Secretive Internet currency’s server hacked; money stolen - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Secretive Internet currency’s server hacked; money stolen
Started:May 14th, 2012 (06:31 PM) by kbit Views / Replies:217 / 0
Last Reply:May 14th, 2012 (06:31 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Secretive Internet currency’s server hacked; money stolen

Old May 14th, 2012, 06:31 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Secretive Internet currency’s server hacked; money stolen

Upwards of $90,000 worth of Bitcoins have been stolen from an exchange service website this week, marking the second time in nearly two months that the cyber-currency has been compromised due to a security breach.

The administrators of Bitcoinica, a website that allows Bitcoin holders to trade in their e-currency for a value in US dollars, say that an attacker infiltrated their servers on May 11 and depleted the company’s online wallet of 18,547 virtual currency coins — worth roughly $87,000 USD. As a result, the website has suspended their transaction service while they open up an investigation to try to identify who broke into their servers and how the breach was accomplished.

Upon noticing a series of unusual transactions, the website’s owners say they shut down their servers and locked down accounts as a precaution, but assured its users that their “trading and financial data is safe (as far as I know), apart from the Bitcoin loss.” In an address added to the main page of later on, however, the administrators note that other information stored on their database was “most likely compromised,” but add that only currency owned by the site itself was stolen and that the money of most of its users was presumably safe because personal user information is encrypted separately from the actual currency.

“We will have more to say soon about the circumstances surrounding this attack and what we will do to handle it,” continues the site.

According to the website, there are roughly 9 million Bitcoins currently in circulation. The crypto-currency Bitcoin was revealed in 2009 by an anonymous programmer and has been used in online transactions since, particularly in incidents where consumers and retailers are more likely to favor anonymity in their online purchases across international borders. Bitcoins are created through a predetermined computer algorithm, and fluctuates in value just like traditional currency.

Although Bitcoins have become increasingly popular because they can be used to purchase goods and services when other currency is not feasible, some skeptics have condemned the system for poor security practices. Only ten weeks before the latest breach, hackers infiltrated the e-wallets of Bitcoin customers hosted on cloud-hosting provider Linode and managed to apprehend over 46,703 BTC (almost $228,845 USD worth)

"It certainly needs to work on its security,” DVICE writer Evan Dashevsky explained last year when discussing the currency.

Others have come out to attack the currency, but not because of security concerns. Earlier this month internal documents from the US Federal Bureau of Investigation were leaked in which FBI authorities express concern over Bitcoins because of the difficulty to track down its users.

“If Bitcoin stabilizes and grows in popularity, it will become an increasingly useful tool for various illegal activities beyond the cyber realm,” the FBI warns in the report. “Bitcoin might logically attract money launderers, human traffickers, terrorists, and other criminals who avoid traditional financial systems by using the Internet to conduct global monetary transfers.”

Other users of Bitcoin, of course, are hacktivists who ask for donations on the Web and law-abiding Internet users who are weary of the current international economy.

The FBI estimates that the amount of Bitcoins in circulation put the worth of the currency’s economy at around $44 million.

Secretive Internet currency?s server hacked; money stolen — RT

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Secretive Internet currency’s server hacked; money stolen

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01% kbit News and Current Events 0 May 27th, 2011 11:20 AM
LA Times: "Foreign currency trading is easy — an easy way to lose money" shodson News and Current Events 7 April 4th, 2011 09:20 AM
A Secretive Banking Elite Rules Trading in Derivatives Quick Summary News and Current Events 0 December 12th, 2010 09:20 AM

All times are GMT -4. The time now is 08:31 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-24 in 0.08 seconds with 20 queries on phoenix via your IP