Aussie Bitcoin wallet site Inputs.io was left unable to pay an undisclosed number of user balances after the service was hacked on Thursday and relieved of $1.1 million in Bitcoins.
“The attacker compromised the hosting account through compromising email accounts (some very old, and without phone numbers attached, so it was easy to reset),” according to a post on the Inputs.io website.
“The attacker was able to bypass [two-factor authentication] due to a flaw on the server host side.”
The young man told AM he denied stealing the digital currency but did not want to be identified because he was scared for his safety.
He said writing off $1.1 million in Bitcoins was a feeling "hard to describe".
Bitcoins are a form of peer-to-peer internet currency – also known as cryptocurrency – and Inputs.io built something of a reputation in the Bitcoin-trading community for its security, which includes bcrypted passwords, two-factor authentication and GPG authentication.