Hackers seize $1.2m in Bitcoins from digital wallet service

Hackers raided a digital wallet service and stole $1.2m worth of Bitcoins, in the latest of a series of scandals to plague the digital currency.

Hackers raided a digital wallet service and stole $1.2m worth of Bitcoins, in the latest of a series of scandals to plague the digital currency.

Inputs.io was comprised 26 October, but it was 7 November before site developers admitted hackers had stolen 4,100 Bitcoins. The attack represents a huge embarrassment for the company as it boasts a list of 20 security measures on its website and claimed it had "never been hacked for months, a rarity in the Bitcoin world".

An online message on Inputs.io said: "Two hacks totalling about 4100 BTC have left Inputs.io unable to pay all user balances. The attacker compromised the hosting account through compromising email accounts.

"Database access was also obtained, however passwords are securely stored and are hashed on the client."

The digital wallet service was able to claw back some Bitcoins and is dividing them amongst customers based on how much they had stored, but does not have enough to pay users in full.

Inputs.io said: "I know this doesn’t mean much, but I’m sorry, and saying that I’m very sad that this happened is an understatement."

The incident follows in the wake of another crisis, when Bitcoin value slumped from $145 per coin to $123 after the FBI closure of black market site Silk Road. However the digital currency bounced back.

At the time of writing, Bitcoin value was $342.9 per coin, an all time high.

 

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