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Bitcoin the leading exchange firm lost its bitcoins after many of its wallets were hacked on Monday. The incident was instantly reported to police when Bitcoin team was checking all the wallets. The total approximate money stolen is Rs. 20 crores making a total of 440 bitcoins.

Bitcoin collapsed by biggest theft of Cryptocurrency

 

This is the biggest theft of cryptocurrency reported till now. Bitcoin has more than two lakh users all across the country.

 

 

What is Cryptocurrency?

The cryptocurrency is created and is electronically stored in blockchains. Blockchains are a list of continuous growing records called block and are linked and protected using cryptography. It’s a digital currency and its units are mined through the complex.

How does the Cryptocurrency work?

The encryption techniques are used to control the creation of all the monetary units. The mathematical calculations are used to verify the transfer of funds. These currencies can be stored in the third party exchange firm which behaves like a bank. It can also be held by its private users. This exchange firm keeps all these digital currencies in the electronic wallet having multiple layer security codes.

How these currencies can be stolen?

  • Phishing technique is the only way by which a Bitcoin user can lose his user ID and passwords.
  • Only an employee can help the hacker to get into the exchange firm wallet.
  • Frauds take place when the real money is stolen and the fake cryptocurrency is revealed to the users.
  • Sellers and buyers develop different ways to hide their identity and IP address. It makes difficult for hackers to track them.

The incident is already confirmed by the senior officer of Delhi Police’s Cyber Cell who said that the secure Bitcoin trader firm known as Coinsecure reported the incuident to the police. The case is registered by the police under the section 66 of the IT Act and IPC sections.

According to the police, a senior security officer of Bitcoin found that all the offline stored bitcoins are stolen. Later in the investigation, it is found that the private keys which are the password kept by Bitcoin to store the offline money are hacked.

The Bitcoin tried to trace the hackers but found nothing as all the details regarding the data logs of the theft wallets are erased. They have no idea where the bitcoins are stolen from. With this news, the website of the Bitcoin was kept close since Monday. It was yesterday when the Bitcoin company confirmed about the theft to its users by posting a message on their website.

Message displayed by Bitcoin on its website

“We regret to inform you that our bitcoin funds have been exposed and seem to have been siphoned out to an address that is outside our control. Our system itself has never been compromised or hacked, and the current issue points towards losses caused during an exercise to extract bitcoins to distribute to our customers,”

Bitcoin founder and CEO Mohit Kalra

According to the Bitcoin founder and CEO Mohit Kalra, the details have been leaked by somebody from inside the company. He further said that the private keys were never uploaded online so there was no possibility for it to get hacked. Somebody from inside has share those private keys. He has taken the help of Cyber Cell and some specialist in order to trace the address of these hackers and to trace the bitcoins.

The servers of the company have been seized by the police in order to check if more wallets are hacked or not? The police team is also investigating with the senior security officer of the company Bitcoin. In the police investigation, it was found that the private keys which were never shared online according to the Bitcoin CEO were kept online for almost 12 hours. Malware infection can also be the reason for this hacking.

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