Why I no longer trust Blockchain.info

[Coinacopia]

Before I start, I will clarify that I have been a long time user of blockchain.info since 2012-2013 and never had any problem with it until now. It was a great service and did a huge part in helping me get used to bitcoin and managing it.

Several weeks ago, blockchain's service was compromised. About 0.0002% of total Blockchain's users were affected. As part of this 0.0002%, I lost my address and $770 in my wallet. To cut short, Blockchain emailed everyone of this incident and offered to pay back all our lost funds. As expected from one of the largest bitcoin services, I received my $770...2 weeks later.

Getting my funds back was not easy. I had to provide the support with my personal password used for the blockchain account. Giving up your personal password you have kept securely for years is not easy, especially when you use it for your online bank accounts and on sites like godaddy, paypal, coinpayments, coinbase, gmail..etc. I do have multiple different passwords for less important accounts, and I only use my personal password on websites that I trust.

I got refunded, and was then advised to open a new blockchain account with a new address. This is the reason why I don't trust blockchain. As an internet market, I  sell many things online, both IRL and online items. I have multiple shops using coinpayments, payivy, coinbase, shopify, websites with whmcs..etc. A few days later after getting refunded I noticed a transaction of $100 sent to my compromised blockchain address from one of my multiple shops I created online. I forgot to change the withdraw address of that one shop.This was completely my fault for not remembering to change the withdraw address (account on PayIvy). I sell many things on multiple websites. It was near impossible to keep track of them all. I run multiple websites as well. Feeling sore over losing $100, I contacted Blockchain hoping they had a way to refund me. As expected, they refused to refund me and ignored me till this day claiming this was not their fault, since the payment was after the day my address was hacked(Didn't really get this).

I lost money due to my forgetful nature, but I wouldn't have lost my money if they did a good job of protecting users in the first place. To add, I was also busy changing my password on multiple websites after getting refunded.

Thankfully, $100 was not a lot. If it was a good sale day, that $100 could have been $500-$600. This is why I no longer trust blockchain.

To think the largest bitcoin service couldn't even do a good job of protecting users' funds and avoid responsibility after getting hacked.

[sangaman]

I'm sorry for your loss but I would not at all expect blockchain.info to refund the $100 that was lost after the fact.I thought refunding affected users' money promptly reflected well on them (if you think 2 weeks isn't prompt, try to get money back from the US govt).  They are a free service and reimbursing anything beyond that seems like wishful thinking. I'd also imagine that this could open them up to fraud if someone were to "pretend" to lose money at a compromised address but really just reroute the bitcoins to another one of their addresses.

[Haslett5236]

  i never use it again

[timz]

Giving up your personal password you have kept securely for years is not easy, especially when you use it for your online bank accounts and on sites like godaddy, paypal, coinpayments, coinbase, gmail..etc.

OMG! I'm sorry, but it is incredibly stupid to use the same password for several important sites like bank accounts. Incredibly, incredibly stupid. For example, if hacker who compromised blockchain.info collected it, he knows all your passwords right now.
About your issue. If the sum received to your old wallet is still there, you may try to restore your wallet using backup, received early to your e-mail.

[twister]

Not taking anybody's side here but since they informed you about the hack and they did returned your lost money, it was your duty to update your new wallet address at all of your sales sites.

Didn't you had keys to your old wallet?

[BitCoinDream]

Not taking anybody's side here but since they informed you about the hack and they did returned your lost money, it was your duty to update your new wallet address at all of your sales sites.

Didn't you had keys to your old wallet?

Sometimes customers expect to be spoon fed.

[GÜNther.Danish]

you did the right, we can't trust anything else in bitcoin.

[Stcgold]

i onyl trust 1
Bitcoin Core

[Coinacopia]

Giving up your personal password you have kept securely for years is not easy, especially when you use it for your online bank accounts and on sites like godaddy, paypal, coinpayments, coinbase, gmail..etc.

OMG! I'm sorry, but it is incredibly stupid to use the same password for several important sites like bank accounts. Incredibly, incredibly stupid. For example, if hacker who compromised blockchain.info collected it, he knows all your passwords right now.
About your issue. If the sum received to your old wallet is still there, you may try to restore your wallet using backup, received early to your e-mail.

That is the thing mate. I trust these sites enough to not get conpromised. At once I have more than $5000-$6000 of bitcoin on there.

[dserrano5]

I trust

You trust, you fail. "No, they fail" I hear you say, ok that's fine but at the end of the day the outcome is the same. trustno1 mr. mulder.

