Cryptsy Bitcoin Trader Robbed, Blames Backdoor In the Code of a Wallet (softpedia.com)

Posted by timothy on Friday January 15, 2016 @02:29PM from the speculation-runs-rife dept.

An anonymous reader writes: Cryptsy, a website for trading Bitcoin, Litecoin, and other smaller crypto-currencies, announced a security incident, accusing the developer of Lucky7Coin of stealing 13,000 Bitcoin and 300,000 Litecoin, which at today's rate stands more than $5.7 million / €5.2 million. Cryptsy says "the developer of Lucky7Coin had placed an IRC backdoor into the code of [a] wallet, which allowed it to act as a sort of a Trojan, or command and control unit." Coincidentally this also explains why two days after the attack was carried out, exactly 300,000 Litecoin were dumped on the BTC-e exchange, driving Litecoin price down from $9.5 to $2.

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No sympathy here. by Anonymous Coward · 2016-01-15 14:32 · Score: 5, Insightful

Crypto currencies are like the wild wild west of monetary transactions. Unless you are doing something that requires absolute discretion, it's really not worth the risk.