Establishing Digital Trust: Don't Sacrifice Security for Convenience
Bitcoin exchange Bitcash.cz, based in the Czech Republic, was recently hacked -- according to site owner Karel Minx, the entire balance of Bitcoins, including all users' wallets, the "coin vault" and the "escrow sub-account," was emptied (h/t Softpedia).
"No matter how good I can be in applications, there will always be (and obviously is) someone better at security," Minx wrote in a statement on the site. "I take it as a personal failure, of course, even though Bitcash worked for more than two and a half years without any problem."
Still, Minx noted, he had always warned users to be aware of the risks, and that Bitcash always noted that users' balances were not guaranteed. "Last 48 hours for me was of course a great lesson," he wrote. "Threatening e-mails, shame in the media, explaining to the police, advocacy before the members, etc. Requests for more information, of course, I understand, but I cannot meet them due to the criminal complaint (with the associated NDA) and the ongoing investigation."
Minx said the future of Bitcash.cz will be decided in the coming days and weeks.
According to Coindesk, Bitcash.cz customer Ales Janda has estimated that the thieves got away with 485 Bitcoins, currently worth approximately $200,000.