BTC38 hot wallet got hacked and lost 1.5 million

[traderethereum]

it is sadly to know and hear about btc38 got hacked and i hope this won't give bad affect for the price of bitcoin. we know that the bitcoin price is going to go up but we don't know how much the price will be high. beside that, i hope that for btc38 itself need to fix their security website so this is not happen for future and the member of btc38 can feel save while they do trading in that site.

[1715631144]

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[hl5460]

it is sadly to know and hear about btc38 got hacked and i hope this won't give bad affect for the price of bitcoin. we know that the bitcoin price is going to go up but we don't know how much the price will be high. beside that, i hope that for btc38 itself need to fix their security website so this is not happen for future and the member of btc38 can feel save while they do trading in that site.

You are right. They do implement some countermeasures. And I will forward the post to btc38.

[Xester]

Well I salute bit38 for taking responsibility  for the accidents unlike other companies after being hacked they don't refund or replace their clients investments. This just show how bit38 is serious about providing good services to their clients and how trusted and stable they are. More power to bit38 and hope the hacker may be caught.

[Kakmakr]

Well I salute bit38 for taking responsibility  for the accidents unlike other companies after being hacked they don't refund or replace their clients investments. This just show how bit38 is serious about providing good services to their clients and how trusted and stable they are. More power to bit38 and hope the hacker may be caught.

It is a small amount compared to other exchanges that got hacked. If it was millions of dollars, they would not have done this. The main thing now is the loss of trust, and this is normally where the guys fold. People stop using the service because they got hacked and the exchange lose more money in fees than they lost in the hack. The other thing is, they lose potential new customers too, because of their bad security history.

These hacks are doing a lot more harm than we think, and it has a very big ripple affect in the industry.

[BigBoom3599]

Well I salute bit38 for taking responsibility  for the accidents unlike other companies after being hacked they don't refund or replace their clients investments. This just show how bit38 is serious about providing good services to their clients and how trusted and stable they are. More power to bit38 and hope the hacker may be caught.

It is a small amount compared to other exchanges that got hacked. If it was millions of dollars, they would not have done this. The main thing now is the loss of trust, and this is normally where the guys fold. People stop using the service because they got hacked and the exchange lose more money in fees than they lost in the hack. The other thing is, they lose potential new customers too, because of their bad security history.

These hacks are doing a lot more harm than we think, and it has a very big ripple affect in the industry.

I actually hope that customers won't lose trust in them, because btc38 has now learned their lesson and will pay way more attention to security in the future, compared to other exchanges who haven't been hacked.

[CoinLearn]

I actually hope that customers won't lose trust in them, because btc38 has now learned their lesson and will pay way more attention to security in the future, compared to other exchanges who haven't been hacked.

Trust is like a mirror. Once broken, it is pretty difficult to restore at the previous condition.

[Tanic]

I thought such hacking should make the price for bitcoin to fall down. But just look at the current price! It's already crossed the point of 900$! When is going to ne 1000$ with such temps? in the end of the day probably.

[raja2sumi]

it s the problem of bitcoins .people are too much greedy about it .and i think that the price of bitcoins get increased.and there is possibility that  all the wallets will be hacked very  soon.

[pinkflower]

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

Good timing for the hackers. BTC is already at over 900 dollars. This is a little too convenient for them, dont you think? This is another inside job by the people who own and run the exchange.

[1Referee]

I thought such hacking should make the price for bitcoin to fall down. But just look at the current price! It's already crossed the point of 900$! When is going to ne 1000$ with such temps? in the end of the day probably.

The stolen amount is too insignificant to have any sort of impact on the market, which is exactly why the market doesn't seem to care at all. I am sure if this was a major exchange, that the price would already be on its way down. I have such a feeling that this isn't the only hack or "hack" that we will be hearing about in the coming weeks. It's no surprise that always when the price is going up in a rapid manner, something will pop up attempting the price to plummet again. I am nearly certain that these are coordinated attacks.

