BREAKING: Atlanta based Bitcoin giant BitPay hacked for nearly $2,000,000!

[Lauda]

Is this confirmed by a better source? If so it's pretty horrific publicity for bitcoin. Gross negligence by Bitpay if true it really is, how can a company be so unprofessional. That is a hell of a lot of money to lose.

No wonder adoption has stalled when shit like this keeps happening.

This happened a year ago. I doubt that many people knew about this until this lawsuit and article(s) appeared.

And secondly - there should be some sort of failsafe system to prevent ONE person to have access to all funds.

You should have read the second part of my post. They don't even need a complicated system. A multi-signature way of releasing big payments.

How come I have better security procedures than BitPay  

People working at big companies are dumber than you think. He got tricked easily via email. I wonder if he is using MS security essentials on his PC. 

[okae]

People working at big companies are dumber than you think. He got tricked easily via email. I wonder if he is using MS security essentials on his PC.  

hahaha you made me laught, becuase you are 110% right

There is almost always human factor and error included in every hacking attempt. It is their own fault they were hacked.
And secondly - there should be some sort of failsafe system to prevent ONE person to have access to all funds.

you know, nobody is perfect, but if they are "playing" with the money of others,  they should care a little bit more about it, in the end, whats happend here is more or less the same as with MT.Gox... i mean from the point of view of users.

[itod]

The next day, the imposter sent another email to the CEO asking him to send an additional 3000 bitcoins to the customer. The CEO emailed Krohn to confirm the request, and the imposter sent back an email saying the transfer was valid. The CEO then sent the bitcoins.

Knowing that even the biggest bitcoin companies, like BitPay, don't have multi-signature mechanisms for these kinds of tasks is mind boggling. Is it really so hard to implement multisingatures that they have to trust email confirmations for such a large transactions? Wouldn't it be easier that both executives sign the transaction, instead of asking each other to confirm something by email? Unbelievable.

[unamis76]

There's something really fishy about this story, or they're not telling everything. First thing: why did Krohn provided his corporate email password (or any other password for the record) in an unknown random website that was just supposed to ask for an opinion about a bitcoin industry document?

And who the hell sends that many funds without questioning? This story really doesn't seem to connect and makes everyone at BitPay look stupid. Not really falling for this...

[EternalWingsofGod]

This reminds me of the Mt. Gox scandal that brought down the price of Bitcoin from $1000 to eventually where it is now. That, plus all of the controversy around BIP 101, I would say the price is going to be low for a while until things cool down.

Alas I'm in agreement with you on this one, Bitpay has filled in the role Gox has to an extent and more hacks on major exchanges just causes percieved insecurity in the system.

[JeWay]

First, Mt. Gox. And now, Bitpay. Then, who's next?

[julian071]

This definitely shows that using Bitcoin is just as easy as sending email.

[Come-from-Beyond]

First, Mt. Gox. And now, Bitpay. Then, who's next?

Not that fast, first let's watch Bitpay bankruptcy drama.

PS: Does anyone remember how much time passed since Mark got he had problems till he initiated the bankruptcy procedure?

[kelsey]

This definitely shows that using Bitcoin is just as easy as sending email.

i lol'd 

[itod]

First, Mt. Gox. And now, Bitpay. Then, who's next?

Not that fast, first let's watch Bitpay bankruptcy drama.

PS: Does anyone remember how much time passed since Mark got he had problems till he initiated the bankruptcy procedure?

C'mon, this doesn't even resemble to MtGox. There's no exchange involved, and nobody's money is being held hostage. It's expensive corporate fuckup, but it's small enough to be covered from current income.

[Come-from-Beyond]

C'mon, this doesn't even resemble to MtGox. There's no exchange involved, and nobody's money is being held hostage. It's expensive corporate fuckup, but it's small enough to be covered from current income.

MtGox looked legit too, compare these companies without retrospective.

[MicroGuy]

Is this confirmed by a better source? If so it's pretty horrific publicity for bitcoin. Gross negligence by Bitpay if true it really is, how can a company be so unprofessional. That is a hell of a lot of money to lose.

No wonder adoption has stalled when shit like this keeps happening.

Yeah I want a better source this sounds like click bait and everyone is blindly following it, without proof I am calling this bullshit.

Read pages #34-35 here: http://media.bizj.us/view/img/7016312/bitpay-2.pdf

[bitgolden]

Read pages #34-35 here: http://media.bizj.us/view/img/7016312/bitpay-2.pdf
[/quote]

 It seems some insurance company's track sheet on bitpay. I googled. But not that much news on bitpay hacking... may be expect tomorrow...

[MF Doom]

C'mon, this doesn't even resemble to MtGox. There's no exchange involved, and nobody's money is being held hostage. It's expensive corporate fuckup, but it's small enough to be covered from current income.

MtGox looked legit too, compare these companies without retrospective.

The question now becomes:  Is everyone jumping the gun with these btc startups?  Are the people running these completely incompetent?

or

Is btc too weak and too prone to hacks that its completely unsafe to use online?  Yeah I know everyone says "just use a paper wallet!" but that can only help so much.  Sad story, and shows you cant trust insurance companies!

[Mitchell]

How can be someone this stupid? No GPG confirmation? No phone confirmation? Nothing? Jesus.

[DarkHyudrA]

One hacked e-mail and he could get a enterprise wallet of 5k BTC?
I thought security was something important when the subject is money.

[pooya87]

~~~
"After capturing Mr. Krohn's Bitpay credentials, the hacker used that information to hack into Mr. Krohn's Bitpay email account to fraudulently cause a transfer of bitcoin" valued at $1,850,000, the lawsuit says.

According to court documents, the transfer was a total of 5,000 bitcoins in three separate transactions.
~~~

what the F is wrong with these companies?

do they not know that sending a fake email is super easy. maybe i am missing something here but for transferring 1/3 of 5000 BTC which is around 400K USD any stupid person would double check everything.

i mean sending a spoofed email is so easy that anybody can do it by just googling how to...

[Come-from-Beyond]

...they are obviously solvent...

...and run fractional reserve?

[adamstgBit]

well there goes this year's profit margin

[adamstgBit]

they should get these kinds of request signed with a private key stored on an air gapped PC.
it will add a few mins to the process, but it would prevent this hack