Poor Key Management
Private key leak, hot wallet
MyBitcoin was a user-friendly wallet platform catering mostly to crypto newbies interested in buying bitcoin for the first time. Dozens of users flocked to the platform in its early days. MyBitcoin built its reputation by providing a free, user-friendly service targeted at newbie Bitcoin buyers. It collected scores of users, including Bitcoin evangelist and host of The Bitcoin Show Bruce Wagner. MyBitcoin had half its deposits in “cold storage,” he said, so it will be refunding all users 49 percent of their deposits. MyBitcoin claims to have had 154,406 Bitcoins in its coffers at the time of the incident, which at the time translated to more than $2 million USD.
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