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796 lost 1000 bitcoin when dealing with customer withdrawal request, paid with shareholder's interest.
More http://8btc.com/thread-13689-1-1.html

What does this mean? A little lost here

After translation from google, seems that a Chinese exchange called 796 was hacked out of 1,000 BTC, by hackers switching the deposit (or withdrawal) address.. or something to that effect.

"... after detailed analysis of various logs and audit records, we found the system to update a few days ago the existence of sub-module exploited by hackers, causing the user to mention the current address has been tampered with, coupled with hackers deliberately used a similar address with the original withdrawals address to confuse users and our manual review."

Here is the google translation link I used.
https://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2F8btc.com%2Fthread-13689-1-1.html&sandbox=1 (https://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2F8btc.com%2Fthread-13689-1-1.html&sandbox=1)

Thanks mate
That's pretty shocking if true, surprised that Coindesk hasn't picked this up yet

Thanks i remember never using 796 but that it is the only other exchange besides havelock to have had any Asicminer shares for trading after Btct and bitfunder shut down.

It's strange though I don't see it on 796 as a news bulletin but it was on weibo so thanks for the note


Language barrier it's a Chinese exchange they will catch it soon enough I bet.

We have been tracking the progress. Hacker replaced the customer's withdrawal address with his own address. 796 will compensate the customer with shareholder's interest.

With shareholder's interest eh.

How many years would that take?

Sure this "hack" wasn't an inside job?

796 is futures trade site.
Most people there are just gamblers, speculating at 20x or even 50x original rate.

It has caused suspicious problems. In weibo (Chinese version of Twitter), some has argued it might be the user himself who did the job.

Found out about this site for the first time a few days ago, it was becoming quite popular with traders.  Seems hard to believe all these hacks.... i mean 1k bitcoins gone wtf ? hope you guys dont have funds on the site.

That i would believe.

That's probably gonna cripple the exchange.  :o
Why exactly 1000 bitcoins though?  :P

Inside job of course

When the f*ck will people learn, and stop keeping large amounts of money at exchanges. Especially shitty, small, non-transparent, obscure, unproven, or lacking-solid-reputation ones.

The only two exchanges I would currently trust my money with, are Kraken and Bitstamp. And then still, why the hell would I be keeping my money there if it's much safer in my own wallet.

Get this, people: EXCHANGES ARE NOT BANKS OR SAVING ACCOUNTS!

I've never know the existen of 796.com until today , I was lucky :/.  An hack attack  ???

Hack attack, Basically it is. Someone hacked the system and changed the withdrawal address of the customers.

But then.... How does the hacker know the person who he switched his cashout address with has so many coins in his account?

A know what is an hack attack  :D , my [???] it was for the security of the various sites/exchanges .

Huh? What does that mean  :D

Quite disappointing it took them this long to notice it, did they just think nobody was making deposits anymore?

I'd be happy with the Coinbase Exchange as they will actually be insured. 

Also, it looks like a new player is coming on the market for exchanges.  It is not a "decentralized" exchange, but it is getting closer.  All the coins are held in multisig with the exchange only having one key.  This solves the hack problem and the Gox problem.  They can't run with your coins even if they want. 

I'd really like to see other exchanges implement this tech if it turns out to be solid. 

So far the two best solutions I have seen are these two.  Either have all the coins insured, or don't actually have the keys to them. 

Good thing some solutions are coming that provide a little higher rate of trust.

Anndd another one bites the dust. I really hope Coinbase and Gemini dont suffer from this otherwise its game over.

No kidding. If the they fall, we're toast

It might as well be an advertisement by 796, as many have pointed out in QQ (most popular IM App in China) group chat today.
Investers also accused why 796 did not disclose more detailed info.
We should keep tracking this event.

If true, they still made close to 1k on fees this month. So it will not be that big of a deal. For such an unknow exchange they are quite big

Agreed, although Coinbase is not available for the majority of the world. I believe they operate in just one country.. sounds pretty centralized / limited / restricted to me. But at least getting licensed is a good start.

I also have high hopes for a fully decentralized P2P exchange system. Although I think it will take at least another year before we got that up & running.

Thank god Coinbase is bringing in some trust.

According to this it was hackers switching the withdrawal/deposit addresses on the site. So they couldn't control how much Bitcoin was sent to the "hacker's" wallet. Regardless, I doubt it was some hacker. Logically speaking, why would a hacker gain so much to a site just to switch the withdrawal address. Doesn't make sense to not just steal the BTC from the hot wallet of the exchange when a change in deposit/withdrawal addresses could easily be found and fixed (or so I thought).

Coinbase actually operates now in 19 countries!  Although that is just an instant buy/sell option.  Basically it is in the US and Europe. 

In the US it is only an "exchange" in half of the states (unfortunately not mine).  But we can be assured that they are looking to get licenses and regulated in many more countries to come, as well as expanding to many more countries to com. 

