3rd largest Bitcoin exchange lost its wallet.dat
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Re: 3rd largest Bitcoin exchange lost its wallet.dat
#2Translation of post:
DECLARATION I hereby inform all users of the service www.bitomat.pl of system failure that occurred on 26 July 2011 and its consequences. At the outset I would like to apologize for such a long delay in publication of this statement. I explained that it was dictated only by the good service investigation conducted to determine the causes of failure and the people responsible for it. Unfortunately, to date, despite intensive efforts, could not determine these issues. However, I believe that the longer pause to disclose this communication at this stage would be unreasonable. I am also aware that service users are the appropriate explanation. On 26 July 2011 at about 23:00, I noticed that absorbs all Bitcoin server machine resources, and probably not used for making. So there was need to increase the amount of RAM in the server. As a result of that procedure - suddenly the whole virtual machine has been erased, all data stored on the server has been lost!, Including records concerning bitcoinowego portfolio and its backups (backups). I have taken action have established that the disappearance of the data was the result of the introduction of virtual server settings, which he never would have introduced. Amazon Web Services Company, which is located servers, website says that the machine that has been cleared has been set up in such a way as to be irretrievably destroyed automatically with the data on disks attached to it at the time of her arrest by the shutdown. We are constantly trying to determine who made changes to these settings and whether it will be able to recover lost data. Unfortunately partnership with Amazon Web Services, which was placed servers service is difficult. Once I realized that I deleted the machine have redeemed the biggest package of technical support, I talked to the manager, asked about the security of disk space, I explained, so far unsuccessfully. Still exerts pressure on the Amazon Web Services to accelerate their activities but without concrete results. At the moment I am unable to clearly determine the causes of crashes, I suppose that it is the result of actions of third parties, which are causing the server tried to cancel to hide their illegal activities, or intentionally wanted to website disappeared. If my suppositions are confirmed, the fact will let police and prosecutors. At the same time if possible take action through which it would be possible to recreate lost data. But what I need to interact with the server's owner, and that as I mentioned above is difficult. At this point I wish to inform and assure you that your cash deposited into your bank account service and not converted into BTC and unpaid cash from the sale of BTC remain safe and intact. Any further findings will you keep. At the same time I am counting on your help in solving the problem. I realize that the situation is very difficult, and you fear for the fate of their BTC. We are constantly working on a solution to the crisis, and I'm open to your suggestions. Currently going to: cancel all active orders so far, to restore service to operate to allow the performance of any operation (in particular the payment of PLN). Please your suggestions and ideas. I wish to inform you that I had several conversations with potential investors from home and abroad. Www.bitomat.pl service is on sale for EUR 17,000 BTC. If interested, please contact us at bartek@szabat.com. Best regards Bartek Shabbat Service Administrator www.bitomat.pl
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#3This doesn't bode well for establishing credibility in BitCoin exchanges and operators. Although nobody necessarily needs to use the exchanges, for better or worse, people use them to establish market values to more easily value their transactions.
It's obviously easy to criticize after the fact, but I am genuinely curious how backing up critical data wasn't considered. Unless, this was a very young / recently launched BitCoin exchange as a weekend hobby project that took off?
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#4Looks like the admin stored the wallet.dat and backups on an ec2 instance, and then shut it down while doing a RAM upgrade without realizing he would lose everything on the disk. Translation of post: DECLARATION I hereby inform all users of the service www.bitomat.pl of system failure that occurred on 26 July 2011 and its consequences. At the outset I would like to apologize for such a long delay in publication of th…
What?
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#5Looks like the admin stored the wallet.dat and backups on an ec2 instance, and then shut it down while doing a RAM upgrade without realizing he would lose everything on the disk. Translation of post: DECLARATION I hereby inform all users of the service www.bitomat.pl of system failure that occurred on 26 July 2011 and its consequences. At the outset I would like to apologize for such a long delay in publication of th…
> Www.bitomat.pl service is on sale for EUR 17,000 BTC What?
I currently had ~13 BTC in my Bitomat account- when I login they correctly show my balance, so I'm slightly confused as apparently their database wasn't lost, but their wallet data was? How does that happen? And why was the wallet data not backed up on a non-EC2 instance?
All of this is making me lose some faith in the exchanges- between the MtGox BS and this, is TradeHill the only exchange that can be trusted? Can they even be trusted? It seems they are by far the most competent from a technical perspective, but at this point who wants to trust any of these exchanges with any significant amount of money?
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#6Earlier quoted context omitted.
> Www.bitomat.pl service is on sale for EUR 17,000 BTC What?
That was my reaction as well. Not just the fact that it's ambiguous whether they're trying to sell for 17k EUR or 17k BTC, but the fact that they're even trying to sell it at all, and then the buyer is presumably on the hook for the BTC that were lost as well! I currently had ~13 BTC in my Bitomat account- when I login they correctly show my balance, so I'm slightly confused as apparently their database wasn't lost,…
However, it looks like the original page says BTC, so it looks like just a translation error.
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#7Was this a relatively young BitCoin exchange? One would hope that the wallet.dat was backed up somewhere else (another EC2 instance, EBS, offline). This doesn't bode well for establishing credibility in BitCoin exchanges and operators. Although nobody necessarily needs to use the exchanges, for better or worse, people use them to establish market values to more easily value their transactions. It's obviously easy to…
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#8Earlier quoted context omitted.
> Www.bitomat.pl service is on sale for EUR 17,000 BTC What?
That was my reaction as well. Not just the fact that it's ambiguous whether they're trying to sell for 17k EUR or 17k BTC, but the fact that they're even trying to sell it at all, and then the buyer is presumably on the hook for the BTC that were lost as well! I currently had ~13 BTC in my Bitomat account- when I login they correctly show my balance, so I'm slightly confused as apparently their database wasn't lost,…
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#9Looks like the admin stored the wallet.dat and backups on an ec2 instance, and then shut it down while doing a RAM upgrade without realizing he would lose everything on the disk. Translation of post: DECLARATION I hereby inform all users of the service www.bitomat.pl of system failure that occurred on 26 July 2011 and its consequences. At the outset I would like to apologize for such a long delay in publication of th…
2. Why didn't they use EBS and take frequent snapshots to S3?
It sounds like they were running an instance store EC2, then fired up a larger instance and stopped the first one? This has to be a textbook case of how not to use EC2.
Re: 3rd largest Bitcoin exchange lost its wallet.dat
#10Failure to backup, improper trust in individuals, improper understanding of the technology, poor security practice, and bad decisions will wipe out early adopters' wealth continuously and relentlessly.
I doubt we will see much of the early adopters retaining their bitcoin wealth from these early days. Those who did are either incredibly lucky, or incredibly competent.
I am an early adopter of bitcoin and I hope to survive or avoid the many dangers and poor decisions that ensnared many of peers on the road to bitcoin richness.