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ID:

canadian-bitcoins-821

Date:

Status:

Incident Count:

October 15, 2013

Verified

1

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REKT

Contributor:

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zerofriction.io

KYC By:

KYC:

None

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Audit By:

Audits:

None

Loss Amount:

100,000

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Recovered:

-

Rewards:

Currency:

USD, BTC

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Key Indicators

Platform:

Type:

Category:

Method:

Data Sources:

Bitcoin

Exchange

Assets

Key Management

Extended Method:

Private key leak, hot wallet

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Days in Operation:

0

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Canadian Bitcoins is a cryptocurrency brokerage allowing customers to buy or sell bitcoins, litecoins and other cryptocurrencies. Canadian Bitcoins’ servers were being run by a company called Rogers Data Centre (who were technically in the process of taking the data centre over from its previous operator, Granite Networks). The Bitcoin thief started a customer service chat session with Granite Networks, the company hosting Canadian Bitcoins’ server, and claimed to have a problem with it. The hacker pretended to be Canadian Bitcoins CEO James Grant over instant message. According to a text copy of the chat session obtained by the Citizen, at no point during the nearly two-hour-long conversation was the caller asked to verify his identity. After being asked, the technical support worker gained access to Grant’s locked server pen, plugged in a laptop and then manually gave the fraudster access to Canadian Bitcoins servers, where he cleaned out a wallet containing 149.94 bitcoins, valued at around $100,000.

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