| On 5 years ago

$5.7 Million worth of Bit- and Litecoins stolen from banker Cryptsy


After last week’s news about Mike Hearn selling all his bitcoins and stating the currency had failed, Bitcoin is yet again put in a bad light. Cryptsy, a website used for trading crypto-currencies such as Bitcoin and Litecoin, publicly announced it had been robbed of 13.000 bitcoins and 300.000 litecoins, accumulating a total loss of roughly $5.7 million.


The theft took place in July 2014, Cryptsy’s CEO Paul Vernon stated at first they didn’t report the theft due to plans of making up the discrepancy with bitcoin reserves. The culprit, developer Lucky7Coin as it seems, placed an IRC backdoor into the code of wallet, and the malicious code acted as a Trojan. The Cryptsy crew thinks the Trojan was in their system for about two months before the crack happened.


As icing on the cake, according to NewsBTC, Cryptsy possibly chooses to divide its 10.000 BTC accountability among the users if there won’t be a takeover of the company any time soon.


Bitcoin is on a downfall, but not all hope is given up. Allthough cases like this won’t do Bitcoin any good, some still see the light at the end of the tunnel. Security firm BitGo for example, recently launched BitGo Instant, which makes instant transactions possible, and also checks whether the coins have been spent before or not. BitGo Instant plans on preventing double-spending and increasing the speed of transactions.