KIPCOIN

DESCRIPTION OF EVENTS

“Another Chinese based exchange has apparently lost its user’s funds. The Chinese Bitcoin exchange Kipcoin is not as well known as Huobi and OKcoin, but it apparently had a lot of bitcoins to lose. The Chinese exchange announced that it lost some or all of its user’s bitcoins and will temporarily be shutting down.” "In a statement the company released through the Chinese social media website Weibo, they mentioned that they will put all their services on hold temporarily. In this post, it was also mentioned that no Chinese Yuan were stolen from the accounts." “The hacker apparently gained access to Kipcoin’s server back in May and downloaded the wallet.dat file at that time. For months, according to Kipcoin, the hacker did nothing with the funds before beginning to move them in December 2014. It is not clear why the site didn’t secure its funds at that time.” “The site says it will come back online and will then allow withdrawals of the other digital currencies it held: Litecoin and Dogecoin. Its holdings in Yuan are safe and will presumably be used to pay back users in Bitcoin eventually. Before that can be done however, the exchange says it needs to collaborate with law enforcement in finding the hacker.”

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It appears obvious that this issue occurred due to the improper storage of funds. The operation also highly lacked transparency, promised a high rate of return, and it is unclear whether funds were ever backed to begin with.

100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents (Jan 25)
Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5)
Chinese Exchange KipCoin Has Been Hacked - Coinjournal (Mar 14)
SlowMist Hacked - SlowMist Zone (Jun 26)

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