[alphablitzer]

There are a lot of sites that has lots of bitcoin, and I think it would be a matter of time that it would attack another one. Better keep your coins in your wallet that only you have access to. Not that we can't trust the site, it's because we can't trust hackers.

[mace15]

Its really a big loss who owns this bitcoin that was hacked.
Its not really safe at all to save bitcoin in one exchange.
Thus, lets be careful on holding the coins in one exchange.

[LLec]

This just goes to show everybody that nothing is 100% safe when it comes to transmission of currencies and that goes double for any cryptocurrency.
especially to the biggest one of them all: BTC

[valley365]

Really a big issue with all these hacks over the years. The online wallet security is a big concern, that's why people are using offline wallets and paper wallets. Maybe we should implement a way to blacklist certain addresses related to the hacking.

[Yakamoto]

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.  

Only $217k? I'm actually kind of surprised to be honest.

I haven't done much reading into this incident, but for most exchanges I expect massive losses rather than something like a mortgage. While not something to scoff at, it definitely seems like less than one would expect.

As for how the site was exploited, that was something weird to read. Like other people have said, such an easy exploit worries me as to how good of a security system this site had.

[smho_16]

I am not that much surprised to be honest. I expect the same thing to happen to almost any online exchange or web wallet. Hackers are one step ahead (if it is really hackers doing) so we need to be 2 steps ahead of them by using a well protected pc with a desktop wallet like electrum or a hardware wallet in order to be safe. Personally since I have bought the hardware wallet a few months ago I don't read these kind of news at all, only the news that are posted in the forum here. It's sad to see the same story and the same way of people losing money.

This (storing coins in web wallets or exchanges) reminds me the signature of a member here who have said it super right:
Insanity, doing the same thing over and over again and expecting different results.

[BitcoinPC]

It is not a mistake of any exchange, it is our mistake, because recently, Bitfinex has been hacked, and it is not a first time. So why people don't take a lesson from them? Its mean next time, we also heard about anything more than it. People should learn, otherwise it is loss for us, Why we are not worried about our money? 38 BTC, it is a big amount, I am really sad to know about it. 

[jacobmayes94]

Wouldn't it be better for exchanges to store user's funds in such a way that the private keys for the users own coins on their server are encrypted and bound by their login password or a separate passphrase (an option that is higher security but means passwords must be recorded, if a multisig config is used the exchange can refuse to sign with its key until a 2FA key is presented if enabled), but then to further refine it the person can also download a backup of their private keys to store offline, the exchange queries when the wallet balance has been moved when the user logs in or tries to do something else so it  cannot be used once withdrawn. Or a solution like the coinbase multisig vault uses, the exchange stores the users funds with an encrypted shared key with a passphrase, a key the exchange has, and a backup user key that can be combined with the exchanges key to recover a forgotten passphrase, and also enables funds to be recovered if the exchange goes bust... Something like the above solution(s)

That would prevent 1. an exchange going bust and taking all the money unless they somehow put in code to capture passphrases for the shared key (an ideal system would be to decrypt and generate this key on the client machine)
2. Prevent hacks like this rather than keeping loads of funds in a single hot wallet.
3. Give the users more control over their coins.

Coinbase used a set up like this and I spent weeks trying to get them to fix a decryption issue with the vault during the price rise after the halving, in the end I got fed up and just used the user key and shared key to move my coins and it took ages to get a response from them, having control of my coins rather than waiting weeks to spend them was nice : )

[shinratensei_]

I actually hope that customers won't lose trust in them, because btc38 has now learned their lesson and will pay way more attention to security in the future, compared to other exchanges who haven't been hacked.

Trust is like a mirror. Once broken, it is pretty difficult to restore at the previous condition.

It seems different with bitfinex, they can recover their trust member. at least if the mirror was broken, they still can use the little part of the mirror. 

But i hope they will be learning for it.

[kacang]

And again, when bitcoin price spiked then come a bad news
maybe this is staged lol