BitPay on Hacking: Loss Is Ours, Client Funds Are Safe

BitPay has issued limited public comment on the recent revelations of its losing 5,000 bitcoins due to a hacking last December.

On its blog, CEO Stephen Pair says that he will not discuss the pending litigation between the company and its insurer, Massachusetts Bay Insurance Company (MBIC), which has refused to honor BitPay's claim.

However, Pair endeavors to assure clients over the safety of the holdings and that BitPay is covering the entire loss, notwithstanding the outcome of the litigation. He writes:

"This was an isolated incident, and none of BitPay’s customers, Affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Read this Term or merchants lost any funds. The only victim of the theft was BitPay. All merchant funds were secure, and there were no disruptions to BitPay’s payment services at any time."

The hacking was the latest example of scam artists using sophisticated means to infiltrate the victims' systems through phishing and assumed identities. In this particular case, the attacker didn't even have to perform any transactions on his/her own, instead instructing the BitPay exec team to do so.

Pair noted that the company is working to better protect its systems in the future. "Additionally, advances in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term cybersecurity over the last year allow BitPay to further protect funds and better serve merchants and bitcoin users," he wrote.