Also, earlier I wrote about an exchange that has all coins in multi-sig with the client having the keys so these hacks can't happen but I forgot the link. https://www.cryptocoinsnews.com/multisignia-bitcoin-market-exclusively-using-multi-signature-wallets/

It isn't decentralized, but it is a whole lot better than exchanges operating on fractional reserves or Goxxing us.   

Jesus, not good. I feel for those affected. Having things stolen from you is never any fun. Hopefully they can recover from the loss, and also increase OpSec.

Most things hailing from China are quite massive when compared to our western services ;D

thats bad. you should store your BTC on a hardware-wallet instead of a shady chinese exchange:

https://bitcointalk.org/index.php?topic=899253.0

seems the site is down now.  wonder if it will come back? 

Hardly their profits are public they're earning like 600 btc a month.

I don't think losing one months of profit would force them to shut them down as 600 BTC is a significant amount for any kind of business.

As mentioned above it looks like that 796 offers very high leverage so people probably had money in the exchange in order to speculate as to where the price is going in the future.

I don't think most of their customers were using it as a bank account but rather more like a brokerage account.

Atleast someone (HAckers) are being attracted to bitcoins !
not funny though  :-X
THese exchanges are going down slowly

I am currently unable to withdraw from 796

I Think this is not a little lost this a a lot of money to
we cant say this a little amount

their cold wallet remains in tact I checked it today

1000 coins are not too big deal for 796.
They've profited enough to cover this lost, even if the incident was true as announced.

Do you have anything to back this up? My understanding is that 796 is not that large of an exchange which would imply that a 1,000 BTC loss would result in a large (probably >100%) percentage of their equity.

796 covered the lost itself and the problem seems to be dealt.

Yes, 1000 is a big amount but not really big for an exchange. 796 is the largest futures exchange in China with a lot of income from trading fee, they're rich enough to cover the lost.

Most Chinese exchanges do not have any trading fees. AFAIK it is not known how they actually make their money, although some speculate they make it via interest on margin trades, however I don't think this would be sufficient to cover all their expenses (plus the 1k loss)

Futures trading in Chinese exchanges is not without fee. In fact it is where the core profit comes from.
As BTCChina recently announced they'll provide futures trading, now almost all exchanges in China (try to survive and) make profit from that.

innocent93 was right. 796 is ranked top 2 (if not top 1) exchange for futures exchange in China, and it does exactly only that business.
And they are not distributing profits to stakeholders just to cover incidents like this time.
So I think 1000 coins lost can still be ok for 796.

I always assume it was an inside job unless proven otherwise,cant trust these exchanges,I even took mine out of coinbase. I don't care about what they tell me about them having insurance and having the best security blah blah blah suck a horses dick. That is exactly what Mt Gox said before they went MIA.

and no offense guys but if you are still like how I was 2 months ago you need to get it together,take your coin out of these exchanges and store them into a paper wallet. Purchase a new computer and run bitaddress on it not connected to the internet,when you are done,burn the laptop. I used a little 300 dollar laptop if you have as much coin as I do you don't mind throwing 300 to save 30000.

Really hope so too

What fees do they charge for futures trading? Is it a similar to how exchanges charge a trading fee when BTC is traded? or is it some other fee structure?

It is news to me that Chinese exchanges are charging a fee

Considering the profit the site has made..they should be able to reimburse the users that lost their btc due to the hackers. But wow it took them so long to find that out and then announce it...meh...

Surprised i haven't seen this story on any of the coin news site, eg. Coindesk always love running a good hack story.

No, 796 didn't pay interest.

More drama in the bitcoin world!

You never know in cases like this, if the exchange was really hacked/stolen by a third party or if we are talking about a yet another inside job covered with the excuse of a security flaw. Cant wait for the Gemini exchange to arrive to move all of my shit over there.

Even better: get yourself a Ledger Wallet nano https://gatecoin.com/ledger
You will be glad you did! It's a small price to pay for your peace of mind when it comes to securing your coins!

You can buy it online or save shipping cost by buying it in-store from our office in Wan Chai, Hong Kong.

I don't understand Chinese, but one thing I know is that some of them have japanese anime character profile picture. :D :D :D

It's nothing; only 1/10th of a pizza.

https://i.imgur.com/dj3hTpA.gif

isn't all (hacking) in any bitcoin exchange seem suspicious? 

this just sounds like this too me, " well we lost X amount of bitcoins But! we will for pay out of our pocket in time but charge you a small higher fee for every BUY,SELL transaction to pay back all your bitcoin.

when it might look like this we needed that bitcoin, because well it was there and easy to take and blame it on a hack and promise to pay back. MTGOX any one?

with so much bitcoin on these exchanges you would think they can control the hacks but I guess not.

BITCOIN LOST FOR EVER!

Yeah, it seems very suspicious. You'd think with all the news of hacking going on, exchanges would focus more on security at this point.

Seems like an inside job. That's a lot of coins! I had never heard of this exchange and they are handling that many coins??

Its a weird name BTW. What does it imply?