01 April 2015

Bitcoin exchange loses $90,000 in virtual currency hack

14 May 2012  |  7998 views  |  0 20 pound note

Bitcoin exchange Bitcoinica has shut down its operations after an online hacker breached its defences and stole $90,000 worth of the virtual currency.

The security breach occurred late last week, forcing Bitoinica off air as it scrambled to assess the damage.

In a statement, the firm says that the thief made off with 18,547 bitcoins from its deposits. "The overwhelming majority of our bitcoin deposits were not stolen," the statement continues. "The thief stole from us not you. All withdrawal requests will be honoured."

Nonetheless, the exchange operator is warning that the attacker may have made off with customer usernames, e-mails and account history, and urges users to change their passwords and be wary of suspicious e-mails sent to their Bitcoinica accounts.

The breach is the latest in a series of pitfalls to have befallen the peer-to-peer virtual currency. The value of Bitcoin plummeted in June last year after an account at MT. Gox was compromised and a large amount of coins sold off. And earlier this year, e-wallet provider Paxum ceased all business involving the virtual currency after coming under pressure from MasterCard and banks, and major exchange TradeHill shut down.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

07 March, 2012
20 February, 2012
21 October, 2011
22 August, 2011
27 July, 2011
05 July, 2011
20 June, 2011
09 June, 2011

Top topics

Most viewed Most shared
Europe sets the pace as fintech investment...
6380 views comments | 29 tweets | 20 linkedin
UK online banking fraud losses soar 48%
5876 views comments | 16 tweets | 19 linkedin
Future Money Focus: Mariano Belinky, Santa...
5514 views comments | 12 tweets | 12 linkedin
Google preps Gmail bill payment feature
5165 views comments | 15 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
4997 views comments | 10 tweets | 11 linkedin

Featured job

Competitive Package
London or Frankfurt

Find your next job