[rammy2k2]

well, as far as i read, this was YOUR mistake ... so ... why they should refund u ?

[kl8847]

I trust

You trust, you fail. "No, they fail" I hear you say, ok that's fine but at the end of the day the outcome is the same. trustno1 mr. mulder.

You are right, trust no one.

[abstream]

blockchain.info is legitimate service - one of the few out there, i think we, as a community shall respect that. I am not sure why would you create a post like this having in mind that it was YOUR mistake(your own words).Your post is actually positive with respect to blockchain.info
having the same pass for so many services is quite lame as well - I would rather use different passes and change them regularly.  if your are just trying to mention your sites here, that's another story.

[Kprawn]

You should know that the biggest online wallet provider, will be the biggest target for hackers and scammers.

The % of people affected by this was VERY low, and I am amazed that they can keep the site below the radar and secure for such a long period.

For this reason, I use multiple service providers. {Too many coins in one place, increase your risk, to loose everything in one hack}

[2dogs]

Before I start, I will clarify that I have been a long time user of blockchain.info since 2012-2013 and never had any problem with it until now. It was a great service and did a huge part in helping me get used to bitcoin and managing it.

Several weeks ago, blockchain's service was compromised. About 0.0002% of total Blockchain's users were affected. As part of this 0.0002%, I lost my address and $770 in my wallet. To cut short, Blockchain emailed everyone of this incident and offered to pay back all our lost funds. As expected from one of the largest bitcoin services, I received my $770...2 weeks later.

Getting my funds back was not easy. I had to provide the support with my personal password used for the blockchain account. Giving up your personal password you have kept securely for years is not easy, especially when you use it for your online bank accounts and on sites like godaddy, paypal, coinpayments, coinbase, gmail..etc. I do have multiple different passwords for less important accounts, and I only use my personal password on websites that I trust.

I got refunded, and was then advised to open a new blockchain account with a new address. This is the reason why I don't trust blockchain. As an internet market, I  sell many things online, both IRL and online items. I have multiple shops using coinpayments, payivy, coinbase, shopify, websites with whmcs..etc. A few days later after getting refunded I noticed a transaction of $100 sent to my compromised blockchain address from one of my multiple shops I created online. I forgot to change the withdraw address of that one shop.This was completely my fault for not remembering to change the withdraw address (account on PayIvy). I sell many things on multiple websites. It was near impossible to keep track of them all. I run multiple websites as well. Feeling sore over losing $100, I contacted Blockchain hoping they had a way to refund me. As expected, they refused to refund me and ignored me till this day claiming this was not their fault, since the payment was after the day my address was hacked(Didn't really get this).

I lost money due to my forgetful nature, but I wouldn't have lost my money if they did a good job of protecting users in the first place. To add, I was also busy changing my password on multiple websites after getting refunded.

Thankfully, $100 was not a lot. If it was a good sale day, that $100 could have been $500-$600. This is why I no longer trust blockchain.

To think the largest bitcoin service couldn't even do a good job of protecting users' funds and avoid responsibility after getting hacked.

Thanks for sharing your experience with us.
I have to agree with you - I would not use them again.

Fool me once, shame on you.  Fool me twice, shame on me.

[ScryptAsic]

Getting my funds back was not easy. I had to provide the support with my personal password used for the blockchain account. Giving up your personal password you have kept securely for years is not easy, especially when you use it for your online bank accounts and on sites like godaddy, paypal, coinpayments, coinbase, gmail..etc. I do have multiple different passwords for less important accounts, and I only use my personal password on websites that I trust.

You should not use the same password on multiple accounts/websites for exactly this reason. It is not unheard of to have your actual password compromised on even a reputable website.

Some websites even use your old passwords as a way to verify your identity when attempting to reset your password

[mayax]

You should know that the biggest online wallet provider, will be the biggest target for hackers and scammers.

The % of people affected by this was VERY low, and I am amazed that they can keep the site below the radar and secure for such a long period.

For this reason, I use multiple service providers. {Too many coins in one place, increase your risk, to loose everything in one hack}

wise choice

[medUSA]

If you still have your old wallet backup, you could extract your private keys and import them into another client. You can then access your old addresses and send the coins to your new wallet. There is no need to ask for refund from blockchain.info.

[ScryptAsic]

If you still have your old wallet backup, you could extract your private keys and import them into another client. You can then access your old addresses and send the coins to your new wallet. There is no need to ask for refund from blockchain.info.

The private key associated with the address the withdrawal was sent to were compromised and an attacker was able to sweep the funds into an address that they control. As a result the OP has no way of getting the funds to himself.