QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$220 000 USD
JULY 2011
POLAND
BITOMAT
DESCRIPTION OF EVENTS
“During a server restart, the remote Amazon service that housed Bitomat.pl’s wallet was wiped. No backups were kept, and Mt. Gox later bailed out Bitomat.pl. Ultimately, neither the exchange’s customers nor the original owners suffered any loss from the incident.”
In addition to protecting against unauthorized access, it’s important to build in redundancy. Using multi-sig with at least one additional spare signature means that any single loss of signature is unable to bring down the wallet.
HOW COULD THIS HAVE BEEN PREVENTED?
The use of multi-signature technology provides redundancy, and all operators should have training in how to safely store and manage private keys.
Infographic: An Overview of Compromised Bitcoin Exchange Events (Jan 29)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] (Jan 27)
100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents (Jan 24)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 14)
Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 4)
