$91 000 USD

MAY 2012

NEW ZEALAND

BITCOINICA

DESCRIPTION OF EVENTS

"Today, we have discovered a suspicious Bitcoin transaction that doesn't seem to be initiated by any one of the company owners..." speculation has been that A. Vinnik was involved (same as Mt Gox, BTC-e) “On May 6, 2012, bitcoin exchange Bitcoinica announced that their hot wallet had been hacked. The exchange told users that they had “discovered a suspicious bitcoin transaction that doesn’t seem to be initiated by any one of the company owners.” The hot wallet hack was initially suspected to be linked to Bitcoinica owner A. Vinnik, leading some to suspect it was an exit scam.”

This shows a definite need for hot wallet insurance. Reduction in the level of funds stored in hot wallets would reduce the risk.

HOW COULD THIS HAVE BEEN PREVENTED?

This is a case where simply knowing who's holding the funds and storing them properly offline with multiple signatures would have avoided the issues.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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