Bitcoin Forum

Kipcoin is a China-based bitcoin wallet service that started operation around May 2014, featuring interest return around 1.x% per month. Their operation expanded to fiat trade and later futures (bcoin.com).
Earlier today, the Chinese Lunar New Years Eve, they released a statement saying that their wallet server had been hacked and lost of over 3,000 btc. Kipcoin.com is now shutdown.

More: http://8btc.com/thread-14319-1-1.html
Warning of ponzi scheme: http://8btc.com/thread-13432-1-1.html

Looks like 2015 is going to be the year of hacks...

Wow another hack, much surprise.

not really a hack if its a ponzi..  ppl gotta be careful

I had never heard of Kipcoin. It cannot have been big because I never noticed it on the Bitcoinity Chinese markets. 3k is a fair amount of coins but nothing like the amount Bitstamp and Bter lost.

Its the final scam hacks to try and get the market to dump before the big pump.

What the hell .
Like seriously , They are going down one by one and all of them from China . I would say it's basically an inside job or from goverment, It's the best way to find execuses then ban Bitcoin in China once for all .

~ Madness

DO NOT HOLD YOUR BTC ON THIRD PARTY EXCHANGES – BE YOUR OWN BANK

https://bitcointalk.org/index.php?topic=945881.0

wow too much hacker :(

I fear a negative impact in 2105  :'(

"Online wallet"... "wallet service"... why it's almost as if some people don't understand what Bitcoin is about.

(or, what gbianchi said)

What a surprise, I guess someone needed the pocket money for a new mansion in Dubai from the management.

Isn't it ponzi scheme & the owner run away with customers bitcoin ?
But, why always china ? Just like BTER :(

Another one? Mere coincidence. Or hacker has found a way to exploit loopholes in exchangers.

Is this another centralized service that users are willingly trusting their private keys to?

Not saying it's right that they lose their stash, but I mean COME ON MAN!!!

If you leave your keys in the hands of the 3rd party centralized entity with no laws or recourse in place, you kinda deserve whatever happens...

Promising 1.x%/month return is definitely a red flag.

But what I wonder is since they offered fiat/BTC trade, the owners must have been known and not anonymous, therefore can they be prosecuted in China for fraud? Or can they just claimed to be "hacked" and close the business without any liability?


Some people need to learn the hard way, and some will never learn...

Can't believe people are still using online wallets to store btc...

Any service offering interest on btc deposits should be treated with caution.

It's kinda why I don't mind the Bitlicense, regulation, and AML/KYC coming to Bitcoin exchanges even though some of it goes against the tenets of what Bitcoin stands for.

At this point, scammers, hackers, ponzis, and bad actors/players continue to tarnish whatever good will and potential Bitcoin provides.  Not that there isn't in Fiat based economies, but could you imagine if the NYSE or NASDAQ ever got hacked.  There'd be blood on the streets, and alot of people would be unemployed.  I mean even after the Target or JP Morgan Chase hacks, there's recourse, and all funds are pretty much insured at least.  No such recourse with Bitcoin exchanges or wallet services yet...

Probably too soon to be able to reach firm conclusions, but as time passes I'd like to see someone research all the reported "hacked exchanges/online wallets/etc." and identify the root causes of the hacks. Is it malware/remote intrusion? Or inside jobs by employees? Or the owner of the exchange/business taking the funds and running? I suspect the 2nd cause (inside jobs by non-owners) may be the principal cause of theft.

Bitcoin businesses need to develop very robust security protocols before they even think about crafting their systems and opening for business. If they have any flaws or loopholes they WILL be found and exploited. Count on it. And that includes by insiders as well as outsiders to the organization.

Of course, traditional fiat businesses are facing the same situation, but there is a lot less transparency about their losses and failures.

Another hack, I am shocked ::)

When will they learn not to keep BTC online.

The only wallet i use if not a cold wallet is Coinapult.

this would not have happened if they used multisig.

Someone's gonna have to do a thread summarising all the recent hacks as I only have a certain amount of time to read all the individual threads.

Bitstamp implemented multisig after the hack. And after what happened to Bter, there will be a major pressure on every exchange to do the same. And there's no really excuse not to do it.

So it seems to be a last call for any shady exchanges to "get hacked".


+1, but I'd like to see a comprehensive list with all the hacks, not just the recent ones (with short description). I'm sure there have been ~20 over the years.

to say this is useless i guess (i did it alot)  :-\

when bitcoin has a 100 billion market value, we will see even bigger scams. but there is also:

http://www.coindesk.com/security-standard-proposed-bitcoin-exchanges-wallets/

These services and exchanges are a paradise for hackers.

