Visiting the official website, the visitors read the notice: “Coinapult is investigating a compromise of its hot wallet. Customers should NOT SEND Bitcoin to existing Coinapult addresses starting IMMEDIATELY. This includes Lock Addresses (automatic lock address). Updates will be provided here as they become available.”
The notice indicates that Coinapult that provides users get the value of their Bitcoin in fiat has been hacked. Reportedly, the Bitcoin company has lost more than 150 Bitcoin which roughly translate into $43,000 USD. Nonetheless, as access to the site was disabled on Tuesday, the users have been stopped from any transactions.
Currently, the site has disabled withdrawals and posted the above mentioned notice. Though it is a relatively small amount of money for a company of this size, this is probably the least of the problems. The biggest problem is determining how and potentially who conducted the successful hack as it can be a major issue for its credibility regarding providing Bitcoin safety.
Nonetheless, as the coins were transferred several hours prior to the service halt on Tuesday morning, and had yet to move from that address, the hack may have been in progress for as long as two weeks. The sources inform that the outage that took place over the weekend and subsequent plans to move data services elsewhere may have been incentive for the attacker.
Interestingly, the company has updated that it has the situation contained and all funds (minus the 150 BTC withdrawn last night) are safe. According to the updated status at the homepage of the website it says that investigations are ongoing to determine the method of attack which it sees a major issue that mere loss of 150 Bitcoin.
The Company Will Reimburse the Investors
However, the updated notice also mentions that until it is able to determine and patch the attack vector, it will not re-enable its services. Additionally, if this takes more than a few days, it will refund customers manually. Reports are that the hacking is could be indicative of a well-intentioned hacker who intends to return the coins.
It is being reported that the hacking could also be indicative of a hacker who intends to blackmail the site for the return of the coins, in exchange for something else. Another narrative is that Bitcoin hacking could just be the hacker hasn’t decided where to send them or what to do with them yet.
To contact the reporter of this story: Deepak Tiwari at email@example.com