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An Australian Bitcoin “bank” owner reported 4,100 Bitcoins, worth a total of $1.3 million USD, stolen from his digital wallet. The owner claims the thieves broke into his site, inputs.io, on October 23rd and 26th and proceeded to steal the currency. The owner has continued to deny all accusations that the theft was an inside job.

A message on inputs.io explained and apologized to those using the digital currency bank.

“The attacker compromised the hosting account through compromising email accounts (some very old, and without phone numbers attached, so it was easy to reset). The attacker was able to bypass 2FA [two-factor authentication] due to a flaw on the server host side. I know this doesn’t mean much, but I’m sorry, and saying that I’m very sad that this happened is an understatement.”

Currently, reporting a thefts such as this to the police does little good. The Bitcoin currency leaves no conventional audit trail, lacks regulation, and is practically untraceable.

Original article by John E Dunn.
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