It is already known that the bitcoin service provider, Purse.io was facing some security issues during the weekend. Many Purse.io users had received unauthorised password change notification for their Purse.io accounts on their emails. For few users, this mail was followed by two other notifications. One informing the user that bitcoin transfer has been initiated and another notifying the success of the bitcoin transaction.
Some of the users claimed that they lost bitcoins from their account, Purse.io didn’t respond to those claims immediately. However, Purse.io has now come forward to say that close to 10.25 BTCs were stolen from few Purse.io users’ wallets.
READ MORE: Weekend Spells Trouble for Purse.io, Users Face Issues
Once Purse.io users received the emails, they published their woes on Reddit posting about the incident. Soon after, Purse.io suspended its services for over 5 hours on Sunday to investigate the issue. At the same time, the platform transferred all its bitcoins to a safe offline wallet to prevent them from being stolen. As users continued to complain about their accounts being compromised, Purse.io released a statement on its blog post, reassuring them that all their funds are safe.
Upon investigation of unauthorised activity on its platform, the company concluded that one of their email service provider’s compromised systems were responsible for the issue and it took appropriate steps to prevent any further damage. Purse.io is said to have reset the tokens for all affected users to safeguard user accounts as well.
A recent article published in one of the cryptocurrency news site reports that the funds were stolen from users who had not opted for two factor authentication. Andrew Lee, the CEO of Purse.io has mentioned to Coindesk that the company discovered that they have lost about $2500 worth (10.235 BTC) while they were tallying their customer liabilities against company held funds. Andrew also mentioned that the users don’t have to panic as Purse.io has reimbursed stolen bitcoins with company’s funds.
Purse.io will soon be releasing a full investigation report in the coming days.