All the latest UK technology news, reviews and analysis


Bitcoin storage firm shuttered following hack

04 Apr 2013
treasure-chest-with-gold-coins

Bitcoin wallet company Instawallet was shut down following a backdoor hack on the firm's systems. The attack put a damper on the rapid rise of the virtual currency.

Instawallet is a storage center for the Bitcoins. The firm has yet to disclose the extent of the attack. However, the company has reported that it will begin to accept reimbursement claims from its users.

"The Instawallet service is suspended indefinitely until we are able to develop an alternative architecture," Instawallet wrote on their website.

"Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is."

Bitcoins are a virtual currency that is not controlled by a single governing entity. The currency is untraceable and many of its supporters rally around its independent nature. Bitcoins can be transferred without oversight and cashed-in for real-world money.

The currency was criticised likened to a narco-currency. Federal Bureau of Investigation (FBI) officials decried the system's potential to fund illegal activities last May.

However, Bitcoin transactions are also frequently used for above board payments. Earlier this year, Reddit announced that it would allow users to make payments to the firm using Bitcoins.

As of this writing, an individual Bitcoin can be cashed for over $132. The currencies value has rocketed over recent months. Since the beginning of this year Bitcoin's value has grown exponentially.

Instawallet has reported that it will begin to accept submissions for reimbursement over the next 90 days. Anyone who submits a claim for an account holding less than 50 Bitcoins are guaranteed a reimbursement.

Claims for damages greater than 50 Bitcoins will be processed on a case-by-case basis. At current values 50 Bitcoins would be worth over $6,000.

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
James Dohnert
About

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

More on Open Source
What do you think?
blog comments powered by Disqus
Poll

IT curriculum poll

With coding now compulsory in schools, how important are digital skills for the next generation of school leavers?
67%
8%
17%
8%

Popular Threads

Powered by Disqus
V3 Security Summit

V3 Security Summit Day 2: Botnet, skills and BYOD intelligence incoming

Keep V3 bookmarked for news updates on all the key security concerns and topics facing businesses

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv3may

Getting started with virtualisation

Virtualisation can help you reduce costs, improve application availability, and simplify IT
management. However, getting started can be challenging

ibmv3may

Converting big data and analytics insights into results

Successful leaders are infusing analytics throughout their organisations to drive smarter decisions, enable faster actions and optimise outcomes

SQL QlikView Developer (SQL, Qlikview, Agile, PHP, Java, Linux)

SQL QlikView Developer (SQL, Qlikview, Agile, PHP, Java...

Automation Test Analyst (C# Platform, Selenium, Automation, XML

Automation Test Analyst (C# Platform, Selenium, Automation...

Python Front Office Developer Quant

The purpose of the role is to work closely with traders...

Junior C++ Developer - Algo Trading

My client- one of the most successful high frequency...
To send to more than one email address, simply separate each address with a comma.