Security is one of the major concerns when it comes to the bitcoin industry. There have been so many instances where the security of bitcoin platforms was breached by hackers, making away with loads of bitcoin. The history has taught bitcoin businesses not to compromise on the security of their products, as it may end up causing some serious damage to their reputation. Even with bitcoin exchanges and wallet providers implementing the best security features, they still face the threat.
Yesterday, BitQuick, a peer to peer bitcoin exchange platform decided to take down the site after detecting a security breach on their trading platform. The company’s webpage now hosts a message explaining the incident, and subsequent steps taken by BitQuick to mitigate the situation.
According to the founders of BitQuick – Jad Mubaslat and Chad Davis, their platform’s server was attacked by someone to gain unauthorized administrative access. Luckily, the security system working as it is supposed to work detected the break-in early on. The BitQuick administrators are said to have reacted quickly by shutting down the servers to repel serious damage to the platform.
BitQuick platform is expected to stay offline for another 2-4 weeks until the damage assessment is done. The company is currently investigating the source of the attack and the possible damage the attacker might have caused to the platform. While explaining the situation, BitQuick has also announced that all the funds available on the platform are safe. Additional security measures implemented on the platforms have ensured that all the KYC documents and other user information on the platform are safe.
There have been various instances where the hackers successfully penetrate the security of multiple bitcoin platforms and steal thousands of dollars’ worth in bitcoins. The Mt Gox incidence is still fresh in the minds of Bitcoin users. Even in the case of Mt Gox, it is alleged that the hackers stole a lot of bitcoins from the platform, forcing it to declare bankruptcy. Mt Gox incident led to the bitcoin price plummeting from over a thousand dollar to less than $200. Bitpay was also a victim of a hacking incident back in 2014. The bitcoin payment processor had lost about 5000 bitcoins to hackers.
No sooner the breach was detected, BitQuick not only shut down its servers, they also started the process of initiating withdrawals for their users. Emails were sent to the platform’s customers, with instructions for withdrawing balances from their account. According to the statement on BitQuick, except for 3-percent, the company has processed all the remaining funds. By refunding its users, the company has reduced its liabilities, in case things hint to go south.
In the same announcement, BitQuick has also mentioned that they are planning to hand over the platform to a new management due to personal reasons. They are looking for enthusiastic people who can take over the platform.
We hope the platform will be up soon to cater for its customers.