Bitcoin payments processor BitPay Inc. is the latest victim in a series of massive hacking scandals that have rocked the cryptocurrency community. The Atlanta-based Bitpay was hacked on three separate occasions in December of 2014. More than 5 000 bitcoins were stolen. Subsequent to this, BitPay sent a claim to its insurer Massachusetts Bay Insurance Company, and the latter declined to pay. The matter is now in court.
A Suspect Email
It began with an email that was sent to BitPay’s Chief Financial Officer (CFO) Bryan Krohn. Court documents give the identity of the email’s sender as David Bailey. David Bailey purported to be from yBitcoin, a digital currency publication, and he sought for Mr Krohn’s comment on a bitcoin industry document.
Apparently, David Bailey’s computer had also been hacked, and the email sent to Mr. Krohn directed him to a website that hacker controlled. The hacker’s website asked Mr. Krohn to provide his login credentials for his corporate email account. Using those credentials, the hacker was then able to transfer unauthorized transactions using Mr. Krohn’s corporate email account. This happened on December 11th / 12th 2014.
The hacker first