QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$50 000 USD
OCTOBER 2011
UNKNOWN
BITCOIN7
DESCRIPTION OF EVENTS
“Bitcoin7 was a business operating in 2011 that was once the third-largest BTC/USD exchange behind Tradehill and Mt Gox. On October 5, 2011, the company reported a theft of 5,000 BTC allegedly stemming from a group of Russian hackers. However, many believe the breach was an inside job and employees ran off with the funds. The Bitcoin7 domain was later sold for $10,000 USD in 2013, but has been offline ever since this incident.”
Once again, this is a case where the official story is unverifiable and the identities of the operators are unknown. Sources claim that Bitcoin7 had quite high withdrawal fees, which support the narrative.
HOW COULD THIS HAVE BEEN PREVENTED?
This is a another case where simply knowing who's holding the funds and storing them properly offline with multiple signatures would have avoided the issues.
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List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15)
Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5)
