As a very quick description, for those that do not know what a BitCoin is, its a virtual currency that can be used to buy products and services. They can even been bought and sold for real money. So although a virtual currency; they are a real as the change in your pocket.
Over the past year or so a couple of exchanges have been hit by hackers stealing this virtual currency. The latest to be hit is US based BitFloor with a lost of 24,000 units (around $250,000).
Again, not to go into too much detail but to use a Bitcoin you need to know the key and exchanges, including BitFloor, have their keys safeguarded using encryption.
However, during an upgrade of the systems an unencrypted copy of the keys were stored and a thief took advantage of this.
BitFloor admits this was a very serious mistake and that the thief took a vast majority of the currency it was holding; which means it could not cover all its users account balances.
At the moment BitFloor’s website is offline and as a last resort to cover all debts this maybe a permanent thing of shut down an initiate account repayment using the current available fund.
Moral of the story; make sure you leave