More failed exchanges this month

[Nagle]

So far this month:

• Feb. 11, 2015: BTCXChange - Bitcoin Exchange Closes after Lead Programmer Holds Servers Hostage
• Feb. 10, 2015: MYCoin closes its doors, $387 million in investor funds vanishes
• Feb 3, 2014: CryptoTrade - Another Bitcoin Exchange Shuts With Little Warning
• Feb 15, 2015: Chinese Bitcoin Exchange BTER hacked

The entire Bitcoin exchange industry seems to be either clueless or crooked.

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[odolvlobo]

Well, lets be more specific.

Bter hasn't failed yet.
Mycoin was not an exchange.

[twister]

I am sorry but I don't buy all exchanges getting hacked one after the another story anymore. They're crooked, they run legit for a while to gain trust and when they have enough capital they just cash it all out and call it a Hack. And they know that no body can do anything about it.

After a while, they buy a new domain get a new outlook and start at it again.  And it's just sad and really bad publicity for Bitcoin.

[Nagle]

Bter hasn't failed yet.
Mycoin was not an exchange.

Coindesk says Mycoin was an exchange. Mycoin called themselves the "leading global Bitcoin trading platform".

BTER is off line. Their site says "All wallets have been shut down and withdrawals of the unaffected coins will be arranged later.". FAIL.

[DieJohnny]

I think what you probably have is an exploit in frequently used addresses that is more vulnerable than we realize......

[rich93]

http://www.reddit.com/r/Bitcoin/comments/2w00yo/three_exchanges_hacked_in_24_hours/

This post says these two exchanges might also have been hacked in addition to bter.

https://exco.in/
https://hitbtc.com/

[Lauda]

Bter hasn't failed yet.
Mycoin was not an exchange.

Coindesk says Mycoin was an exchange. Mycoin called themselves the "leading global Bitcoin trading platform".

BTER is off line. Their site says "All wallets have been shut down and withdrawals of the unaffected coins will be arranged later.". FAIL.

Coindesk says a lot of things.
Saying something, doesn't make it true.

[Kprawn]

It's clearly a weakpoint and that would be why governments wants to regulate them out of existance. 

Until we find a way to prevent people from storing huge amounts of Bitcoin in one place, we will keep on having the same problem. If a hacker needs to choose between hacking a person with 0.2 Btc and a wallet service provider or a exchange with 100 000 Btc.... what will he go for?

It's also a good excuse for them to run with money. {In-house job}

[redsn0w]

Mycoin was only a pyramid scheme, they called trading platform only for hide their real "business". Bert is not failed, they (bter) can repay a little % of the btc lost (if they want).


Remember : an exchange is not a bank.   The various exchange should start to use multiSig (for example the greenAddress wallet uses multiSig) for their real cold wallet.

[gbianchi]

It's clearly a weakpoint and that would be why governments wants to regulate them out of existance. 

Until we find a way to prevent people from storing huge amounts of Bitcoin in one place, we will keep on having the same problem. If a hacker needs to choose between hacking a person with 0.2 Btc and a wallet service provider or a exchange with 100 000 Btc.... what will he go for?

It's also a good excuse for them to run with money. {In-house job}

https://bitcointalk.org/index.php?topic=945881.0

[Q7]

I am sorry but I don't buy all exchanges getting hacked one after the another story anymore. They're crooked, they run legit for a while to gain trust and when they have enough capital they just cash it all out and call it a Hack. And they know that no body can do anything about it.

After a while, they buy a new domain get a new outlook and start at it again.  And it's just sad and really bad publicity for Bitcoin.

I agree. All these make people lose trust in bitcoin. Which now brings me to the question whether we need to make it as part of the regulatory. I mean has anybody been prosecuted to reclaim back the money lost? Hack and then end of story