Bitcoins Security Compromised, $1 Million Lost
Bitcoins took a major blow last week: a $1 million loss. This is a result of a hack on the digital wallet service that many users link to their Bitcoin accounts.
Inputs.io is essentially a virtual safe deposit box that people can use for their Bitcoins. The site strongly warns against storing large volumes of Bitcoins on the server because hacks like this are a possibility. Nevertheless, people push the boundaries, and now they are paying the price.
The recent hack happened over the course of two attacks, which lead to a loss of close to 4,100 BTC. Bitcoins are designed to be somewhat anonymous, making it almost impossible for site owners to identify the hacker. What makes this even worse is that Bitcoin transactions cannot be reversed. Once the money goes to another account, it is gone.
This information is courtesy of an anonymous user called “TradeFortress,” who some are accusing of being the hacker. The user made a comment on a forum saying, “I’m repaying with all of my personal Bitcoins, as well as remaining cold storage coins on Inputs, which adds up to 1540 BTC. I know this doesn’t mean much, but I’m sorry, and saying that I’m very sad that this happened is an understatement.”
Inputs did not store many Bitcoins offline, making it an easy target for hackers. TradeFortress addressed the idea of keeping a large volume of Bitcoins online like this by saying, “in hindsight …[it] was a completely idiotic idea.”