BITCASH.CZ

DESCRIPTION OF EVENTS

“According to Czech news site E15.cz, some 4,000 bitcoin wallets had been opened with Bitcash.cz, with a total value of over 2 million Czech koruna (roughly equivalent to $100,000).” “according to site owner Karel Minx, the entire balance of Bitcoins, including all users' wallets, the "coin vault" and the "escrow sub-account," was emptied (h/t Softpedia).”

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It would appear that this is a simple case where cold storage was not utilized at all. Instead, all of the funds were likely stored in a hot wallet, and this hot wallet was breached. From what I have read, the owner appears to have been doing his best to run a legitimate business operation, and simply lacked the education and technical know-how to properly secure the funds, nor the foresight to establish a contingency plan.

Bitcash.cz exchanged hacked. 4000 BTC stolen. : Bitcoin (Feb 15)
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Hackers attacked Czech bitcoin exchange and emptied users' wallets (Feb 15)
Bitcash.cz hacked (Feb 15)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15)

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