MyBitcoin Back Up! (with a press release)

[llama]

Well, with a message at least. Site text copied below. Discuss.

Thursday, August 4th, 2011

From the desk of Tom Williams, operator of MyBitcoin.com

For immediate release.

As you have probably noticed, MyBitcoin.com had been down for almost a week due to an unfortunate event.

On Friday of last week we noticed that one of our pooled holding servers was missing a large amount of Bitcoins. After a prompt investigation we realized that the security of our SCI (Shopping Cart Interface) system had been breached by an unknown attacker.

Our response was rash, but necessary. We simply switched the system off until we could have system-wide forensics performed. The forensics took some time, as the system is quite complex by nature.

After weighing all of our options, we have realized that we have no option but to go into receivership. We will settle all accounts with a online claim process that we are currently in the process of working out.

We will release more detailed information about the security breach, the claim process, and our balance sheet in the next few days.

Tom Williams

Edit 8/5 by Maged: A second press release has been issued. Discuss it in the thread linked below:
https://bitcointalk.org/index.php?topic=34770.0

[the founder]

We have realized that we have no option but to go into receivership.


That's French for "I'm declaring bankruptcy".

Why make us all think he was a crook?  Why not install just a html index page and explain what happened a week ago?  

[FXRiot]

Always good news

[BitVapes]

Why make us all think he was a crook?  Why not install just a html index page and explain what happened?

perhaps he wanted to wait and see what the response would be to mybitcoin's disappearance and determine if he could get away with the rest of the coins.  Maybe he felt some heat now that people are starting to contact the FBI.

[Kermee]

[geek-trader]

Well, bite my balls and call me Monica.  

I'd say they handled this pretty poorly so far.

[BitcoinStars.com]

The saga continues

[Luke-Jr]

I called it. This is basically exactly what I've been theorizing happened. After MtGox got a lot of criticism for explaining before they knew the facts, it only makes sense that MyBitcoin (or anyone else exploited) would keep silent until they had a good idea what was going on.

[lacedwithkerosene]

Well, I'll be ...

[indicasteve]

Aww man...   Rather see that girl in the car boot again.

"On Friday of last week we noticed that one of our pooled holding servers was missing a large amount of Bitcoins. After a prompt investigation we realized that the security of our SCI (Shopping Cart Interface) system had been breached by an unknown attacker."

Mmmhmmm.....  by large amount you mean all...  and by security you mean "Shopping Cart Interface"?

[bitcool]

Thursday, August 4th, 2011

On Friday of last week we noticed that one of our pooled holding servers was missing a large amount of Bitcoins.

Did people say most of the coins haven't been moved?... If this happens to me, my first reaction would be moving all remaining coins into a new wallet.

I won't believe this until he provides transaction details.

[foggyb]

Buying time?

[dvide]

How do we know this is actually Tom Williams? The last 'From the desk of Tom Williams' message was signed by whoever owns this PGP key: http://pgp.mit.edu:11371/pks/lookup?op=vindex&search=0x9FB9834EA5027A85

So why isn't this one signed to confirm that it's from the same person?

[the founder]

Buying time?

he just said he's declaring bankruptcy....   there is no figure on what people will get back... if anything...  maybe 10% back... maybe 50% back... maybe 0% back..

If he's declaring bankruptcy that means that it was a huge loss.

[markm]

Does that mean the entire business, customers and all, can be bought cheap?

-MarkM-

[smoothie]

If Tom thinks he is going to have any business after he returns all people's bitcoins (assuming he has all of it), most people will not trust his method/course of action in handling a matter of such magnitude.

He failed and he failed hard. No message (at all) for 1 week?

Even Mark at Mt. Gox at least posted messages on his support/trouble-ticket system even if he was inaccurate in his timeline estimates of getting back up on running.

Mybitcoin.com should NEVER and I mean NEVER be allowed to hold anyone's bitcoins but their own.

If mt. gox did the same and I got my bitcoin back I would instantly change my method of storing bitcoins in a second.

[the founder]

How do we know this is actually Tom Williams? The last 'From the desk of Tom Williams' message was signed by whoever owns this PGP key: http://pgp.mit.edu:11371/pks/lookup?op=vindex&search=0x9FB9834EA5027A85

So why isn't this one signed to confirm that it's from the same person?

it's an index page on the domain name mybitcoin.com ...  that means whoever wrote that has full access to his server...   It's him.

[the founder]

Does that mean the entire business, customers and all, can be bought cheap?

-MarkM-

Trust me mark..  you don't want that name....    That's like buy Enron...   If you think it's going to be a viable business then go ahead and buy it...   if I thought it was going to be viable I would have already bought it... 

[Bitcoin Swami]

Buying time?

he just said he's declaring bankruptcy....   there is no figure on what people will get back... if anything...  maybe 10% back... maybe 50% back... maybe 0% back..

If he's declaring bankruptcy that means that it was a huge loss.

Soo.... time to buy?

[Maged]

To prevent a massive amount of new threads about this, I'm sticking this.