01 October 2016
Find out more

Hacked Bitcoin exchange Bitfloor reopens

28 September 2012  |  6109 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)

Finextra news in your inbox

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

Related stories

Bitfloor exchange shuts down after $250,000 heist

Bitfloor exchange shuts down after $250,000 heist

05 September 2012  |  5273 views  |  0 comments
US State Representative adopts Bitcoin donation system

US State Representative adopts Bitcoin donation system

04 September 2012  |  12290 views  |  2 comments | 1 tweets
BitInstant confirms Bitcoin card plans

BitInstant confirms Bitcoin card plans

23 August 2012  |  7950 views  |  0 comments
Users sue Bitcoin exchange over $460k in missing funds

Users sue Bitcoin exchange over $460k in missing funds

13 August 2012  |  7104 views  |  0 comments
Bitcoin exchange loses $90,000 in virtual currency hack

Bitcoin exchange loses $90,000 in virtual currency hack

14 May 2012  |  8895 views  |  0 comments
Bitcoin exchange TradeHill sues Dwolla

Bitcoin exchange TradeHill sues Dwolla

07 March 2012  |  7538 views  |  0 comments
Paxum ditches Bitcoin as Tradehill exchange shuts down

Paxum ditches Bitcoin as Tradehill exchange shuts down

20 February 2012  |  9339 views  |  0 comments
US customs agents turn away Bitcoin-dependant visitor

US customs agents turn away Bitcoin-dependant visitor

27 July 2011  |  11046 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit dh.comVisit VocaLink.comVisit i2cinc.com

Top topics

Most viewed Most shared
Ripple rudely gatecrashes Sibos partyRipple rudely gatecrashes Sibos party
11238 views comments | 35 tweets | 33 linkedin
BNP Paribas is working with clients on blockchain deploymentBNP Paribas is working with clients on blo...
8132 views comments | 15 tweets | 31 linkedin
Banks ready for real-world blockchainBanks ready for real-world blockchain
7186 views comments | 22 tweets | 29 linkedin
PayPal and Lenovo team on biometric authentication for laptopsPayPal and Lenovo team on biometric authen...
6837 views comments | 13 tweets | 16 linkedin
Distributed ledger technology could damage financial market integration - ECBDistributed ledger technology could damage...
6320 views comments | 15 tweets | 10 linkedin

Featured job

Find your next job