I feel really bad for the phpfog guys. But given the situation, I think they handled it admirably well - kudos to them. No software is secure and this could have happened to anyone. Especially startups who have to take shortcuts at the very beginning. I know the attackers were just kids but I have to admit pursuing legal action sounds very tempting - even to just act as a deterrent to others. If they had just put up…
What I find most disturbing about this whole situation is the way in which these teenagers are handling themselves, especially after the fact. The continued denial of responsibility and half-hearted mea culpa, coupled with the monetary damage to those businesses who had been running on PHPFog, leads me to sincerely desire that these teenagers face a penalty of some magnitude, not just a slap on the wrist. Maybe then…
PHPFog built a castle out of sand and you're upset that a wave came and demolished it. I'm always surprised at how thin-skinned a lot of HN commentary is. "Oh, Zed shouldn't be so rude" "These kids' lives should be destroyed for playing games with an wholly insecure website." "I stopped reading that article because it used the word blowjob."
I don't get angry at my dog when he shits in the house. Being angry at something that can't understand only satisfies the urge to shift blame.
My dog shits in the house and it's my fault for not walking him sooner. If some children compromise every level of your company then getting mad at them is only trying to deflect the blame. PHPFog is the only responsible party in this mess. I feel for the customers who still trust them.