posting the exchange source and being even more transparent about operations would be a step in this direction if we were to continue operating. BitFloor is currently the #4 USD exchange and #1 in the US.

As a last resort, I will be forced to fully shut BitFloor down and initiate account repayment using current available funds. I still have all of the logs for accounts, trades, transfers. I know exactly how much each user currently has in their account for both USD and BTC. No records were lost in this attack.


Link to Bitcoin forum


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Royal
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Joined: Mon Apr 11, 2011 5:55 pm

Re: BitFloor Joins List of Compromised BitCoin Exchanges

Post by Royal » Thu Sep 06, 2012 4:41 am

Are the coins identifiable in the exchange system? Would there be a way to render them unusable?


If bitcoins are stolen how well is U.S.D. doing online?


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Pigeon
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Re: BitFloor Joins List of Compromised BitCoin Exchanges

Post by Pigeon » Thu Sep 06, 2012 1:55 pm

Royal wrote:Are the coins identifiable in the exchange system? Would there be a way to render them unusable?


If bitcoins are stolen how well is U.S.D. doing online?
They could be seen, but controlled?

Check out some of the talk Here

Seems some people are so much into a hand offs system that stealing and selling coins might be a fact of life.

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Royal
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Joined: Mon Apr 11, 2011 5:55 pm

Re: BitFloor Joins List of Compromised BitCoin Exchanges

Post by Royal » Thu Sep 06, 2012 8:19 pm

Bitcoin brings about mixed feelings. At one hand I feel this is the beginning of something big (like the "Internet" ) because of it's growth potential in world markets. On the other, I'm weary of it's dependence on software and the (invisible) landscape of the internet. It will be interesting to hear the latest developments from the Bitcoin conference on September 15-16.

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Pigeon
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Re: BitFloor Joins List of Compromised BitCoin Exchanges

Post by Pigeon » Fri Sep 07, 2012 1:46 am

I think the peer to peer design will be it undoing. It will be come a monopoly of a few. Hence mining pools and high end processors.

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