29 Mar '13, 1pm

Largest Bitcoin exchange in Brazil hacked; depositors not guaranteed to get money back

Disclaimer: I'm not associated in any form with Mercado Bitcoin other than having done trades there. Luckily for me I didn't have any money there at the moment. Mercado Bitcoin, the largest – and only – bitcoin exchange in Brazil, has been offline for almost a week now. For the first few days there was no communication, but the owner just sent an email to all accounts explaining he was hacked. I haven't seen it posted anywhere in English so I'l do my best to translate what I got. As far as I understood, someone hacked his "redeem code" feature, being able to generate false credits in the system. Then during the night the hacker moved out all his credit into bitcoins, leaving MercadoBitcoin without enough BTC to pay back all the other depositors. Mercado hasn't revealed how much was robbed or more details than that, but has said he will try to pay back what he can, in that ...

Full article: http://www.reddit.com/r/Bitcoin/comments/1b8mtn/the_large...

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