Bitcoin exchange service hacked again, losing $87,000

Hackers recently targeted Bitcoinica, an exchange service for the peer to peer virtual currency Bitcoins, and stole more than $87,000 worth of Bitcoins. The company said in a blog post that all money will be repaid, but it does bring back up the security issues involved with Bitcoins.

On June 29, 2011, DVICE writer Evan Dashevsky mirrored a thought many had in this post explaining Bitcoins: "It certainly needs to work on its security."

This seems to hold some weight, since this is the second time in 10 weeks that Bitcoinica was hit by hackers. The service lost $210,000 worth of Bitcoins in March, and last June a man allegedly lost $500,000 worth of Bitcoins to online thieves.

In addition to the lost currency, hackers also took a gander at users' usernames, information and encrypted passwords, which can't mean anything positive for the folks who are registered on Bitcoinica. The one upside is that documents that legally verify users' identities are kept on a separate server and weren't hit by the attack.

Again, the company said it would repay the lost money.

"The thief stole from us not you," stated Bitcoinica's blog post on the matter. "All withdrawal requests will be honored."

After the March breach, lead Bitcion programmer Gavin Anderson said he is working on improving the system to required multi-signature transactions, thus preventing thieves from doing exactly what they just did.

Time will tell if this happens any time soon. Until then, be careful when using Bitcoins.

Via ars technica

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