Bitcoin boom: The side effects
Basudha Das December 10, 2017
Bitcoin prices have been on a bull run but the higher it rises, higher are the risks and possibilities of your account getting hacked. Bitcoin has touched an intra-day high of $14,362 continuing its epic rally.
Allinvain (Twitter handle) loses $500,000 in bitcoin to hackers
Bitcoin wallet services offer to store bitcoins on users' behalf. One such service, MyBitcoin, disappeared from the Web, claiming the site was hacked. With no regulation in place, users could never verify where their money went.
Hackers steal at least 46,703 bitcoins, worth $200,000 then from online web host Linode. Most coins were stolen from Bitcoinica, an early Bitcoin exchange. It again suffered a second hack in May 2012 that cost the company another 18,000 bitcoins.
The Bitcoin Savings and Trust was a classic Ponzi scheme, with a promise of high returns - 7% per week. The scheme shut down in August 2012, after its organiser Tendon Shavers was accused of raising more than 700,000 bitcoins from gullible customers.
Bitcoin exchange, Bitfloor, suffered a big loss after hackers stole 24,000 bitcoins. Bitfloor did not have $250,000 in reserves, so the theft effectively made the exchange insolvent.
Popular Bitcoin exchange Bitstamp lost around 19,000 bitcoins, then worth about $5 million. It remains a leading Bitcoin exchange even today.
Another Bitcoin exchange, Bitfinex, announced that hackers had stolen $77 million worth of bitcoins. The company asked its customers to take a 36% cut in the value of their deposits. The exchange still deals in Bitcoins.
Bitcoins worth $70 million were estimated to have been stolen from NiceHash, according to the Wall Street Journal. Hackers allegedly stole 4,736 bitcoins from a NiceHash digital wallet