BitPay CEO Scammed for Over $1.8 Million in Bitcoin

The CEO of Bitcoin merchant services industry leader BitPay has suffered a phishing scam that cost the company 5,000 bitcoins or over US$1.8 million, reports the Atlanta Business Chronicle

Three separate thefts by one skilled hacker

The scam occurred last December and the target was BitPay’s chief financial officer, Bryan Krohn. It all started when Krohn received an email, allegedly from an online digital currency publication looking for commentary on a document about the Bitcoin industry.

This was an email sent from a hacker who had taken over a computer. The hacker sent Krohn to a website where Krohn is alleged to have given the log-in information for his Bitpay corporate email account. According to lawsuit paperwork:

“After capturing Mr. Krohn’s Bitpay credentials, the hacker used that information to hack into Mr. Krohn’s Bitpay email account to fraudulently cause a transfer of bitcoin.”

Now armed with Krohn’s corporate log-in credentials, the hacker accessed the account and used them “to learn specific details about how Bitpay transacted business.” The hacker sent emails to the CEO of BitPay, Stephen Pair, as if he were Krohn, and asked Pair to send 1,000 BTC to a consumer’s wallet, which Pair did. After

Read more ... source: Cointelegraph