FaucetPay Hacked - $600 000 in crypto lost!

[Lucius]

One of the popular micro-wallet services has been hacked - the good news is they plan to compensate the damage to their customers. What is important is not to use old deposit addresses and send coins to them.

Unfortunately, we have to announce that FaucetPay suffered today a loss of around $600,000. Our hot-wallets were compromised and the hacker had access to the funds. We are still investigating the issue and have shared all details with the local authorities. Please rest assured, FaucetPay will cover the loss and no users will be affected from the hack. In the meantime, we ask for your patience until we can re-enable deposit and withdrawals. Please do not send any funds to previous deposit addresses as they will be lost. New addresses will be generated. We are deeply sorry for the inconvenience it caused.

It's hard for me to understand that someone keeps as much as $600 000 in a hot wallet, and one simple hardware wallet costs about $50...

[RishiDev]

Since crypto is untraceable ( mostly), we will never figure out whether they are telling true or not. 

[smartbitco]

It's hard for me to understand that someone keeps as much as $600 000 in a hot wallet, and one simple hardware wallet costs about $50...

May be they were busy in developing / coding Feyorra and behind their back , someone was coding hackora. 

[Alge898]

HOT WALLETS ?

Bullshits!

[LTU_btc]

Damn, $600k worth of crypto, it's such huge money for faucet microwallet. If they are really going to cover all losses it will be something big.
But keeping so much money in hot wallet, it's just so stupid and not responsible. I don't know how I can trust service which don't take even minimal precautions to protect funds of customers.

[UserU]

Damn, now I'd have to disable my withdraws from A-Ads since they're being sent daily.

[SFR10]

It's hard for me to understand that someone keeps as much as $600 000 in a hot wallet, and one simple hardware wallet costs about $50...

But keeping so much money in hot wallet, it's just so stupid and not responsible. I don't know how I can trust service which don't take even minimal precautions to protect funds of customers.

I agree with both of you but perhaps, they had to keep a certain amount in their hot wallets so they could process fast/priority withdrawals ^{[not taking sides]}.
^{- Unfortunately, they paid the price for offering such withdrawals [even though I'm sure they've gained a lot from those fees] and it'd be interesting to see if they'll be offering it again.}

[LTU_btc]

I agree with both of you but perhaps, they had to keep a certain amount in their hot wallets so they could process fast/priority withdrawals ^{[not taking sides]}.
^{- Unfortunately, they paid the price for offering such withdrawals [even though I'm sure they've gained a lot from those fees] and it'd be interesting to see if they'll be offering it again.}

Yes, it's something understandable to keep some funds in the hot wallet. Like Freebitco.in for example, they keep just 5% of their Bitcoins in hot wallet.
While in this case, I suppose that biggest part of their crypto were in hot wallet. There is over $600k worth of crypto were stolen, I hardly can imagine that faucet microwallet would had much more crypto. Especially considering that they aren't as popular as Faucethub or Faucetbox were in past and there is not so many people using faucets like few years ago.
It will be interesting to follow how this story will developp further.

[bitcoinblog]

............ there is not so many people using faucets like few years ago.

Alexa rank of some faucet indicating still a lot of people are using faucet. Either bcoz they dont know trading or afraid to loose what they earned.

[Lucius]

I agree with both of you but perhaps, they had to keep a certain amount in their hot wallets so they could process fast/priority withdrawals ^{[not taking sides]}.
^{- Unfortunately, they paid the price for offering such withdrawals [even though I'm sure they've gained a lot from those fees] and it'd be interesting to see if they'll be offering it again.}

Trust me, there is no need to keep that amount in a hot wallet, although I don’t know how much FP pays on a weekly or daily basis to its customers, but I believe it is even much less than 5 BTC in total. This is nothing more than a simple irresponsibility towards oneself and customers - and the only positive thing is the fact that the service has remained active, because in the past things like this usually meant that everyone could say goodbye to their coins.

[bitcoinblog]

As per their telegram updates.

Withdraw and Deposit both are re-enabled. And site functions are open again.

[SFR10]

While in this case, I suppose that biggest part of their crypto were in hot wallet. There is over $600k worth of crypto were stolen, I hardly can imagine that faucet microwallet would had much more crypto.

Trust me, there is no need to keep that amount in a hot wallet, although I don’t know how much FP pays on a weekly or daily basis to its customers, but I believe it is even much less than 5 BTC in total. This is nothing more than a simple irresponsibility towards oneself and customers -

I couldn't agree more ^{[unfortunately]}...

there is not so many people using faucets like few years ago.

This might sound weird but I still use faucets regularly ^{[mostly with the help of automated platforms but it still counts]}.

It will be interesting to follow how this story will developp further.

Deposit and withdrawals are back ^{[ahead of schedule]} but coin swap is still not working ^{[should be back at 25th]}.

and the only positive thing is the fact that the service has remained active, because in the past things like this usually meant that everyone could say goodbye to their coins.

Exactly. Hopefully, this wasn't a marketing strategy of some sort.

~Snipped~
And site functions are open again.

Not all of them.
^{- You beat me to it.}

[LTU_btc]

@bitcoinblog, @SFR10, yeah, people are still using faucets, I do it myself sometimes. But I suppose that numbers went down significantly, compared with activity few years ago. I remember how active Micro Earnings board here was few years ago. While now we have just few more or less active topics.
Any way, it's good to see withdrawals and deposits are back. I pay my respect to Faucetpay that they continue to work even after such big loss of crypto.

[Lucius]

This might sound weird but I still use faucets regularly ^{[mostly with the help of automated platforms but it still counts]}.

It's not weird, I have my own faucet list that has been active since 2016, so even though the earnings from referrals are minimal - some slightly more serious sites still give solid results with a decent number of active referrals. After all, everyone chooses how to use their free time.

Any way, it's good to see withdrawals and deposits are back. I pay my respect to Faucetpay that they continue to work even after such big loss of crypto.

It is possible that they may have been successful in returning part of the hacked funds, as they very quickly identified where the funds were located and notified exchanges. As for FaucetBox and FaucetHub, they came out of business completely clean, but there was one similar platform that I'm not sure exactly what it's called (something that starts with E) that scam us all - I know I lost a significant amount of coins at the time.

[LTU_btc]

As for FaucetBox and FaucetHub, they came out of business completely clean, but there was one similar platform that I'm not sure exactly what it's called (something that starts with E) that scam us all - I know I lost a significant amount of coins at the time.

Probably you're talking about Epay.info. They said that their website got hacked https://bitcointalk.org/index.php?topic=1149545.msg19395836#msg19395836. But I don't believe them, I think they made exit scam. Later they sold website to someone.
I don't remember how much money I had there, but I think not that much fortunately.

[FinneysTrueVision]

Well it's really good news that they are still going to cover their losses instead of trying to pass on the cost to their users. Hopefully they will learn their lesson and implement better security. Even if it means that withdrawals will take longer due to having less funds in their hot wallet, it is better to be safe than sorry.