The debate is heating up regarding the service mybitcoin.com , evidently the website has been down since July 29th 2011, several days later it’s still down.
The problem at hand is that it’s estimated that between 25,000 and 100,000 bitcoins were stored at mybitcoin.com At current market value of ~$13 USD per bitcoin, it translates to $325,000 to $1,300,000 that vanished off the face of the earth.
The sum may be the first single million dollar theft of bitcoins.
The jury is out regarding if the coins were stolen and the owner vanished, or if the system was hacked and the owner vanished or lastly a hardware problem and the owner vanished. The end result is the owner of the site has not been reachable since the incident.
“Bitcoin Weekly funds is stuck there too! Also, 600 BTC that I am responsible for.” An individual posted in the forum, meaning he is out $7,800
“You might as well kiss your coins goodbye. They’re gone. Get over it.” another individual posted.
The end result is that the individuals cannot access their bitcoins and potentially over a million dollars are either stolen, or vanished (as if paper dollar bills were literally burned).
This is hurting Bitcoin credibility states Roger Wehbe the president of Flexcoin, the now largest Ewallet / bitcoin bank. We’re building a legitimate service, and yet this hurts not only Flexcoin, but Mt.Gox, Tradehill and every other bitcoin service. We find ourselves now the largest Ewallet, but this is NOT how I wanted to earn the title, I wanted to earn it by providing the most secure easy to use service. Not because the other guy did something like this.”