Hackers Steal $1 Million from Bitcoin Payment Processor BIPS

European Bitcoin payment processor BIPS recently announced that it was the target of a coordinated attack, as a result of which several customers’ wallets were breached (h/t Mashable).

“As a consequence BIPS will temporarily close down the wallet initiative to focus on real-time merchant processing business which does not include storing of Bitcoins,” the company said in a statement. “Subsequently BIPS will consider to reintroduce the wallet initiative with a re-architected security model.”

Mashable reports that the total amount stolen was 1,295 Bitcoins, currently worth over $1 million.

In a post at Bitcointalk.org, BIPS CEO Kris Henriksen wrote, “It is imperative to understand that everything was wiped out from our servers and getting functionality back is priority #1. The wallet part of BIPS was a free service to make payments easier for users. Web Wallets are like a regular wallet that you carry cash in and not meant to keep large amounts in. Hence we offered a paper wallet as a cold storage alternative for those who wanted a safe storage solution. … Most balances left are miniscule, but if you had more than a few satoshis in your wallet you are affected, and will be contacted.”

“Please be advised that attacks are not isolated to us and if you are storing larger amounts of coins with any third party you may want to find alternative storage solutions as soon as possible, preferably cold storage if you do not need immediate access to those coins,” Henrisksen added.

Jeff Goldman
Jeff Goldman
Jeff Goldman has been a technology journalist for more than 20 years and an eSecurity Planet contributor since 2009.

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