BITCOIN Bank HACKED! $1.1 MILLION worth of CYBER-CURRENCY Stolen! - Still safer than FED notes
Subscribe here for more Prime Interest, Max Keiser & Financial news:
An Australian bitcoin bank holding over US$1 million of the crypto-currency has been hacked, leaving an unknown number of users with nothing -- one of the largest thefts in the currency's four-year history.
The incident took place on October 26, when the bank was hacked, with 4,100 bitcoins valued at $1.3 million stolen, the service's operator only known as 'Tradefortress' said. He refused to give his name to the press, also stressing he was not much older than 18.
It took the bank's owner two weeks to notify the affected customers.
Bitcoin is a decentralized, crypto-currency, free from any government or central bank control. Currency is sold and bought at online exchanges, and those transactions can be virtually anonymous.
One bitcoin is currently worth more than $300 on Mt. Gox, the world's largest bitcoin exchange - up from around $50 in March. There are 11,925,700 million bitcoins in circulation.
The Sydney man offered the service called Inputs.io, which he claimed was "one of the most secure web wallets on the market." Customers were charged a small fee to keep their bitcoins there.
The site used two-factor authentication and location-based email confirmation, and said the page was started to avert "the hack of bitcoins even if the web server was compromised."
Some of the hacked money is to be refunded, the operator told Fairfax Media. Tradefortress said he would use 1,000 of his own bitcoins, as well as the money the hackers didn't steal.
"Users are being repaid up to 100 percent depending on the amount (sliding scale), generally 40-75 percent," Tradefortress said.
The operator indicated the attack was possible due to "a flaw" in the system which allowed the hackers to bypass the protection.
Currently, there's a sad face emoticon posted online and a notice that reads "I know this doesn't mean much, but I'm sorry, and saying that I'm very sad that this happened is an understatement."
commodity, price, inflation, forex, currency, trading, currency trading, euro, converter, exchange, euros, money, currency rate, currency converters, money, rate, credit, credit consolidation, capital, card credit, creditcard, debit, how do i get a credit report, credit history, report, debit card, credit rating, investment, investment, free credit report, credit line, mortgage, financial, news, cibc. mortgage rates, obama, mortgage relief, mortgage protection, stock exchange, what is apr, online gold trading, forex, gold, gold trade, trade gold, gold mine, price of silver, gold future, gold funds, keiser, max kaiser, forex investment, investment, forex online, investment account, bank, how to, investment funds, bonds, savings, investments, invest, mutual fund, commodities, hedge fund, investment banking, property investment, investment banks. finance yahoo, how to finance your money, finance 101, finance 101 wharton, finance 101 lecture, finance 1, personal finance 101, finance 240 sdsu, finance 201, finance 2014, finance 2, bitcoin finance 2014, finance 301, finance 5 program, finance 5, american economy animation, american economy collapse, american economy collapse 2014, when will american economy collapse, american economy documentary, american economy explained, american economy history, american economy may 2014, american economy shrinks, american economy today, how the american economy works, american economy 1950s, american economy 2014, global economy animation, global economic collapse, global economy documentary, global economy explained, global economy journal, global economy kagundu, global economy mean, global economy news, global economy outlook, global economy pdf, global economy ryan harvey, global economy reset, how does the global economy work, global economy zimmer, global economy 2014,