BTC38 hot wallet got hacked and lost 1.5 million

[BitHodler]

Luckily this hack wasn't as big as some of the previous ones, maybe people are finally learning to stop storing their coins on exchanges maybe we should only use shapeshift style exchanges to minimize losses in case of a hack...

It doesn't really matter how big or small the current theft is, this just shows that no exchange is safe from seeing its hot wallet coins get stolen.

All this is done to make it possible to serve people with fast cashouts at the time they request a withdrawal.

People are screaming for better security, but superior hackers are always one or two steps ahead of all the security measures.

The only thing that will help in this case is that exchanges store all their coins offline and process withdrawal requests manually. There is no other option.

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[buwaytress]

Holy shit.

I think I remember reading about this site and thinking about using it at some point in the near future too. Probably a good thing that I didn't get too interested in it.

You mention that 1.5m RMB was lost though, what is/was the conversion rate to USD? It can mean a huge difference as to what the noted losses are.

The conversion rate is 1 RMB = 0.145 USD, so they got away with about $217801.66 USD if my calculator is working correctly. The users will not be affected in any way, because the exchange already said that they will cover the losses. Why do we always see "hacks" when the Bitcoin price breaks out? People should not store large amounts of coins on these exchanges, but they are not listening and when this happens, people lose a lot of money and then they blame Bitcoin.  

On the other hand, huge hacks usually lead to sharp btc price drops, althought these have historically only meant temporary slips.

The largest ETH hack also did little to spur the slump.

And yes, why do people continue to store such huge amounts on exchanges? Small inconvenience to transfer from a more secure cold wallet.

[piloder]

On the other hand, huge hacks usually lead to sharp btc price drops, althought these have historically only meant temporary slips.
------------------------------snipped ---------------

And yes, why do people continue to store such huge amounts on exchanges? Small inconvenience to transfer from a more secure cold wallet.

This can't be considered as huge hack, as the amount that has been hacked is not much and also much more alts seems to get stolen rather than bitcoin from their hot wallet so better to watch bitshares and NXT market for next few days.

People don't like to wait for time it take to deposit their coins in exchange platform and like to grab the opportunity to buy cheap coins whenever they are available also many traders use to trade on daily swings so they can't afford to wait for time to deposit everytime they want to trade. However it is true storing in cold wallet is safest way to store cryptos. We need decentralized trading platform where we can do p2p trade without need to trust any third party.

[deadsilent]

Wow. Another attack on exchange. This happen too often. But i didnt see the effect on bitcoin price yet.  We'll see that in days. The last time, bitfinex is attack by hackers which triggered the price to fail until it reached $500+ price. Exchange should give insurance to all their customers. They cant just say sorry because its a huge amount.

[Juggy777]

This is really sad news, but how the he'll did they did it. Isn't the security supposed to be super strong, though I do get it hackers found a way, I hope the money gets restored soon. Are other exchanges and wallets also under threats? And no legal case can also be filed right cause it's not a legal currency? Or they can try and track them and get it back?

[xdrpx]

I don't know if I need to say this but, everytime the price of Bitcoin rises by a lot some large or medium sized exchange gets hacked and they flee with the money. The next moment the news and media start reporting it, and the bad news starts pushing the price down by a lot. It's kinda shameful how Bitcoin exchanges are keeping so much funds in their hot wallets. I just hope they have some form of insurance or enough funds in their cold wallet to accommodate the loss or to find the thief (which is going to be very tough) and get back people's hard earned money. I'm also glad they're taking full responsibility for the loss of digital assets. I'm also very glad they have some leads on the hacker.

[BitcoinHodler]

you would think that after this many hacking incidents all this time, these exchanges would take more precautions about their hot wallets but it doesn't look they are learning anything at all.

i just hope they don't disappear like other hacked exchanges who disappeared.

[jak3]

whenever i see any news like it i dream why can't i hack something :p hey will anyone gonna teach me how to hack something or how did that guys hacked this site or exchange. ofcourse its the hardest thing to find vurnability from that much secure site but still it seems pritty exicited

[Dmitry.Vastov]

Thats why its not really safe to store your funds on any exchange because it is prone from hack by the hackers. We all know that. The stolen amount.is not joke. Its still huge to me. Its not wise to store all your funds on any exchange sites for a long time. They should maximized their security because its their customers funds.

[antyivan]

Dex on the WAVES, will help to avoid this

[Bitcoin0916]

Thats why its not really safe to store your funds on any exchange because it is prone from hack by the hackers. We all know that. The stolen amount.is not joke. Its still huge to me. Its not wise to store all your funds on any exchange sites for a long time. They should maximized their security because its their customers funds.

Unfortunately, most of us don't know about it. Sometimes I think, why with blockchain technology people still lost their money, it seems to need some step refinement of the bitcoin system so that could be more secure. My advice, do not ever save large amounts of our money in one place, let alone the exchanger.

