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Withdrawal vulnerabilities enabled bitcoin theft from Flexcoin and Poloniex

Hackers found security weaknesses that allowed them to overdraw accounts with Flexcoin and Poloniex, two websites that facilitate bitcoin transactions, and exploited them to steal bitcoins from the two services. The attacks put Flexcoin out of business and cost Poloniex’s users 12.3 percent of their bitcoins.

Flexcoin, which described itself as the “world’s first bitcoin bank,” announced Monday that it was closing down after hackers stole 896 bitcoins worth around $600,000 from its “hot wallet”—a bitcoin wallet connected to the Internet. The company released more details about the hack in an update posted on its website late Tuesday. [link]

ussusimiel wrote:Looks like Bitcoin got stung again:

Withdrawal vulnerabilities enabled bitcoin theft from Flexcoin and Poloniex

Hackers found security weaknesses that allowed them to overdraw accounts with Flexcoin and Poloniex, two websites that facilitate bitcoin transactions, and exploited them to steal bitcoins from the two services. The attacks put Flexcoin out of business and cost Poloniex’s users 12.3 percent of their bitcoins.

Flexcoin, which described itself as the “world’s first bitcoin bank,” announced Monday that it was closing down after hackers stole 896 bitcoins worth around $600,000 from its “hot wallet”—a bitcoin wallet connected to the Internet. The company released more details about the hack in an update posted on its website late Tuesday. [link]

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