<p>I think this is a good summary: <a href="http://arstechnica.com/uncategorized/2012/05/bitcoins-worth-87000-plundered/" rel="nofollow">http://arstechnica.com/uncategorized/2012/05/bitcoins-worth-87000-plundered/</a></p>

<p>Even more summarised thanks to <a href="http://freesummarizer.com" rel="nofollow">freesummarizer.com</a>:</p>

<blockquote>
  <p>More than $87,000 worth of the virtual currency known as Bitcoin was
  stolen after online bandits penetrated servers belonging to
  Bitcoinica, prompting its operators to temporarily shutter the trading
  platform to contain the damage.</p>
  
  <p>Friday's theft came after hackers accessed Bitcoinica's production
  servers and depleted its online wallet of 18,547 BTC, as individual
  Bitcoin units are called, company officials said in a blog post
  published on Friday.</p>
  
  <p>In early March, a security lapse at cloud services provider Linode
  allowed hackers to make off with about $210,000 worth of bitcoin after
  they gained unauthorized access to bitcoin wallets stored by
  Bitcoinica and seven other customers.</p>
  
  <p>Strong cryptographic controls ensure that once bitcoins are spent they
  can't be taken back, although a recently published research paper
  reports limitations that allow the same bitcoins to be double spent in
  certain cases (which Bitcoin developers say they've long warned users
  to avoid).</p>
  
  <p>The March heist that hit Bitcoinica also affected several other
  trading platforms that have also lamented the necessity of storing
  large amounts of the currency in liquid form in "hot wallets" to
  automatically cover payout requests made by customers.</p>
</blockquote>

CC BY-SA 3.0
2012-06-21T13:37:17.473Z
2013-10-24T13:19:48.493Z
2013-10-24T13:19:48.493Z
Steven Roose
<p><a href="https://www.bitcoinica.com">Bitcoinica</a> was a very popular service when it was operating. What is the story behind it - when was it started, what did it offer, and what hurdles did it face?</p>

CC BY-SA 3.0
2015-01-24T17:06:22.727Z
Related: http://bitcoin.stackexchange.com/questions/3629/what-is-the-story-behind-the-linode-problem
Nick ODell
<services><websites><history><bitcoinica>
What is the story behind Bitcoinica?
ThePiachu
# What is the story behind Bitcoinica?

(Asked by: username_0 on 2012-05-23)

[Bitcoinica](https://www.bitcoinica.com) was a very popular service when it was operating. What is the story behind it - when was it started, what did it offer, and what hurdles did it face?

**Tags:** services, websites, history, bitcoinica

> **Comments:**
> **username_1**: Related: http://bitcoin.stackexchange.com/questions/3629/what-is-the-story-behind-the-linode-problem  

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## 1 answers

### Answer by username_2 on 2012-06-21. Score: 5 | Accepted answer

I think this is a good summary: <http://arstechnica.com/uncategorized/2012/05/bitcoins-worth-87000-plundered/>

Even more summarised thanks to [freesummarizer.com](http://freesummarizer.com):

> More than $87,000 worth of the virtual currency known as Bitcoin was
> stolen after online bandits penetrated servers belonging to
> Bitcoinica, prompting its operators to temporarily shutter the trading
> platform to contain the damage.
>
> Friday's theft came after hackers accessed Bitcoinica's production
> servers and depleted its online wallet of 18,547 BTC, as individual
> Bitcoin units are called, company officials said in a blog post
> published on Friday.
>
> In early March, a security lapse at cloud services provider Linode
> allowed hackers to make off with about $210,000 worth of bitcoin after
> they gained unauthorized access to bitcoin wallets stored by
> Bitcoinica and seven other customers.
>
> Strong cryptographic controls ensure that once bitcoins are spent they
> can't be taken back, although a recently published research paper
> reports limitations that allow the same bitcoins to be double spent in
> certain cases (which Bitcoin developers say they've long warned users
> to avoid).
>
> The March heist that hit Bitcoinica also affected several other
> trading platforms that have also lamented the necessity of storing
> large amounts of the currency in liquid form in "hot wallets" to
> automatically cover payout requests made by customers.


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