27 March 2015

Hacked Bitcoin exchange Bitfloor reopens

28 September 2012  |  5353 views  |  0 business meeting room

Bitfloor, the Bitcoin exchange that shut down earlier this month after hackers compromised its servers and stole around $250,000 in the virtual currency, has reopened for trading.

In a Google+ post, founder Roman Shtylman has confirmed that the exchange is now back up and running after nearly a month out of action and sought to reassure users that security has been improved and that he plans to refund those left out of pocket.

Thieves managed to steal around 24,000 coins early this month after they "gained accesses to an unencrypted backup of the wallet keys" and used them to transfer the money.

Although users can start trading again, balances from before the hack are still on hold, with Shtylman promising that they will "be released in parts as we begin to recover funds to pay back balances". The money to pay people back will come from fees.

In a bid to prevent a repeat, Bitfloor has now changed its fund storage policy to 100% offline and daily transactions through its hot wallet will be backed by its own funds, not clients'.

The platform is also now running on dedicated servers in a PCI compliant data centre based in the US. Bitfloor services are further isolated based on exposure. Testnet and development are not located in the same data centre. Backups are encrypted and write only on all of the servers. Hot wallet files are encrypted even further and unavailable even with physical access to the disk.

Says Shtylman: "I am committed to keeping Bitfloor alive, strong, and growing for the Bitcoin ecosystem. I would like to say thank you to all of the support I have received pressing for the return of Bitfloor and the service it provided."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

05 September, 2012
04 September, 2012
23 August, 2012
13 August, 2012
14 May, 2012
07 March, 2012
20 February, 2012
27 July, 2011

Top topics

Most viewed Most shared
Banking has reached a digital tipping poin...
9130 views comments | 52 tweets | 29 linkedin
Google preps Gmail bill payment feature
4244 views comments | 12 tweets | 12 linkedin
Europe sets the pace as fintech investment...
4023 views comments | 24 tweets | 19 linkedin
Barclays and PayPal join Government ID acc...
3999 views comments | 10 tweets | 10 linkedin
Credit Suisse paper offers qualified bitco...
3950 views comments | 5 tweets | 9 linkedin

Featured job

Competitive
New York City, NY (USA)

Find your next job