Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized

[zhoutong]

i would hold off on the congrats to Zhou until he actually delivers the coins.  that is a lot to deliver.

We are not discontinuing the service. Trading, deposits and withdrawals will all go back to normal in a few hours (once our new Bitcoin server has caught up with the current block).

We are honoring every single withdrawal request, large or small. No account had any balance deductions resulted from this incident.

[1713938142]

1713938142

[1713938142]

1713938142

[cypherdoc]

i would hold off on the congrats to Zhou until he actually delivers the coins.  that is a lot to deliver.

We are not discontinuing the service. Trading, deposits and withdrawals will all go back to normal in a few hours (once our new Bitcoin server has caught up with the current block).

We are honoring every single withdrawal request, large or small. No account had any balance deductions resulted from this incident.

glad to hear you reiterate this.

[kiba]

Let just hope you don't store 40K bitcoin of your customer's money on your red hot wallet next time.

[BkkCoins]

Keeping this many BTC in a "hot" wallet is just nutty. I wonder if MtGox keeps that qty online? If the transfer volume really requires so much instantly available then I'd be looking at ways to use offline wallets and cron based transfers to move money between them as needed. Bitcoin has a lot of flexibility in how transactions are created and posted or batched so I think it would be wise for any business doing high volume transfers to seriously look at ways to keep account depth highly controlled.

Your ability to bounce back despite how hard hit is pretty astounding. Profits must be very worthwhile!

[Clipse]

This is quite insane, this thief is probably follow these threads thats why he started to dump as quickly as possible now.

I still dont see the current dumping as just a phase, its way to linear.

[zhoutong]

Let just hope you don't store 40K bitcoin of your customer's money on your red hot wallet next time.

We are developing a customized Bitcoin client for sever use, with hard-coded security designed specifically for web apps.

[stick_theman]

We are developing a customized Bitcoin client for sever use, with hard-coded security designed specifically for web apps.

That's what I'm talking about!  Fighting back like Rockie already.

[bbit]

Zhou, talk to Mark at mtgox.  i bet there's something he can do to intercept at least some of these coins as the thief tries to cash out on mtgox.

Mt.gox response so far: https://bitcointalk.org/index.php?topic=66986.msg778811#msg778811

[bitcoinBull]

Let just hope you don't store 40K bitcoin of your customer's money on your red hot wallet next time.

It's not customers' money anymore, but his loss.  There's plenty of blame to go around (starting with Linode), but I have enough confidence that zhou can eat the loss, and then make it back.

[max in montreal]

Can we not follow these coins?

If i was the thief, I would deposit onto silk road and just withdraw into another wallet...there is your free coin mixer...

[paraipan]

This is quite insane, this thief is probably follow these threads thats why he started to dump as quickly as possible now.

I still dont see the current dumping as just a phase, its way to linear.

+1

[max in montreal]

half on SR the other half on the armoury...

Scarface...

[bbit]

half on SR the other half on the armoury...

Scarface...

naaassttyyy......

[stochastic]

We didn't have the opportunity to scan our whole system for suspicious transactions that were not initiated from our customers because we had to shut down the system immediately after we've discovered the huge loss. We did get a rough estimate and we published a press release to warn our users about the deposit address replacement.

However, now we have concluded that we lost 43,554 BTC from this incident and we will reimburse our customers for the full amount. For transparency, we would like to disclose all the suspicious transaction ids in this incident:

I hope you get insurance next time to account for any losses due to theft.

[finway]

Not much.

[pastory99]

This is very sad to hear. I wish you the best of luck with whatever you decide to do now.

[Matthew N. Wright]

We didn't have the opportunity to scan our whole system for suspicious transactions that were not initiated from our customers because we had to shut down the system immediately after we've discovered the huge loss. We did get a rough estimate and we published a press release to warn our users about the deposit address replacement.

However, now we have concluded that we lost 43,554 BTC from this incident and we will reimburse our customers for the full amount. For transparency, we would like to disclose all the suspicious transaction ids in this incident:

I hope you get insurance next time to account for any losses due to theft.

Doesn't exist.

You could only have the USD insured.

[viboracecata]

Good luck to zhoutong.

[Bro]

http://news.ycombinator.com/item?id=2973301

[roomservice]

Sorry for your loss zhoutong!

To be honest, this incident brought Bitcoinica to my attention for the first time.

Really great service, i just registered and made a deposit!

Wish you the best and good luck for the future.