BitPay suffered a loss of 5,000 BTC from computer hack

[DarkHeretic]

The computer hack, known as spear phishing, occurred last December. The target of the hack was Mr. Krohn, who was deceived by the hacker to divulge his credentials, which led to a total loss of 5,000 BTC from three successive withdrawal request attempts.

BitPay’s insurance company, Massachusetts Bay Insurance Company, refused to pay on a claim for US$950,000 by BitPay in June.

 

[Stereotype]

Thats quite something.

Of course, now we want to know the details of the technique used, and how does a key holder let it happen three times.

 

[cypherdoc]

That's gotta be incredibly embarrassing. They're some of the best in our industry.

 

[Beanow]

Even more astounding. Why does one store 5k BTC in a single online account rather than cold storage?

Might as well put your money in a sock and hide it in a bush of a public park.

 

[Stereotype]

Wow. Truly embarrassing to read how stupidly easy this was to carry out. If theres ever an example of lazy complacency, this would be it.....

http://motherboard.vice.com/read/how-a-clever-hacker-tricked-a-major-bitcoin-company-out-of-18-million

 

[Fiat_Hodler]

Expensive lesson....