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BitCoinica, a virtual exchange for BitCoins, is being sued by its customers for not paying the sum they lost in hacking attacks.
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BitCoin is a very popular type of virtual currency which is often used in peer-to-peer transactions. It is usually used when transactions are meant to be secret and not taxable. A number of virtual exchanges work to aid the users who transact in BitCoins. One such exchange, BitCoinica, had to face two hack attacks recently. And, it’s now under pressure from its customer for repaying the lost money (in the hacks).


Bitcoin

In March, BitCoina faced the first of these two attacks. In this hack attempt, the website lost 43,554 BitCoins. This roughly translated to a total loss of approximately $87,000. At that time, the administration of the exchange assured the customers that they don’t need to panic and that the company will fully reimburse their losses.

However, rather than reimbursing the losses, the owners of the company sold it to a UK-based exchange Intersango. Soon after this hand-over, the exchange was attacked yet again. This time, 18,547 BitCoins worth $90,000 were looted by the hackers. Again, the brunt of the losses were pressed upon the common users.

Intersango closed the service on the pretext of improving security while at the same time, assuring the customers that 50% of their losses will be reimbursed soon while the rest will be dealt with later. Naturally, this disgruntled a lot of users. Four of the users who had lost money in the hack attacks took their plight to the Superior Court of California in San Francisco.

They filed a lawsuit against both companies, citing how they weren’t handing out the due moneys of the customers. The problem with the lawsuit is that the names of BitCoinica founders and staff are not verified. This means that they may as well be aliases of unknown persons; in which case, the lawsuit may turn out to be futile.

Courtesy: Tech Week Europe

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