Feeds

Bitcoinica sued for $460,000 by 'out-of-pocket' punters

Virtual bank accused of holding onto dosh after heist

Choosing a cloud hosting partner with confidence

The operators of a website that earlier this year reported that a hacker had stolen units of virtual currency worth hundreds of thousands of pounds are being sued by four users that claim to be owed more than $460,000.

According to documents submitted to a US court, four users of the Bitcoinica website have sued those involved in running the site, claiming that they have "knowingly and willfully conspired and agreed upon themselves to hinder, delay and deprive" them of their right to withdraw their money from the site.

In addition the four users claim that those involved "acted willfully and with the intent to cause injury" to them and that therefore they had been "guilty of malice, oppression and/or fraud in conscious disregard" for their rights and should be liable to pay "punitive damages".

In May the Bitcoinica site, which allowed users to trade real currency for virtual Bitcoin units (BTC), announced that 18,547 BTC had been stolen by a hacker of its systems. Currently a BTC is worth approximately $10. The operators said at the time that it would honour all "withdrawal requests" from those that had made deposits via its exchange. It subsequently announced that those making such claims would be provided with 50% of what they claimed in an initial payment.

More than 43,000 BTC were reportedly stolen from Bitcoinica following a hacking incident in March.

Since the second breach Bitcoinica has remained closed to trading whilst "the transitional process" for upgrading the exchange "to a professional level of security" is completed. The four users have only been able to withdraw half their money from the site and are claiming that those involved in running the site have acted in breach of contract by failing to repay $460,457.20 they claim they are still owed, according to the court documents.

Copyright © 2012, Out-Law.com

Out-Law.com is part of international law firm Pinsent Masons.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Webcam hacker pervs in MASS HOME INVASION
You thought you were all alone? Nope – change your password, says ICO
You really need to do some tech support for Aunty Agnes
Free anti-virus software, expires, stops updating and p0wns the world
Meet OneRNG: a fully-open entropy generator for a paranoid age
Kiwis to seek random investors for crowd-funded randomiser
USB coding anarchy: Consider all sticks licked
Thumb drive design ruled by almighty buck
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
Attack reveals 81 percent of Tor users but admins call for calm
Cisco Netflow a handy tool for cheapskate attackers
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.