Bitcoin Users sue Bitcoin website over money lost in security breach

A number of users of a Bitcoin website have sued it after they lost thousands of dollars when the website was hacked and appropriate compensation was not provided.

A number of users of a Bitcoin website have sued it after they lost thousands of dollars when the website was hacked and appropriate compensation was not provided.

 
$228,000 in Bitcoins, a virtual currency with real-world value, were stolen from the Bitcoinica website in several attacks earlier this year.
 
The website told worried users that “all withdrawal requests will be honoured,” assuring everyone that “the thief stole from us not you.”
 
Bitcoin Users sue Bitcoin website over money lost in security breach
 
However, this promise to return lost funds was only partially upheld, according to the four plaintiffs, who claim they only received half the stolen amount back from Bitcoinica. They also allege that several complaints to Bitcoinica on this matter were refused or ignored.
 
Bitcoinica has since ceased trading, telling users that it is undergoing a transitional process where tighter security is being put in place. With the increase in hacking incidents in recent years and the significant monetary value of Bitcoins, the website will have a tough time ensuring funds are kept safe.
 
The affected users are looking for $460,458 to cover the lost funds, damages and costs relating to taking the case to court.
 
Source: BBC