Bitfloor Loses $250,000 Worth of Bitcoins in Hacker Attack

Bitfloor has suspended all operations following a hacker attack that made off with $250,000 worth of bitcoins. With not enough cash to cover its deposits, the company suspended operations while assessing the situation.

The irreversible nature of bitcoin transactions makes it difficult to trace the stolen bitcoins. One of Bitfloor`s founders posted on the official forum that he`s focusing on getting passed this event without causing too much panic within the community.

“Last night, a few of our servers were compromised. As a result, the attacker gained accesses to an unencrypted backup of the wallet keys (the actual keys live in an encrypted area),“ said Roman Shtylman of Bitfloor. “This attack took the vast majority of the coins BitFloor was holding on hand. As a result, I have paused all exchange operations“.

An IP address from the origin of the attack was also posted on the same forum, along with a transaction ID. The IP address appears to originate from Russia, but a proxy server could very likely have been used in the attack.

Multi-signature transactions could be the next step in boosting bitcoin transactions as Bitcoin developer Gavin Andresen and his team is working on a viable implementation of the model.