BIT LC

DESCRIPTION OF EVENTS

"This alleged theft was unique in that coins held in the hot wallet were safe, but coins held in a cold wallet compromised. The thief is not expected to have access to the coins regardless, so there was little financial gain from this theft. Erick, allegedly the only one with physical access to Bit LC Inc.'s cold wallet, has failed to communicate and withdraw coins. Bit LC Inc. therefore was required to declare bankruptcy. There is no proof that Erick intentionally stole the coins; indeed, some evidence asserts that he or she may simply have disappeared in some manner."

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Cold storage needs to be a proper multi-signature wallet with all keys stored completely offline. One person should not hold all the keys, especially an unknown person. There needs to be training in place to ensure that all operators are fully aware of best practices.

List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] (Jan 28)
Bit LC Inc. closing all services, effective immediately - Bitlc.net (Feb 4)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15)

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