Inputs.io offered a means for users to store their Bitcoins conveniently. The site was run by an Australian, TradeFortress who was recently hit by two serious attacks leaving the site unable to account for user balances. The attack compromised email accounts, database access and the bitcoin backend was transferred to 10;[email protected]:[email protected].
Bitcoin transactions are made to be anonymous and non-reversible. It is therefore not possible for the lost funds to be retrieved. Inputs.io however instructs users who stored more than 1 BTC to contact [email protected] with their Bitcoin address and the same email address they use on Inputs.io. Users funds are currently being paid back from remaining BTCs at Inputs based on a sliding scale. TradeFortress might have made the same mistake which he is advising against in his recent post – storing Bitcoins on an intern connected device, and a huge amount at that.
Some users who were registered at Inputs.io or used its BTC lending service CoinLender are however sceptical on there ever being an attack at the site. Speculation is rife on this being an inside job with TradeFortress’s blockchain being cited as having more than 600 BTC as of November 7th. TradeFortress however cites a huge backlog of outgoing transactions which will refutes this fact.
With Bitcoin exchanges seeing more trades and there being more adoption of the digital currency, security is becoming an important issue for users and traders.
Image Credits: AP
Sources Bitcoin Talk Inputs.io