BitFloor and Bitcoinica Refunds Showing Signs of Progress
BitFloor and Bitcoinica Refunds Showing Signs of Progress. The Bitcoin exchange platforms BitFloor and Bitcoinica, the two largest institutional victims ofdigital theft in Bitcoin history, have finally shown their first signs of genuine progress toward repaying their clients. On October 31, a court filing made by Tihan Sealein August to place Bitcoinica....
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Bitfloor, the fourth largest exchange dealing in US dollars, has just announced[1]that it has been hacked, and the service has taken a loss of 24,000 BTC, worth about $250,000 at the time of the theft. As Roman Shtylman, the founder of Bitfloor, describes it, "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,....
As was previously reported, Bitcoinica was shut down on May 11th, 2012 as a result of a hackerstealing 18,547 BTC (then worth about $92,500) from the service's hot wallet. Two months later, while the service was in the midst of rebuilding user data to issue refunds, a malicious entity was able to gain access to Bitcoinica's MtGox account and withdraw 40,000 BTC (then worth about $310,000) and $40,000 USD. After Zhou Tong, the creator of the service, sold Bitcoinica to Wendon Group, the Bitcoin Consultancy was hired to be responsible for maintaining the service. Once the service was shut....
Bitcoinica site as it looked in 2011. Grabbed from Wayback Machine. Did Bitcoinica founder Zhou Tong steal funds, return a part of them, then pay someone to keep it quiet? Well that would seem to be the impression created by the latest revelation contained in a Youtube video discussed on Reddit. Bitcoinica - Some Background. Zhou Tong founded Bitcoinica in 2011 at the age of 17. Bitcoinica was an online trading company that enabled users to speculate on contract-for-difference market against the Bitcoin to USD exchange rate. In March 2012, Bitcoinica reported that they had lost 43,554 BTC....
The fourth largest Bitcoin exchange in the world, BitFloor, has announced that it is closing its doors, and will soon be refunding deposits to customers. The announcement has nothing to do with recent technical problems that all exchanges have been facing for the past week to due the sudden massive increase in trade volume; rather, the root cause behind the shutdown is the closure of BitFloor's US bank account. Founder Roman Shtylman writes: I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. Unfortunately, our US....
The last few days have unfortunately brought one piece of grim news after another to the Bitcoin community. As if the 43000 BTC Linode theft in March was not enough, another 18457 BTC was stolen from Bitcoinica's reserves, and Zhou Tong was barely able to prevent the thief from getting his hands on 30000 more. Unfortunately, given the financial stress that Bitcoinica was already in after the Linode theft two months ago, even this smaller loss turned out to be the straw that broke the camel's back. The site was immediately shut down for security reasons, and less than one day later Zhou....