Why should they work if they can make millions in just a single day......

Very sad news, once again. It's quite clear that these amateurs can't run such a service.

https://bitcointalk.org/index.php?topic=956768.msg10468445#msg10468445

1% ++ monthly returns is a pretty obvious ponzi if you ask me.

4th one and only 2 months into the year.
Is there a site taking bets on who is next? :P

"Inferior companies" are getting eliminated: Welcome to the free market, please enjoy your journey.

Not a hack. Exchange owners panicking and running away with incautious people's money. Do not leave money in exchanges! wake up people.

WTF, this is very very bad. The 2015 hasn't begun in a good way, I've read that it gave an interest for keep bitcoin on the site. I hope now people will start (really) to not keep their own coins on an exchange, site, etc.... but instead in their own bitcoin wallet.

Hold your breath and stick to your money!

So lets see

Bitstamp
Mycoin
bter
kipcoin

and a bunch more.

And ponzi. Or, as someone theorized it, many exchanges are just not profitable because of BTC price. So they shutdown . The honest one say the truth, other get "hacked".

Winner: multisig implementation. Hopefully.

Vitalik Buterin on multisig (https://bitcoinmagazine.com/11108/multisig-future-bitcoin/)

Hey, i'm using online wallet ( blockchain.info ) because i'm new to Bitcoin and i don't have time, internet and pc ( 100gb ssd ) for bitcoin wallet.. that's it..

Then I suggest you to use electrum or greenAddress (a multiSig webWallet).

---

Here more articles in english language :

- http://www.cryptoarticles.com/crypto-news/chinese-exchange-platform-kipcoin-admits-to-hackers-stealing-over-3000-bitcoin
- http://www.miningpool.co.uk/chinese-exchange-kipcoin-hacked/

electrum is safe like normal wallet?

Yes. Even tho i still use qt wallet cause im paranoid as fuck.

stolen btc is the reason that price is going down..they sell the btc and investors get screwed

The bright side is that all these poorly managed incompetent exchanges get washed away. There really need to be a stronger regulation on exchanges, then i bet 80% of these exchanges wouldn't pass the test.

Exactly this, no regulation, no framework, no recourse.

It's one of the reasons, I'm actually fine with the Bitlicense and AML/KYC rules being applied to exchanges and services of the like.

Without regulation, you get the wild wild west, and bad operators just up and leave when they'd make their dime, and claim it was "hacked".

I think it is so difficult to "regulate" a crypto currency exchange, because the government should first regulate bitcoin (as cryptocurrency) and this is impossible. Because it is decentralized and not compatible with this economy system.

The unique rule I can give is : don't keep your coins on an exchange (in this case a sort of web wallet).

Actually it's not so difficult:

https://blog.gemini.com/welcome-to-gemini/

There has to be some give and take, unfortunately, and we need more exchanges like Gemini to prove to the masses that Bitcoin can be safe medium of exchange and trading.

Happened to this site as well?

Man this year is starting BAD!

That's what happens when your everyday random person with a Word certificate works as your Security Engineer.

no

Year of Ponzi

it is not in Chinese calendar but maybe it should?

This was NOT an exchange either

Hey old friend :)

I agree, in most cases, exchanges fall and have no accountability; they should be insured against heists and such, just like banks.

Even for mining, in many jurisdictions you need a prospector license for like $25 a year; slight money grab.

Only a few have exchanges actual backing... people want to genuinely trust exchanges.

New ones come up with big promises of interest and what not... they always all fail.

Alas, it will never work as long as they don't have banking-level insurance and/or backing in case of heists.

Exchanges and online wallets are the only weak spot in the entire Bitcoin infrastructure.

However, people are ultimately responsible if the exchanges or online wallet loses their coins.

No reason to leave your coin purse at the craps table at the end of the night, right?

If you do, you deserve to lose it; exchanges are not banks, they are casinos.

I can't stand having any coins of any type in an exchange and when I do send some it's not all my cache and WD as soon as my trades are done.

Knowing the wild wild west is a good way to make a killing today and protecting your coin yesterday!

It's always a good idea is also using a reputable exchange.

Remember guys keep your coins with you and do not store them anywhere else.

Agreed, Gigabuddy!   ;D

Trust is HUGE part of it when it comes money exchangers or money services.  Right now, there really isn't a trust system in place where an average Bitcoiner can leave their funds online.  

