Another Digital Currency Heist Steals $70,000 From Exchange

Hackers got away with 1.5 million coins

Satoshi Nakamoto, creator of Bitcoin, is said to have an estimated $400 million worth of the virtual currency.

Another day, another Bitcoin heist. This time, a spinoff of the currency was attacked by thieves who made off with a lot of virtual cash.

BlackCoin, a variant of the highly popular Bitcoin digital currency, has run into a bit of trouble this week. About 1.5 million coins were stolen after hackers tampered with a glitch at currency exchange company Crypto Rush.

The hack involved temporarily inflating the amount of coins available in accounts by about 22 million, then withdrawing the coins from the exchange.

The withdrawn amount of over 1 million coins totaled to about $70,000, or 120 bitcoins. The exchange company, Crytpo Rush, is trying to figure out how to pay its users back after the theft.

“Once again we apologize for our own issues with both downtime and late upgrades of the client,” a representative of Crypto Rush said in a forum post. “We’ll post more when we know how we can pay back affected users or get some compensation for this massive, massive loss. 100 BTC doesn’t just come out of thin air, so please be patient while we make this right.”

It seems as though every week a new Bitcoin theft occurs, bringing up the question: how secure is this form of digital currency? And when will another exchange shut down due to theft?

  • Steve Garland

    Its the exchange, not the currency. Other exchanges do not have this problem.

  • Steve Garland

    Sites like Vault of Satoshi do not have any such exploitable flaws and have not fallen to a single DDOS attack. Nor will they, because they designed there site properly from the ground up.

  • Steve Garland

    FYI, I’m one of the people who lost money on Crypto Rush. And, I sincerely regret ever using it.

  • Steve Garland

    As slow as Cryptsy has been at times, I would trust it a million times over compared to these dinky little exchanges like Crypto Rush.
    Also, its a lesson learned from everyone in the digital currency world. Exchanges are not banks, DO NOT leave your money in them for any lengthy given amount of time.

  • Steve Garland

    That is what digital wallets are for. You are your own banker.