Explore the latest news and trends  

Sign up for our weekly security newsletter

Be the first to receive important updates on security


Trader of Cryptsy Bitcoin Robbed and Blames Backdoor in the Code of a Wallet

Cryptsy, Cryptocurrency exchange, which does trading of bitcoins along with over 100 kinds of "altcoins" like namecoin and litecoin, disclosed on 15th January that it was robbed in 2014. The exchange has now suspended all trades because of the breach, and says that it will file for bankruptcy if it does not get back its stolen bitcoins.

Having investigated internally, the team of Cryptsy concluded that "the Lucky7Coin developer had placed an IRC backdoor into the code of wallet, permitting it to act like Trojan, or command and control unit".

Prior to this incident on 22nd May, 2014, the Cryptsy team received an email from a person called Jack, informing the Bitcoin trader that he has taken over the improvement of the Lucky7Coin (LK7) from its original author.

Cryptsy suspects that the original developer of Lucky7Coin is not responsible for this, but someone called "Jack" who contacted Cryptsy on 22nd May, 2014, claiming that he has taken over the improvement of the cryptocurrency codebase and related code might be responsible for this.

The team of Cryptsy explained: "Some may inquire as to why we did not report to the authorities at the time of occurrence, and our answer will be that we were not aware of what actually happened and also did not want to create panic. Moreover, we did not know surely whom to contact."

Cryptsy is now asking the Bitcoin community for help since authority is not helping them. The site has announced a reward of 1,000 bitcoin to anyone who can reveal the identity of the culprit of this attack.

Softpedia posted on 16th January, 2016, stating that additionally, the site is still thinking whether to file for bankruptcy or to wait for someone to buy their services and refund to users.

Alternatively, the site is promising not to take any legal action against the person behind this attack if he/she "confesses" that it was just a mistake and returns the stolen fund.

Cryptsy announced to suspend the trading and withdrawing for indefinite period till the situation is resolved.

ยป SPAMfighter News - 1/21/2016

3 simple steps to update drivers on your Windows PCSlow PC? Optimize your Slow PC with SLOW-PCfighter!Email Cluttered with Spam? Free Spam Filter!

Dear Reader

We are happy to see you are reading our IT Security News.

We do believe, that the foundation for a good work environment starts with fast, secure and high performing computers. If you agree, then you should take a look at our Business Solutions to Spam Filter & Antivirus for even the latest version of Exchange Servers - your colleagues will appreciate it!

Go back to previous page