exchange hacked

Posted by Rob on 21 November 2013 | Comments

According to Coindesk, the polish Bitcoin exchange Bidextreme has been hacked and all crypto currency has been taken.

This is another example of lazy programming and security around Bitcoin services. To store all your businesses Bitcoins live on the webserver is just stupid. This isnt the first time we've seen it happen, and unfortunately it wont be the last.

Basic Bitcoin security procedures, such as storing the majority of the bitcoins offline, and in multiple wallets, could have prevented some / all of the coins from being taken. Websites are always being hacked, so this is nothing new. What is new is how valuable the reward for hacking a website is now.

A potential solution to this problem would be to develope an auditing system of  "Bitcoin security levels". Businesses could then pay to be audited by the Bitcoin security auditers, so achieve a level of security. This could then enhance the trust for businesses that make the effort to secure their websites properly.