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Bitfloor Back in Business

Mihai Alisie (left) conducting an interview with Roman Shtylman (right), the founder of Bitfloor, to be published in an upcoming article.

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Bitfloor, a New York based Bitcoin exchange, is now back up and running after a thief stole $250,000 worth of Bitcoins[1] from a backup on one of its servers. Roman Shtylman, the founder and operator of Bitfloor, wrote a blog post[2] promising that he is still working to return users Bitcoin funds, but that it was important to get the exchange back up and running quickly so as to not erode confidence in the continuation of the exchange any further.

Currently, any Bitcoin balances held prior to the hack are on “hold” status within the exchange. They cannot be traded or withdrawn.

The plan to return users funds currently rests on the profitability of the exchange – as profits are generated, Shtylman plans to distribute some or all of them towards releasing the Bitcoin balances currently on hold. Each user will have the same percentage of their balances released any time a dispersal is made.

Shtylman also mentioned he was pursuing potential options with investors to pay back users sooner rather than later, though no specific timeline was given in either case.

The security of Bitfloor has reportedly been heavily solidified. No longer will any customer funds be risked in a hot wallet on the server – 100% of customer funds will be placed in cold storage. Bitfloor will still operate a hot wallet, but it will only risk its own funds, not any customer funds. The REST API has been bulletproofed with a secondary passphrase to prevent unauthorized withdrawals from customer accounts. Bitfloor’s servers now reside in a PCI-compliant data center, with disk encryption making the drives useless to anyone attempting a theft while physically at the location. And, perhaps most importantly, all backups are now encrypted.

Roman ends his blog post with the following message to his customers:

\”“I am committed to keeping Bitfloor alive, strong, and growing for the bitcoin ecosystem. I would like to say thank you to all of the support I have received pressing for the return of Bitfloor and the service it provided. Bitfloor will continue to excel in both service and quality as it goes forward.”\”

Do you have Bitcoin balances on hold at Bitfloor? Do you expect Roman to keep his word and pay them back? Post in the comments below, or send your side of the story to [email protected]

Sources

1. http://bitcoinmagazine.com/bitfloor-hacked-250000-missing/
2. https://plus.google.com/109620439233076225324/posts/bLJRDHApjSP

 

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  • Tuxavant

    I had $2k USD at BitFloor when the theft happened. My funds were frozen for a few days while they sorted things out. Eventually, I was able to withdraw my USD. It took a week for the traditional banking system to get my money back, another week to send the Shiat to Dwolla so I could buy my Bitcoins there. A day or so later, BitFloor reopened. I wish I had known they were coming back so soon, I would have left the dollars there and purchased my Bitcoin from BitFloor. I really love their cash deposits. So convenient and fast!!!

  • D,

    Its a shame humanity has to full of these hackers scammers and general spoilers, but let it be clear that every theft that has ever taken place in all of history will be returned with interest as life itself demands it. 

  • Rassah

    I had forgotten how inconvenient Dwolla was compared to using Bitfloor directly. Glad it’s back. I didn’t lose anything (the $20 i had on there was returned), but have a feeling I will be contributing significantly to getting everyone’s bitcoins released just from all the mining hardware I’ll be buying through Bitfloor’s USD-BTC conversion, and all the BTC I’ll be selling to pay that hardware off :D

  • john

    i want my funds back!

    • Roman Is a bitch

      Me too, who is with me. I am ready to start a class action lawsuit, Roman is a con man and deserves a serve slap in the face. I am glad his face is on the web. Easy to find him. He stole 2700 from me and lets be honest when you cancel your account your funds are giving to you that day. he is liar about the 10 day check that is coming. I would not be surprised if they find him in a dumpster. As I have spoke to people that are going after his family. He fucked with a lot of wrong people..Also, no wonder his business failed, he is a youngster that does not know shit….he got hack for 250k, because he is a fool and knows nothing about IT security…I am starting a class action lawsuit to completely destroy him. As for his parents, I have 10 people I spoke with that are going to pay them a visit….shady gets you no where but in the ground per the Ex-Bitfloor community. I look forward to seeing him and his family gone…..one less piece of shit in the world. Also for inquiring minds i found his mother and fathers address and phone #. I will give it to anyone. I want him to get what is coming to him…..he better hide. I am not gonna go the beat down route I am gonna destroy him in court and his up on grand theft. He need to go to jail.

      Fuck Roman for life how ever long that is….Hope I can sue him before the gangsters whack him and his family. Alexander and Victoria Shtylman are his parents name. just google there names and it gives you address and phone #.

  • Roman is a thief and con man

    Me too, who is with me. I am ready to start a class action
    lawsuit, Roman is a con man and deserves a serve slap in the face. I
    am glad his face is on the web. Easy to find him. He stole 2700 from
    me and lets be honest when you cancel your account your funds are
    giving to you that day. he is liar about the 10 day check that is
    coming. I would not be surprised if they find him in a dumpster. As I
    have spoke to people that are going after his family. He fucked with a
    lot of wrong people..Also, no wonder his business failed, he is a
    youngster that does not know shit….he got hack for 250k, because he is
    a fool and knows nothing about IT security…I am starting a class
    action lawsuit to completely destroy him. As for his parents, I have 10
    people I spoke with that are going to pay them a visit….shady gets
    you no where but in the ground per the Ex-Bitfloor community. I look
    forward to seeing him and his family gone…..one less piece of shit in
    the world. Also for inquiring minds i found his mother and fathers
    address and phone #. I will give it to anyone. I want him to get what
    is coming to him…..he better hide. I am not gonna go the beat down
    route I am gonna destroy him in court and his up on grand theft. He
    need to go to jail.

    Fuck Roman for life how ever long that is….Hope I can sue him
    before the gangsters whack him and his family. Alexander and Victoria
    Shtylman are his parents name. just google there names and it gives you
    address and phone