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March 2, 2012Crises & controversyFailures & lossesdocumented

A Linode breach exposes hosted bitcoin wallets

An attacker compromised Linode infrastructure and stole tens of thousands of bitcoin from services hosted there.

Bitcoinica reported losing 43,554 BTC, while Slush and the Bitcoin Faucet also reported losses. The Bitcoin network itself continued operating; the failure occurred in externally hosted wallet infrastructure.