Oct 2011 - Bitcoin7 Exchange Hack/Fraud - $50k (Unknown)
“Bitcoin7 was a business operating in 2011 that was once the third-largest BTC/USD exchange behind Tradehill and Mt Gox. On October 5, 2011, the company reported a theft of 5,000 BTC allegedly stemming from a group of Russian hackers. However, many believe the breach was an inside job and employees ran off with the funds. The Bitcoin7 domain was later sold for $10,000 USD in 2013, but has been offline ever since this incident.”
Further Analysis
Once again, this is a case where the official story is unverifiable and the identities of the operators are unknown. Sources claim that Bitcoin7 had quite high withdrawal fees, which support the narrative.
How Could This Have Been Prevented?
This is a another case where simply knowing who's holding the funds and storing them properly offline with multiple signatures would have avoided the issues.
More Cryptocurrency Exchange Hacks/Scams/Frauds
Mt. Gox Coins Destroyed > > < < MyBitcoin Exchange Hack/Fraud
Sources/Further Reading
The Bitcoin Exchange Thefts You May Have Forgotten | Featured Bitcoin News (Jan 29)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] (Jan 28)
The biggest scams in Bitcoin history (Feb 15)
100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents (Jan 25)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15)
Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5)
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