Like if I leave my funds online in say BitStamp for a couple minutes, make a couple of trades, and then before I click Withdraw, the website's down.  I check back in 5 minutes, and it's still down.  I check back in an hour, try to email Support, and it ricochets back with a Undeliverable, now I'm panicking.  There's simply no entity or authority that can insure, or refund you, or go to bat for  you.

That's why I'm most excited about Gemini launching.  Ticks all the checkboxes for me.

Yeah, I missed that detail when I made my first post. Anyone promising returns, particularly returns over 3-5% annually, is pretty much a guaranteed crook.

Well hackers have aways been here and even shitload cards with fiat get stolen every year.

Very good point and if you think about it.
Major multinational banks with tons more money to throw at security can't even keep their networks free of hackers.

Another day another scam.

Doh. They're paying interest, so OF COURSE its a ponzi!

Only an IDIOTIC exchange would store bitcoin the server where hackers can get to it. So either this exchange was:

A. Extremely stupid or
B. Scam

What do you think?

Banks are also paying interest.

If some of the profit is given out to attract more customers, it makes more profit. But yea it might be a ponzi, regardless.
Let's wait for the news.

It's just coins changing hands. I bet they kipt it all in a hot wallet. Now there's no 3000 bitcoin and no kipcoin :D

It's one of the reasons I'm not too hard on exchanges like Gemini which actively seek regulations for themselves and hope to use state approval to advertise and bring in customers fed up with losing money in the wild west.

However, this is no reason to back Bitlicense or AML/KYC rules.  As far as I understand it, the Bitlicense is not optional, a significant loss in freedom of choice and potential efficiency (the market is cut out of the process of determining efficient regulations) for no real gain in safety (I'd argue indeed a long-term loss in safety).  Furthermore, AML/KYC rules wouldn't have prevented the loss of these 3000 BTC.  All AML/KYC would have done here is cause hassle for Kipcoins customers, put a bunch of passport scans in the hands of potential fraudsters, and cost taxpayers money paying the salaries of bureaucrats to make this all happen.

when will people ever learn.. greedy greedy.  keep your coin and you wont lose it. 

Ah yes. The "hack".

I made a dream last night.
In that dream exchange operators all over the web were stealing BTC from their exchange wallets and blaming all of this on a ''hacker''.
Everybody believed it. Life is good.

Then again that is just a "dream"

I used to keep it on a third party / exchanger. so I am ready to buy the coin when the price down. so that bad?

Not sure whether this one is a real hack or an insider job (a la Mt Gox). I expected the hackers to slow down, as the exchange rates have hit rock bottom.  ;D

I am also to keep it on a third party / exchanger but Don't keep the amount you can't loose
so that if one day there is a problem, we are not too regret  :)

CEO of Kipcoin is a well-known person among the Chinese bitcoin circle. Two reports of him/kipcoin:
http://8btc.com/thread-14335-1-1.html
http://8btc.com/forum.php?mod=redirect&goto=findpost&ptid=14319&pid=91443

Victims are angry because Kipcoin has been withholding information and still throwing around their "Interest Return" products just a couple of days ago. But such weibo has been deleted.

That was expected of kipcoin sooner or later
it was always a ponzi for me

yes of course, I did not save too much only 0.1  ;)

so if the loss is not so sorry  :)

yes you must store on trusted sites and so many who use it :)

Me too, i'm still keep my btc on a exchanger but the amount is not too big just around 0.1BTC

A detailed description of the hacking process and the compensation proposal by Kipcoin CEO.
http://8btc.com/thread-14368-1-1.html

Just read this. Sad to see so many hacks happening every month.

To be perfectly honest, this is the first I've ever heard of Kipcoin.

3000BTC is a whole lot of moolah, but small potatoes if you compare it to Gox, BitStamp, Mycoin hacks.

Just goes to show you not to keep a whole lot of your stash online on centralized wallet services.  Not sure why you'd need to use Kipcoin to trade on exchanges instead of funding exchanges directly, but that's a whole other discussion.

this is not possible to be hacked. in my eyes ALL recent "hacks" = inside attack from employers. because when you run btc-wallet on secured enviroment it s practically impossible to hack funds. but you must keep safe (hardware in controlled location, alternative transport layer for broadcasting funds from cold storage, and so and so on).... it s very sad this is happening again and again. this is only point when i say maybe a little bit control/regulation for exchanges is good. (example - BTC foundation makes team for testing btc-exchanges and only when it s really secure it gets a certification for securement)... but there is 10000 ways for making it s all better and safer.
(all is only my opinion)

thank you

This is obvious how can someone hack an offline wallet with a remote attack? It is impossible. Maybe as you said them were only a lot of inside job for stole all the bitcoin and claim a presumed hack.