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Co-authored-by: Evgeny Dmitriev <[email protected]>
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---
date: 2015-02-14
target-entities: BTER
entity-types:
- Custodian
- Exchange
attack-types: Wallet Hack
title: "BTER lost $1.75 million worth due to a cold wallet hack"
loss: 1750000
---

## Summary
BTER, a China-based digital currency exchange, experienced a significant security breach on February 14, 2015, losing 7,170 bitcoins valued at approximately $1.75 million. The attack targeted the exchange's cold wallets. The company has suspended its services and is collaborating with law enforcement to investigate the incident. BTER has also offered a 720 BTC reward, approximately $170,000, for assistance in recovering the stolen funds.

## Attackers

The identity of the hackers who attacked BTER is unknown.

Hacker Bitcoin Wallet:

- [18ywz63JuUjsQ9kWyKs48dnRd2w1Hix7FY](https://www.blockchain.com/en/explorer/addresses/btc/18ywz63JuUjsQ9kWyKs48dnRd2w1Hix7FY)

## Losses

BTER lost 7,170 bitcoins worth $1.75 million

## Timeline

- **February 14, 2015, 04:32:26 AM +UTC:** [Malicious transaction was executed](https://www.blockchain.com/explorer/en/explorer/transactions/btc/f5b0363f03e1ed8bb812c135361ea93590c831ce9f13a3750be1b93575baccc6) and 7,170 bitcoins were stolen from a cold wallet.
- **February 18, 2015, 09:58 AM +UTC:** The BTER exchange [reported](https://twitter.com/btercom/status/567986605543174144) that 7,170 bitcoins were stolen and announced a reward of 720 bitcoins for the return of the stolen funds.
- **February 20, 2015:** BTER [announced](https://www.coindesk.com/markets/2015/02/20/bter-unable-to-repay-customers-following-alleged-exchange-heist) that it did not have enough funds to compensate all of its users after the hack.
- **March 12, 2015, 10:05 AM +UTC:** BTER [announced](https://twitter.com/btercom/status/575960759638724608) that markets are open again and withdrawals are available. The exchange [partnered with security company Jua](https://www.coindesk.com/markets/2015/03/12/bter-to-return-hacked-funds-following-security-partnership) and created a plan to refund affected users.

## Security Failure Causes

- **Private Key Compromise:** The breach occurred due to a vulnerability in BTER's cold wallet system. The exact nature of the vulnerability has not been disclosed, and it remains unclear how the cold wallet was accessed by unauthorized parties.

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