Bitcoin7 Hacked, Losing 5000 BTC

Summary

On October 5, 2011, Bitcoin7, a cryptocurrency exchange, suffered a security breach that resulted in the loss of approximately 5,000 BTC. The attack was facilitated by a combination of weak security practices and system vulnerabilities, which allowed the attackers to gain unauthorized access to the exchange’s hot wallet. Bitcoin7 claimed to have compensated affected customers and improved security measures following the attack, resuming normal operations within a few days.

Attackers

While the attackers behind the Bitcoin7 hack remain unidentified, Bitcoin7 claimed that the attack originated from Russia and Eastern Europe.

Losses

Bitcoin7 lost around 5,000 BTC during the attack, worth approximately 32,500 USD at the time of the attack.

Timeline

• October 5, 2011: Bitcoin7 announces the hack on their platform and the extent of the losses, with around 5,000 BTC stolen. They revealed that their hot wallet was compromised, leading to the theft of funds on the exchange.
• October 7, 2011: Bitcoin7 resumes platform operations.

Security Failure Causes

Weak security practices: Bitcoin7 attack can be attributed to a combination of weak security practices and possibly system vulnerabilities. Private Key Compromise: The attackers were able to gain unauthorized access to the exchange’s hot wallet and steal the funds.