Saturday, May 12, 2012

Bitcoinica Shutdown is Potentially Permanent

The latest from Zhou Tong in regards to yesterday's hack and the loss of over 18,000 Bitcoins:
- It's more serious than we thought. We need some additional time to come up with a compensation proposal.

- Likely we will either shut down the platform or re-develop entirely (which will take months instead of days).

- The preliminary decision: reimburse for the full amount, including margin balances and position P/L.

- The root cause of this problem is an email server compromise. The email server belongs to one of our team members.

- Reminder again: Please do not reuse your Bitcoinica passwords as the database server was compromised. Do not click any links in the email. All Bitcoinica announcements will be updated on Bitcoinica website when available.

Important Disclaimer: I'm not a partner of Bitcoinica LP after the corporate reorganisation. Therefore, I have no financial obligation in this matter as I'm only an employee of Bitcoinica LP responsible for daily operations (no shares, no voting). However, I'll do my best with the team to resolve this problem as quickly as possible and minimize the impact for the community. I appreciate your patience and understanding.

Sadly, these events are unfolding only 18 days after ownership of Bitcoinica was transferred to Intersango, who is now left holding the bag.

4 comments:

  1. Haha, good riddance.

    Take security more seriously next time, losers.

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  2. I really hope that the Intersango is not pulled down in any way by this. In my experience they provide a great service - not least for people based in Europe. IMhO, losing Intersango would be much more serious than losing Bitcoinica.

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  3. Intersango made a poor choice in acquiring Bitcoinica. They should suffer the consequences.

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  4. Lol Intersango always pride themselves on security which had been tarnished thanks to their email leak and now this immense screw up.

    I've never liked them as it seemed seedy to run a blog slagging off your competitors and actively hacking them to test their security.

    If they disappear it'd be better for Bitcoin.

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