$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.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

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

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