Author Topic: Flexcoin Hacked!  (Read 881 times)

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Offline CoinChilli

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Flexcoin Hacked!
« on: March 05, 2014, 05:49:06 PM »
Flexcoin, the self-described “first bank of Bitcoin” was hacked on the 2nd of March, suffering a catastrophic loss of 896 Bitcoins (valued at around $600,000 USD). Flexcoin has since closed its doors.

“In our ~3 years of existence we have successfully repelled thousands of attacks. But in the end, this was simply not enough” –Announcement from the Flexcoin website.

The theft was enabled from the front-end. The attacker(s) logged into Flexcoin under newly created username and deposited Bitcoins to a specific address. The coins were then left until they had reached six confirmations. A flaw in the code which allows transfers between users was then exploited by sending thousands of simultaneous requests. the attacker was able to “move” coins from one user account to another until the sending account was overdrawn, before balances were updated...

Read more at:

J.C Axe

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Re: Flexcoin Hacked!
« Reply #1 on: March 05, 2014, 05:57:48 PM »
Another reason to not leave a considerable amount of coins in an online wallet, these days anything and any website can and will be hacked.

Encrypt and make a backup copy of your offline wallets .dat file to an offline device.

Offline teoaawki

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Re: Flexcoin Hacked!
« Reply #2 on: March 05, 2014, 07:16:58 PM »
This HAS to be remedied for POS transactions. 

Brick and Mortar businesses will NOT participate in something that poses a threat of theft.  Businesses carry insurance in case they are victims of theft.  Insurance companies will NOT insure crypto-currency at the current time, so if we are to develop relationships down the road we NEED to have the value of security built for our users.
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