$1.3 Million Worth of Bitcoin Stolen in Online Robbery

Tristan Kitchin November 11, 2013 0
$1.3 Million Worth of Bitcoin Stolen in Online Robbery

$1.3 million in Bitcoin was stolen by cybercriminals from inputs.io, a company that offers digital storage of the currency in online wallets. The website founder, known by the name of TradeFortress, has confirmed the website was hacked on two separate occasions, on Oct. 23 and Oct. 26, and 4,100 BTC was stolen during the heists.

TradeFortress posted an announcement on the website last Friday, explaining how the cyberhackers broke into the site’s hosting account by compromising a number of old email accounts. They were even able to bypass the implemented two-factor verification process by exploiting a flaw on the host server.

What will happen to the theft victims? TradeFortress has informed those affected that refunds are on the way, but the website does not have enough money “to pay everyone fully.” Given the nature of Bitcoin and the way they are designed, it is unlikely the hackers will ever be caught, or the money recovered. Some have suspected TradeFortress himself is responsible for the heist, and this is all part of a plan of his to steal his customers’ Bitcoin, an accusation he has vehemently denied.

Following the hack, TradeFortress has pronounced the website dead and has issued some parting words Bitcoin user should heed:

“I don’t recommend storing any Bitcoins accessible on computers connected to the Internet”

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