Instawallet and Bitcoin Central down – (now) hacked

Posted on April 1, 2013

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Looks like major Bitcoin services Instawallet and Bitcoin Central are both down, possibly due to a hack.

Instawallet is an online wallet offering a “medium level of security”. The Bitcoin Central exchange, famous for legally operating as a bank late last year, bought Instawallet just over a year ago.

This forum thread points to some recent weaknesses in the Instawallet site – probably not related, but it certainly doesn’t inspire confidence.

And this address seems to be clearing out over 40,000 BTC today (only about 4.3m USD), from both the Instawallet and BC cold storage wallets (blockchain.info shows the upper transaction as Instawallet’s. The lower address, starting “1BcCo1d”, surely has to be BC’s cold storage). Although the transactions are currently unconfirmed. (Update: Now confirmed. Unconfirmed inputs had been used which needed to be confirmed first.)

Update: The maintenance message has been updated – looks like the cold wallets have been cleared out to keep the funds safe, rather than due to a hack.

Ouch. Remember to change those passwords.

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Posted in: Bitcoin sites, News