Kadhim Shubbe, $4.1m goes missing as Chinese bitcoin trading platform GBL vanishes. An upstart exchange at the time, Bitcoin7, rapidly grew to the third-largest USD exchange (behind then-leaders Mt. Gox and Tradehill) but then suffered a major debilitating hack, or so the official story goes. Generally, a major heist, theft, hack, scam, or loss must cause damage greater than or equal to 500 BTC, in BTC damage only, to qualify for inclusion in this list. Consequently, this list ignores most events that occurred before 2011. If a theft, hack, scam, or loss caused damage less than 5000 BTC before 2011, it is not listed on this list at all. Users with weak passwords on MyBitcoin who used the same password on Mt. Gox were in for a surprise after the June 2011 Mt. Gox Incident allowed weakly-salted hashes of all Mt. Gox user passwords to be leaked. Statement by BitcoinTalk user tytus, who is likely to be a founder of PicoStocks. Statement by Matthew Neal Wright in email response. Initial official statement by Bitcoin7, quoted by Stephen Gornick and retrieved on BitcoinTalk. Nicholas Weaver’s estimate, quoted in Forbes. 5000 BTC is almost certainly a low estimate, as the source is a listing that promotes the successes of Bitcoin7 and fails to acknowledge the severity of the theft.
14Bitcoin7 IncidentOctober 2011l.b. 5000 BTC u.b. The priveleges were then abused to generate humungous quantities of BTC. If that would is not permissible in your jurisdiction, it can then be licensed under any permissible license of your choosing. But if evidence indicates that the casino rigged the games, then the risk is no longer understood, and the incident is eligible for the list. For example, a large gambling loss is obviously not a scam, because the risk was understood. The hot wallet and warm wallet of Bitcoin to alternative cryptocurrency exchange service Vircurex was emptied in May 2013, resulting in a significant loss of three currencies: Bitcoin, Terracoin, and Litecoin. NB: Impacts of this theft may continue to grow pending outcome of liquidation. Evidence supports the faked theft admission as mere trolling. Because sometimes the evidence is not clear-cut, this list includes or refuses to include incidents based on the best evidence available.
This obviates the need to include many incidents where people delete wallets due to lack of value at the time before 2011, and additionally prevents the inclusion of more recent proof-of-burn alternative cryptocurrencies that require bitcoins to be destroyed. Other trivial incidents can be excluded by the same principle. Some losses of Bitcoin to third parties cannot in principle be classified as scams or losses. Fallout from this theft includes the collapse of Cyprus-based Neo & Bee, which blamed its losses on Mt. Gox. In this section, each theft is listed alongside the value stolen when converted to a January 2014 BTC equivalent along with the value stolen when converted to real (inflation-adjusted) USD. Users that were not affected would be later stolen from anyways, due to the subsequent MyBitcoin Theft. Others note that transaction malleability is unlikely to result in coins being stolen and belive the Silk Road 2 incident to be an inside job.
Note that this thread is relatively new and was created because of space limitations in the original thread. Vircurex May 2013 Report. Everydice, which currently does not meet the lower bound, may reach it if the site owners disappear. However, although it was sent, the site database was not updated to reflect the changed balances, causing the incident. None of the BTC, however, was backed by Mt. Gox. However, he forgot to remove the balance in Just-Dice.com’s database. Aside from the direct damages of the theft, the hack involved a database leak. Mt. Gox resolved the hack by reverting trades to a previous version. After the incident, Mt. Gox shut down for several days. This measurement was based on Mt. Gox price data prior to 2013-06-09, Bitstamp price data after 2013-06-10, and US CPI data published by the United States Bureau of Labor Statistics. Before 2014, another clause was used to include several thefts due to the rapidly appreciating Bitcoin price. Some weaker passwords were used to conduct the relatively more severe Mass MyBitcoin Thefts.
