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Bitcoin Ewallet vanishes from internet - up to 1.3 million gone

August 2, 2011

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.”

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Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • The Man

    find the thieving nigger and kill him.

  • Anonymous

    People trust these online services way too much. Holding bitcoins yourself is also risky, but if done carefully, it can be safe.

    I believe that bitcoins are going to change the world. I recommend that
    everyone read up about them. If you are interested in buying/selling
    bitcoins, I personally use and recommend http://www.tradehill.com - they have lower fees than the main exchange (mtgox), and their website seems more professional IMHO.

    Also, I have a code that will get you 10% off trading fees there for life: TH-R1168

    Enjoy!

  • http://id.bgeron.nl/ Bram Geron

    I find your hint of racism disturbing.

  • TeaRex

    Stop fucking spamming your fucking TradeHill code in every fucking forum on this planet you idiot!

    Other people: Please don’t use TradeHill until they stop doing this referral code thing or at least deactivate codes known to be spammed.

  • Anonymous

    Thanks for your gentle suggestion, but I’m afraid I must decline.

    I get almost nothing from the referrals, but I enjoy helping what I believe (currently) to be the best bitcoin exchange.

  • Bitcon Shrugged

    Even tradehill isn’t safe. There’s over $50,000 missing from their exchange because stolen bank accounts were used to launder money through Tradehill into Bitcoins. MtGox is missing over $500,000. Bitcoins are crashing. Time to cash out before you’re left holding an empty bag.

  • Inaquestforlight

    Fair enough but dont post it unless someone is asking or if it is relevant and no just bitcoin mention doesnt make it relevant

  • C W

    Go back to Stormfront.

  • Guest

    This is libertarianism, folks. You don’t want the government messing around with your money, so you end up trusting anonymous strangers on the internet with your bitcoins. Enjoy!

  • John Galt

    When Bitcoin users invade a 3rd world country to deal with their daddy issues, then you can gloat. Until then, enjoy your looted retirement savings.

  • Vaclav Pater

    The strongest point of bitcoin is that it is decentralized. You probably should not use it at all if you think storing your wallet on a centralized server is a good idea.