CoinWallet to Close After Data Breach

CoinWallet to Close After Data Breach

April 12, 2016         Written By John H. Oldshue

CoinWallet, a Bitcoin online wallet service, announced this weekend that it would be closing. The company said an April 6, 2016 data breach fueled the decision.

According to a company statement, “This incident prompted us to reassess the viability of running coinwallet.co and it was decided it is just not viable taking into consideration the risk, costs and time involved.”

The breach occurred due to a “small” code error in a recent update. Luckily, a backup security system was in place, so no coins were lost.

In response to the breach, the company immediately reset passwords, deleted all API keys and stopped the Twitter Tip Bot. They advised customers to change any passwords related to their Coinwallet.co website.

“It would be advised to change passwords on any other crypto related websites where you use the same password and username as coinwallet.co. We used encrypted and salted passwords but given enough time these should be assumed compromised.”

The company has asked customers to withdraw all of their coins as soon as possible, as they will shutdown on May 1, 2016. The coins are available for immediate withdrawal, but the company warns there may be delays.

“Given the large number of transactions that will occur over the next few days and weeks, we expect there may be some delays in processing some transactions. Please be patient and rest assured we will process all transactions as quickly as possible and make sure all outstanding transactions are processed before we close.”

CoinWallet is not the only Bitcoin company to close after a data breach. This weekend, Softpedia reported that ShapeShift was shutting down to rebuild its security infrastructure. Two other companies, CoinKite and BitQuick, were also forced to close and rebuild after cyberattacks earlier this year.



The information contained within this article was accurate as of April 12, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


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About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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