Policy: Technology

Dogecoin seller hacked, 21 million coins lost in heist

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Beltway Confidential,Ashe Schow,Cybersecurity,Technology,Bitcoin,Currency,Dogecoin

A seller of Dogecoin — the marriage of cryptocurrency Bitcoin and popular Internet meme Doge — was hacked over the holidays, with thieves scampering off with 21 million Dogecoins.

That sounds like a lot, but at the current price, the heist amounted to $12,000 in lost Dogecoins. A seller of Bitcoin, a competitor of Dogecoin, was hacked in November, and while just 4,100 Bitcoins were stolen at the time, at the market price of $750 per Bitcoin, that amounted to a loss of $1.2 million.

Jackson Palmer, one of the original founders of Dogecoin, was surprised by the attack, and says he and co-founder Billy Markus are looking to strengthen the security of the currency.

“It's interesting that there has been a focus [on Dogecoins] in the short two or three weeks we've been up and running,” Palmer told ABC News. “I think it's crazy that it can happen, but maybe these hackers are trying to get in early.”

Indeed, Dogecoin is on the rise and is currently the fastest-growing Internet currency on the market — and it’s only been around for a month.

Bitcoin was one of the best investments one could make in 2013, and with the popularity and simplicity of Dogecoin, 2014 could be shaping up to be the year of digital currency.

Wow. Such heist. Very stolen. Many woe.

Originally published on Dec. 27, 2013. Updated Jan. 1, 2014, to reflect that sellers of Dogecoin and Bitcoin were hacked, not the currencies themselves.

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