MYBITCOIN

DESCRIPTION OF EVENTS

“The pseudonymous operator of Mybitcoin acknowledged: “We’ve concluded that around 1% of the users on the leaked Mtgox password file had their Bitcoins stolen on MyBitcoin.” In total, 4,019 BTC worth $72,000 were stolen, with Mybitcoin covering their losses.”

It turns out that many users of Mt. Gox shared the same username/password combination on MyBitcoin. Let this be a reminder to use unique username/passwords on each site and 2FA if you don’t already. MyBitcoin covered losses for users in this incident.

HOW COULD THIS HAVE BEEN PREVENTED?

The primary way to prevent this situation is through the use of proper two-factor authentication. There are multiple solutions widely available and in use on modern exchanges, and operators should be well aware of the risks through greater education.

Check Our Framework For Safe Secure Exchange Platforms

List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] (Jan 28)
List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15)
The biggest scams in Bitcoin history (Feb 15)
Inside the Mega-Hack of Bitcoin: the Full Story - DailyTech (Feb 2)
First Bitcoin Withdrawal Transaction - Blockchain.com (Feb 1)
Tom Williams on MyBitcoin account breaches (Feb 2)
MyBitcoin - Bitcoin Wiki (Apr 13)
Full text of "MyBitCoin" - Archived FBI Report From August 17th, 2011 (Jan 30)
e wallet - When was MyBitcoin created? - Bitcoin Stack Exchange (Jan 30)
mybitcoin down or just me? - BitcoinTalk Forum (Jan 30)
MyBitcoin.com Is Back: A Week After Vanishing With at Least $250 K. Worth of BTC, Site Claims It Was Hacked - Observer (Jan 30)
BuyBitcoinsWorldwide Historic Bitcoin Price Chart (Jan 30)
Nevis - Wikipedia (Jan 30)
Bruce Wagner On Use of MyBitcoin - BitcoinTalk (Jan 30)
MyBitcoin Incident Report - August 5th 2011 (Jan 31)
Largest Exploit Transaction - Blockchain.com (Feb 6)
Last Blockchain Transaction - Blockchain.com (Feb 6)
Jine's Response - BitcoinTalk Forum (Jan 31)
 (Jan 16)

More case studies

Mt. Gox
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Bitomat Exchange
Wallet.dat File Deleted