BitQuick exchange shuts down after security breach

BitQuick exchange shuts down after security breach

Earlier this week, U.S. based bitcoin exchange BitQuick had announced that it had a security breach and their exchange platform was compromised.

At the time, BitQuick had said no funds were taken and all funds are secure.

In a turn of events today, BitQuick has posted a new announcement on their website. The exchange platform is no longer accessible, and in the announcement they said they are shutting down due to the security breach, however, they also posted that they are now seeking new management. In the notice they say the two events are not connected, but it’s extremely hard to believe that any sane company would announce a change in management (ownership) at a time like this.

It’s not clear if BitQuick will ever reopen at this point. The full notice is below.

March, 17 2016 – 10:24 AM EST

When BitQuick was first founded back in August, 2013 it was founded with the intention to make Bitcoin trading safer and simpler. Through the years, we have always put customer security as our top priority. In February, 2014 we were the first US trading platform to implement proof of reserves following the Mt. Gox incident. 2015 up through now has seen incredible growth; BitQuick reached $1.5M 30 day trailing volume just last week, 15x where we were in January, 2015. This would not have been possible without our loyal and supportive customer base.

On Monday, March 14, 2016, our server fell victim to an attack that gave the attacker unauthorized administrative access. The breach was immediately noticed, and the server was shutdown to prevent any further damage. We are still performing a formal investigation to determine the attack vector, and specifically what information was obtained from the server. Due to additional security mechanisms in place, no funds were taken, and all ID’s (driver’s licenses, passports, etc.) and emails remain secured. Sellers were emailed withdrawal instructions Tuesday evening. All outstanding orders and withdrawals have been processed. Only 3% of all funds remain unclaimed. Support is still available at orders@bitquick.co.

We have always provided our customers with the highest level of security and convenience, and we will not restore service until we are 100% confident we can continue to provide the same level of service that our customers are accustomed to, and deserve. This will occur once the investigation has been completed, the attack vector has been patched, and the rest of the source code has been audited for security. We estimate that this process could take anywhere from 2 to 4 weeks. An update will be issued to all BitQuick customers once the investigation has completed, and once service is restored.

Completely separate from this event, BitQuick has been engaged in the search for new management due to personal reasons for the current team. It has been an incredible 2 and a half years, and it has been a wonderfully rewarding experience to be able to offer thousands of customers a simple and fast solution for trading Bitcoin and other cryptocurrencies, an experience that has no doubt been greatly enhanced by our remarkably dedicated and supportive user base. We know that our service is truly unique, and that our vision can still be fulfilled. If this is a project that you or someone that you know would be interested in pursuing, please let us know. We’re looking for passionate and talented individuals or corporations to take ownership and continue growth with the same high standards we’ve always provided for our users. If interested, contact sale@bitquick.co.

Until then, we will continue working as hard as we can to restore safe service access. We really appreciate the support from everyone, and we will be back soon.

  • Jad Mubaslat & Chad Davis
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david@bitcoin.com'
David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.