Not Hacking, but Trickery, Lost Bitpay Almost $2 Million
September 30, 2015
The article titled How a Clever Hacker Tricked a Major Bitcoin Company Out of $1.8 Million on Motherboard shines a light on the manipulation of BitPay,a Bitcoin payment service, by a clever hacker. Apparently the attacker sent an email from BTC Media CEO David Bailey’s computer to a BitPay CFO requesting his corporate email information, which he readily supplied because the two companies were already in talks about a potential partnership. The article clarifies,
“The insurance claim on the lost funds was denied because BitPay’s computers were never hacked—instead, they just gave away their email passwords in what appears to be a classic phishing scam. Phishing is when an attacker send a scammy email in the hopes that the victim is not savvy enough to trash it immediately. …Several months after the hack, BitPay was reportedly processing more than $1 million in payments every day.”
The hacker continued using Bitpay’s executive accounts to request funds, all of which were apparently granted until an employee of the transaction software company, SecondMarket, was notified. The article and court case emphasize that this was not a hacking scenario, just a $1.8 Million phishing scam that people using Craigslist for job searches avoid every day.
Chelsea Kerwin, September 30, 2015