2012-09-04 cnet.com - Bitcoin exchange BitFloor shuttered after virtual heist

[julz]

Bitcoin exchange BitFloor shuttered after virtual heist
Nearly a quarter million dollars worth of the peer-to-peer currency was stolen by accessing unencrypted backup wallet keys.

Steven Musil
2012-09-04

http://news.cnet.com/8301-1023_3-57506177-93/bitcoin-exchange-bitfloor-shuttered-after-virtual-heist/

Bitcoin exchange Bitfloor is offline and has shut down operations while it investigates the theft of nearly a quarter million dollars worth of the virtual currency.
...

[Stephen Gornick]

Forced to shut down BitFloor, Shtylman said he has initiated account repayment using funds on hand based on his record books,

The latest on that:

Please note that I have taken the website offline. I am consulting legal council about the current situation and will post once I have more details. I want to make sure the matter is handled appropriately given the financial situation the exchange is currently in.

I believe the situation changes once you are insolvent due to liabilities, particularly when they are customer funds.  Getting legal counsel on the matter before returning funds is the correct course of action.

[Kris]

 

[TylerJordan]

How do these 'accidents' happen!    Do people just not realize they are dealing with money? If I ran a bank, would I accidentally forget and leave the vault open and the doors unlocked?  

On one hand, I feel very sorry for this company - it's horrible that there are criminals out there who steal - seriously.    

But. . .but but but. . .they knew there were criminals who would try to steal from them when they entered this business - if they didn't they're just complete morons.    

So, in my eyes, this 'accident' is criminal negligence on their part and I hope that the court of public opinion shuts them down by never giving them a bitcoin again.

disgusting.    

[justusranvier]

How do these 'accidents' happen!    Do people just not realize they are dealing with money? If I ran a bank, would I accidentally forget and leave the vault open and the doors unlocked?

Personally my assumptions have changed since last year.

Accidentally losing money due to bad security practices was plausible before the first set of hacks that happened right after Bitcoin started to gain mainstream awareness last summer.

Now my default assumption in the case of a large depositor loss is theft on the part of the operator, unless evidence to the contrary shows up.

[David Rabahy]

Months later; what is the feeling about Bitfloor now?  I tried wiring to Mt.Gox but it bounced back with no explanation.  I'm not feeling ready for BTC-otc yet.  Coinbase seems limited.  BitInstant seems costly.  Am I the only one struggling to find a safe and reliable way to exchange USD into BTC?

[justusranvier]

Months later; what is the feeling about Bitfloor now?

I use Bitfloor, but my money never stays on the exchange for more than the few minutes it takes between when the LocalTill deposit clears, I execute a market order, and withdraw bitcoins to my own wallet.

[jwzguy]

Months later; what is the feeling about Bitfloor now?  I tried wiring to Mt.Gox but it bounced back with no explanation.  I'm not feeling ready for BTC-otc yet.  Coinbase seems limited.  BitInstant seems costly.  Am I the only one struggling to find a safe and reliable way to exchange USD into BTC?

Depends on who you ask. I've used them many times before and after the hack. I never left anything there, so I was at (basically) no risk. But I think the fact that he's stayed open and is continuing to pay people back when he could have just closed the doors and walked away shows a lot of character. It gives me more confidence in Bitfloor than I had previously.

[epetroel]

Months later; what is the feeling about Bitfloor now?  I tried wiring to Mt.Gox but it bounced back with no explanation.  I'm not feeling ready for BTC-otc yet.  Coinbase seems limited.  BitInstant seems costly.  Am I the only one struggling to find a safe and reliable way to exchange USD into BTC?

I use them pretty regularly, along with CampBX.com and MtGox.  Other than losing 7 BTC in the hack, haven't had any issues since.

[kiba]

You guys gave me a heart attack until I realized that it's back in 2012. 

[SgtSpike]

You guys gave me a heart attack until I realized that it's back in 2012. 

LOL - same.  I thought, wtf, again??

[Piper67]

You guys gave me a heart attack until I realized that it's back in 2012. 

SHOULD'VE CHECKED THE DATE, SIRE!!!!

Shit, I've been dying to do that 

[SgtSpike]

I've been seriously considering BitFloor again, as I was right before the hack occurred.

So much for that plan...

There seems to be a pattern here...

Stop considering BitFloor!!

[Stephen Gornick]

Stop considering BitFloor!!

Related threads:

bitfloor issues?
 - http://bitcointalk.org/index.php?topic=179135.0

bitfloor needs your help!
 - http://bitcointalk.org/index.php?topic=105818.msg1868333#msg1868333

Bitfloor Shutting Down?
 - http://bitcointalk.org/index.php?topic=179152.0

Bitflloor: " Trading will be suspended at 6 PM EST on 2013.04.17."
 - http://bitcointalk.org/index.php?topic=179168.0

Bitfloor trading suspended
 - http://bitcointalk.org/index.php?topic=179198.0

Bitfloor ceases operation reasons rumor/speculation
 - http://bitcointalk.org/index.php?topic=179457.0

[tjohej]

Months later; what is the feeling about Bitfloor now?

I use Bitfloor, but my money never stays on the exchange for more than the few minutes it takes between when the LocalTill deposit clears, I execute a market order, and withdraw bitcoins to my own wallet.

Yep! Being on the safe side that is! I like your style!