(The Hosting News) – While the bitcoin may be the hot new means of paying someone via the web, protecting the digital currency is proving to be a bit harder.
According to a report from Techworld.com’s John E Dunn and made available via Computer World, bitcoin provider Bitcoin Payment Solutions, otherwise known as “BIPS,” lost a total of $1 million dollars following a recent DDoS attack.
The DDoS attack, however, was just a distraction as hackers were able to then successfully compromise the website – something that led BIPS to shut down its free consumer wallet service.
“BIPS has been a target of a coordinated attack and subsequent security breached. Several consumer wallets have been compromised and BIPS will be contacting the affected users,” the company confirmed through a news release just a little earlier this month.
A later post from BIPS also admitted that company servers had been completely wiped.
It’s hardly the first time bitcoin providers have faced the wrath of hackers. Back in April, MT.Gox faced a similar DDoS issue, albeit less damaging. Meanwhile, another caused Instawallet to indefinitely suspend services.
BIPS has noted that it eventually plans to “reintroduce” its wallet with what it calls a “re-architected security model.”