Distributed Networks Institute
BTER lost $1.75 million worth due to a cold wallet hack
Summary
BTER, a China-based digital currency exchange, experienced a significant security breach on February 14, 2015, losing 7,170 bitcoins valued at approximately $1.75 million. The attack targeted the exchange’s cold wallets. The company has suspended its services and is collaborating with law enforcement to investigate the incident. BTER has also offered a 720 BTC reward, approximately $170,000, for assistance in recovering the stolen funds.
Attackers
The identity of the hackers who attacked BTER is unknown.
Hacker Bitcoin Wallet:
Losses
BTER lost 7,170 bitcoins worth $1.75 million
Timeline
- February 14, 2015, 04:32:26 AM +UTC: Malicious transaction was executed and 7,170 bitcoins were stolen from a cold wallet.
- February 18, 2015, 09:58 AM +UTC: The BTER exchange reported that 7,170 bitcoins were stolen and announced a reward of 720 bitcoins for the return of the stolen funds.
- February 20, 2015: BTER announced that it did not have enough funds to compensate all of its users after the hack.
- March 12, 2015, 10:05 AM +UTC: BTER announced that markets are open again and withdrawals are available. The exchange partnered with security company Jua and created a plan to refund affected users.
Security Failure Causes
- Private Key Compromise: The breach occurred due to a vulnerability in BTER’s cold wallet system. The exact nature of the vulnerability has not been disclosed, and it remains unclear how the cold wallet was accessed by unauthorized parties.