[SmartIphone]

RMB = CNY, seems that this hack hasn't affected the bitcoin price today, contrariwise the bitcoin price has been increased today for 100 USD
It's bad to hear like this news about hacks and especially related to exchanges which are very sensitive and hacker's target, that's why nowadays the security is the most important thing in an exchange.

[magneto]

2 hours later, another 8btc thread  gave out the true reason: BTC38 was hit by a hacker with approximate loss of 1.5 million RMB.

“As a result of the server logic problems on 21st Dec, more than 10 million Bitshares, over 10 million NXT and some BTC/LTC were stolen from the exchange’s hot wallet (estimated total loss of  1.5 million RMB). We shut down the server immediately and stayed up all night to fix the problem. We have reviewed our wallet deployment plan and made new adjustments. We will take full responsibility for the total loss of the digital asset (market buyback).” The most important assurance is that all funds are safe in the hands of BTC38.
BTC38 explained the delay to calm down the market:“As we are currently redeploying the wallet, the service for certain coins will be resumed gradually.”

http://news.8btc.com/exclusive-btc38-hot-wallet-got-hacked-and-lost-1-5-million

1.5 million RMB isn't as bad as the Bitfinex hack. In fact it is around the level of the small sized hack that happened to a small company called shapeshift. They didn't suffer that much from it, I doubt BTC38 being a bigger exchange would either.

It is only their CEO's years salary or less, I think that their promise to take on full responsibility will be redeemed without issue.

[hl5460]

2 hours later, another 8btc thread  gave out the true reason: BTC38 was hit by a hacker with approximate loss of 1.5 million RMB.

“As a result of the server logic problems on 21st Dec, more than 10 million Bitshares, over 10 million NXT and some BTC/LTC were stolen from the exchange’s hot wallet (estimated total loss of  1.5 million RMB). We shut down the server immediately and stayed up all night to fix the problem. We have reviewed our wallet deployment plan and made new adjustments. We will take full responsibility for the total loss of the digital asset (market buyback).” The most important assurance is that all funds are safe in the hands of BTC38.
BTC38 explained the delay to calm down the market:“As we are currently redeploying the wallet, the service for certain coins will be resumed gradually.”

http://news.8btc.com/exclusive-btc38-hot-wallet-got-hacked-and-lost-1-5-million

1.5 million RMB isn't as bad as the Bitfinex hack. In fact it is around the level of the small sized hack that happened to a small company called shapeshift. They didn't suffer that much from it, I doubt BTC38 being a bigger exchange would either.

It is only their CEO's years salary or less, I think that their promise to take on full responsibility will be redeemed without issue.

As per the btc38 page, Top 1 holder of btc in btc38 has 5,700 coins.

[JasonXG]

1.5 Mil ? Damn ! Ouch ! I dont know how these guys recover from these things ? The article doesnt tell you how it happened though. I suppose for their protection. Now they habe the cyber police helping. But helping do what ? What are they going to do ? The guys gone the bitcoins are clean by now and goof its as if the hacker never existed.

[CraigWrightBTC]

2 hours later, another 8btc thread  gave out the true reason: BTC38 was hit by a hacker with approximate loss of 1.5 million RMB.

“As a result of the server logic problems on 21st Dec, more than 10 million Bitshares, over 10 million NXT and some BTC/LTC were stolen from the exchange’s hot wallet (estimated total loss of  1.5 million RMB). We shut down the server immediately and stayed up all night to fix the problem. We have reviewed our wallet deployment plan and made new adjustments. We will take full responsibility for the total loss of the digital asset (market buyback).” The most important assurance is that all funds are safe in the hands of BTC38.
BTC38 explained the delay to calm down the market:“As we are currently redeploying the wallet, the service for certain coins will be resumed gradually.”

http://news.8btc.com/exclusive-btc38-hot-wallet-got-hacked-and-lost-1-5-million

The traders whom make investment on bitshares, NXT, LTC. They must becareful with this condition because the dumping will become without announcement.
I don't know if about the bitcoins that be stolen will become impact on the price or not, but it is time for beware there are no body know the bitcoins will get dumping too.

[TastyChillySauce00]

After few hackings to the exchangers site had occurred now its time for the rest exchangers whose bitcoin still in their hot wallets to measure their security again. This shit will always repeat itself because this is about money. I sometimes wonder why exchangers don't put their security in the top while if they got hacked they could lose so much money in just a day and probably can't recover it back. Just hoping no balances cut off for their clients like what have happened to bitfinex

[Dmitry.Vastov]

Thats a huge loss! Hackers can do anything now. So we cant just be too confident that this will not happen to you. It can happen to all of us. The user is careless thats why he loss his funds. But i dont it will affects the bitcoin price. This is a warning for us. So be careful in everything we do.

[chalupasupreme]

somebody lost there job for that one... that is terrible.

[hawkins]

I think, at this time, hackers are targeting sites that have a lot of BTC, and can make them benefit. I think this is very dangerous, and I'm sure they will not stop here. Well, the current bitcoin prices are rising, if there is a site that has many bitcoin, back hacked, bitcoin prices probably will fall back.