Bter Promises to Payback All Its Users despite losing $1.75 million in crypto-currency to hackers

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Bter Promises to Payback All Its Users despite losing $1.75 million in crypto-currency to hackers

Though Bter lost $1.75 million in crypto-currency to hackers, it is promising that it will payback its valuable customers. The China-based Bitcoin exchange has announced that it will continue to operate its services as well. Looks like unlike other Bitcoin exchanges like Mt. Gox that never looked back to pay the investors once they lost their money, this is an honest effort.

When in August the last year Bter lost $1.75 million in crypto-currency to hackers, the observers had thought that it was an end to the operation of the Bitcoin exchange. However, now it is trying to emerge from the ashes like Phoenix as it says that it managed to trace the stolen 7,170 BTC to a Bitcoin mixer, a crypto-currency laundering service called Bitcoin Fog.

It was indeed tough for Bter to operate after losing $1.75 million in crypto-currency to hackers; however, later on it did a course-correction and partnered with Jua.com, a Bitcoin wallet service that claims to offer enterprise-class storage, to review the security code on its platform and to rebuild the back-end.

As online Bitcoin wallet have been unsafe for Bitcoin users and even for the companies, Bter has entrusted its cold (offline) wallets to Jua.com and plans to eventually hand over its hot wallet services for deposit and withdrawal to the latter as well. The release from the firm says that Bter has learned a lot from its past experience.

For instance, to compensate its customers for losses that arose due to the recent breach, Bter will make payments in batches and additionally offer them half a year’s trading fee in proportion to their Bitcoin loss. The announcement says that all users will be allowed to trade Bitcoin for free for a month on Bter as a show of thanks.

Honest effort to Compensate Customers by Bter

Nonetheless, the reports are also ripe that the company says it will use all its future profits from its Bitcoin exchange and upcoming businesses to first pay back users. Additionally, Bter claims to have had 230,000 registered users, including 130,000 from China. The large user base is definitely prompting the Bitcoin exchange to stay in the services.

The last two years have seen several hacking attempts on Bitcoin exchanges. Some exchanges like Mt. Gox could not sand up after hacking; however, from the experience of Bter, it looks right to claim that there is huge space for Bitcoin exchanges that are honest and think of their customers who lost their valuable investments Bitcoin hacking.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com