03 Apr '13, 8pm

Another Bitcoin Wallet Service, Instawallet, Suffers Attack, Shuts Down Until Further Notice

Bitcoin’s wild surge in value has made it even more of an attractive target for hackers. Another wallet service called Instawallet said it is suspending itself indefinitely until it changes its security architecture. The crypto-currency, which currently trades at $129.90 to the dollar, has risen by almost fourfold in the last month, as new clarity in U.S. financial regulations and a banking crisis in Cyprus helped send Bitcoin’s value skyward. But that’s also increased the load of hacking attacks on all of the major exchanges and Bitcoin service providers. The thing is that without a trusted third-party payments processor, Bitcoin transactions are irreversible and happen anonymously. So it’s almost impossible to reclaim losses after theft, making wallets for the crypto-currency an ideal target for online thieves. It’s not clear how many customers Instawallet had or how muc...

Full article: http://techcrunch.com/2013/04/03/bitcoin-instawallet/

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