Payment Processor "EgoPay" Confirms Hack, Insider Suspected

[Madness]

They going down one by one , most of the huge Bitcoin-related website are getting hacked and losing money. That's really sad
they lost about $1.1m in the hack. maybe nothing compared to Mtgox or Bitsmap ... still a huge amount of money

""Rightfully, people are upset at us. We failed to communicate. We failed our membership base. We take full responsibility on this.""
I like that . they take responsibility

More informations can be found here : http://www.coindesk.com/payment-processor-egopay-confirms-hack-insider-suspected/

[btbrae]

I for one, am also glad they're taking responsibility. It seemed to be up in the air as to who indeed would take responsibility... some people were openly discussing possible candidates, but I personally had full confidence that we would see Egopay stepping up to the plate in that regard. This is a company that does not let you down.

[thejaytiesto]

Why is this happening? well simple, they see the price is going down and they are pannicking. It only takes one person that has access to the private keys (coins stored in the deposits) to withdraw and run with the money. This is why its hard to trust centralized exchanges.

[SirChiko]

So all they did was kicking the suspected persons and not doing anything about it? That's sad, like come on, no investigation?

[Q7]

There needs to be accountability and every time these things happens, the culprit if this is insider job must be caught. Let's see how the situation is handled and hope none of the client's money is lost . Bitstamp is a good example on how they handle the case professionally.

[manselr]

So all they did was kicking the suspected persons and not doing anything about it? That's sad, like come on, no investigation?

The authorities dont care about any of this it seems, for they to care Bitcoin would need to get more formal regulations and I dont know if its worth it.

[SirChiko]

So all they did was kicking the suspected persons and not doing anything about it? That's sad, like come on, no investigation?

The authorities dont care about any of this it seems, for they to care Bitcoin would need to get more formal regulations and I dont know if its worth it.

There are regulations set in alot of states already, aren't they?

[Wendigo]

And by insider they mean the CEO or his wife or what? Maybe the kid needed some pocket money for Disneyland.

[Madness]

Luckily i already spend all of my balance in my egopay account to buy BTC
But, no investigation or reverse transaction ?

I hope they can recovery soon

I don't see what they could do beside that , really . We are talking about bitcoin here it's not like they can catch the guy by tracing transactions on his Credit card or his Bank accounts . Not sure if the amounts hacked are in BTC tho

[SirChiko]

Luckily i already spend all of my balance in my egopay account to buy BTC
But, no investigation or reverse transaction ?

I hope they can recovery soon

I don't see what they could do beside that , really . We are talking about bitcoin here it's not like they can catch the guy by tracing transactions on his Credit card or his Bank accounts . Not sure if the amounts hacked are in BTC tho

The ammounts are in US dollar.

[Gladdy]

Lately, we see alot of Hacking going on around us.  That is exactly what hold back those people who want to jump on the bitcoin bandwagon. Fear of being hacked and lose everything they own.  It is a sad thing. 

[ScryptAsic]

Luckily i already spend all of my balance in my egopay account to buy BTC
But, no investigation or reverse transaction ?

I hope they can recovery soon

I don't see what they could do beside that , really . We are talking about bitcoin here it's not like they can catch the guy by tracing transactions on his Credit card or his Bank accounts . Not sure if the amounts hacked are in BTC tho

It is possible to trace bitcoin if you are tracking large enough of amounts, even through a mixer. Although generally speaking it is very difficult to do so and the amount in question generally needs to be several thousand BTC at the very least

[Baytoba]

let's see if Egopay will cover 1,5 MIL USD

anyway they lost many merchants...

i think its impossible they will cover mate

[mayax]

let's see if Egopay will cover 1,5 MIL USD

anyway they lost many merchants...

i think its impossible they will cover mate

then, good for them, yes, there are rumors that they will cover the hack and paying the money.

Tadas was/is CEO and the owner was someone else. Owner = company shareholder. There are two different things.... it could be possible that the shareholder to run with the money and the "puppet" (Tadas) to remain to give explanations. everything is possible !

From my recent information, Tadas had only a small share from Egopay. Yes, it is/was CEO but the not the owner. Considering the fact that they came with an annoucement where they are saying some "inside things"...it can be possible for Egopay to pay the loss.

[clownius]

Wasnt EGOPay a Fiat money transmitter?

I know the BTC community used it but it was all fiat at their end.

So stop blaming BTC FFS

[ScryptAsic]

Wasnt EGOPay a Fiat money transmitter?

I know the BTC community used it but it was all fiat at their end.

So stop blaming BTC FFS

They operated in a similar way that bitpay operates. They receive bitcoin on behalf on merchants then sell it on an exchange (also on behalf of merchants) and forward the merchant the fiat equivalent they received in bitcoin. 

What appears to have happened is that someone apparently was able to get people to send bitcoin to addresses that egopay did not have the private keys to, so they never received the bitcoin and cannot sell it for fiat

[SirChiko]

Wasnt EGOPay a Fiat money transmitter?

I know the BTC community used it but it was all fiat at their end.

So stop blaming BTC FFS

They operated in a similar way that bitpay operates. They receive bitcoin on behalf on merchants then sell it on an exchange (also on behalf of merchants) and forward the merchant the fiat equivalent they received in bitcoin. 

What appears to have happened is that someone apparently was able to get people to send bitcoin to addresses that egopay did not have the private keys to, so they never received the bitcoin and cannot sell it for fiat

That means 1.5 milion loss just for few hours while the exploit wasn't detected? Then they should be able to cover the losses as 1.5m per few hours has to have some fees.