Hacks and Incidents

Bitcoin Thefts Surge, DDoS Hackers Take Millions

Bitcoin Thefts Surge, DDoS Hackers Take Millions: Earlier this month, for example, Bitcoin Internet Payment System (BIPS), a Denmark-based Bitcoin payment processor, suffered a denial-of-service (DDoS) attack. Unfortunately for users of the company’s free online wallets for storing bitcoins, the DDoS attack was merely a smokescreen for a digital heist that quickly drained numerous wallets, netting the attackers a reported 1,295 bitcoins — worth nearly $1 million — and leaving wallet users with little chance that they’d ever see their money again.

“On November 15th BIPS was the target of a massive DDoS attack, which is now believed to have been the initial preparation for a subsequent attack on November 17th,” Kris Henriksen, the CEO of BIPS, said via Reddit. “Regrettably, despite several layers of protection, the attack caused vulnerability to the system, which has then enabled the attacker/s to gain access and compromise several wallets.”

BIPS has been conducting a digital forensic investigation and working with authorities to try to identify the perpetrators. It said that early results showed that the attack originated “from Russia and neighboring countries.”

The BIPS heist followed two separate October attacks against Australia-based Inputs.io, in which attackers netted about $1.3 million in bitcoins after stealing all 4,100 bitcoins being held by the free e-wallet service.

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