BitMarket.eu Custodian Failure - Revision history

Azoundria at 19:13, 14 March 2025

2025-03-14T19:13:24Z

← Older revision		Revision as of 13:13, 14 March 2025
Line 52:		Line 52:
	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
Line 89:		Line 92:

	== References ==		== References ==
	<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>		<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Accessed Jan 25, 2020)</ref>

	<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref></references>		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Accessed Mar 5, 2020)</ref></references>

Azoundria at 23:52, 12 April 2023

2023-04-12T23:52:06Z

← Older revision		Revision as of 17:52, 12 April 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a complex legal framework and unavailable for the general public, it makes it impossible for useful decisions to be made.		One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a complex legal framework and unavailable for the general public, it makes it impossible for useful decisions to be made.

	This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.		This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />
	<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />

	== About BitMarket.eu ==		== About BitMarket.eu ==
Line 45:		Line 44:
	!Description		!Description
	\|-		\|-
	\|December 1st, 2012 12:00:14 AM		\|December 1st, 2012 12:00:14 AM MST
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 72:		Line 71:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Coming soon.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	~~Coming soon.~~		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 20:53, 15 February 2023

2023-02-15T20:53:09Z

← Older revision		Revision as of 14:53, 15 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}}
			{{Unattributed Citations}}

	One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a complex legal framework and unavailable for the general public, it makes it impossible for useful decisions to be made.		One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a complex legal framework and unavailable for the general public, it makes it impossible for useful decisions to be made.

	This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.		This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.
			<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />

	== About BitMarket.eu ==		== About BitMarket.eu ==
Line 23:		Line 25:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 45:		Line 46:
	\|-		\|-
	\|December 1st, 2012 12:00:14 AM		\|December 1st, 2012 12:00:14 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 58:		Line 55:

	== Total Amount Lost ==		== Total Amount Lost ==
	$400 000 USD		The total amount lost has been estimated at $400,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Line 68:		Line 66:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~$0 USD~~		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?

Line 78:		Line 77:

	== References ==		== References ==
	[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)		<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}} One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a..."

2023-01-21T06:19:25Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}} One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bitmarketeucustodianfailure.php}}

One of the great concerns is these kinds of cascading failures, where one firm stores funds with another. This is precisely why a complex regulatory framework forcing a custodian model can increase risks of one failure cascading to another. Transparency about where funds are stored can alert traders to any potential risks. When this information is buried inside a complex legal framework and unavailable for the general public, it makes it impossible for useful decisions to be made.

This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.

== About BitMarket.eu ==
"Bitmarket.eu used to be a Bitcoin exchange run by two Polish developers. The developers, Maciej Trebacz and Pawel Makulski operated the exchange platform for about two years before it became a victim of a hacking incident." ... "As Trębacz explained on a BitcoinTalk forum post, BitMarket wasn't to blame for this incident. He says he decided to set up a Bitcoin hedge fund... using the services of Bitcoinica...Unfortunately, Bitcoinica itself got hacked in May 2012, losing all of BitMarket's funds along the way…” “The updates on Bitcoin Talk show that a significant number of Bitmarket.eu users received a portion of their funds back.”

This exchange or platform is based in Poland, or the incident targeted people primarily in Poland.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - BitMarket.eu Custodian Failure
!Date
!Event
!Description
|-
|December 1st, 2012 12:00:14 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
$400 000 USD
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
$0 USD
What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Coming soon.

== References ==
[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)

[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)