BitPay Claims Hack Amounting to 5000 Bitcoins

According to the Atlanta Business Chronicle BitPay Chief Financial Officer Bryan Krohn's loose treatment of email credentials resulted in the transfer of 5000 Bitcoins from BitPay's control (archived). An adversary party who received the credentials from Krohn managed to send emails posing as Krohn which resulted in Chief Executive Officer Stephen Pair sending transactions of 1000, 1000, and 3000 Bitcoin to Bitcoin addresses outside of BitPay's control. BitPay's insurer declined to pay $950,000 requested by the firm to cover the loss. Whether this was an actual attack or internal embezzlement is unknown, and likely unknowable. This is just the latest in a string of problems for BitPay including layoffs, low return yet high cost marketing expenses, and their inability to convert Bitcoin users to retail consumer uses of their coins.

6 thoughts on “BitPay Claims Hack Amounting to 5000 Bitcoins

  1. — Send 5000 BTC here.

    — K. It's in an email. Seems legit.

    Never heard of gpg signatures.

  2. Maybe Bitpay should hire that one company that never lost any Bitcoin to hold its funds. Hint : that one started a week before Bitcoinica. Remember Bitcoinica ?

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