Steam Community Reports Coinbase Account Hacked; All Bitcoins Lost

There is a developing story of a hack targeted at the Steam community through their KeyVendor bot.

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Steam Community Reports Coinbase Account Hacked; All Bitcoins Lost

There is a developing story of a hack targeted at the Steam community through their KeyVendor bot.

Steam just started accepting Bitcoin earlier this year, and KeyVendor is a popular bot program within the community that apparently uses Coinbase for Bitcoin security and conversion.

On Monday night, ‘Jambo’ of KeyVendor.net revealed the theft on their Bitcoins and wasted no time laying the blame at the feet of Coinbase.

“Our payment processor Coinbase.com was exploited and all Bitcoin and keys were stolen from the KeyVendor bot,” Jambo said in an initial community announcement.

“These total to about $15,000 USD. This was not, however, a direct security issue with the bot, but rather with Coinbase's merchant services.”

Coinbase has made an official statement regarding this issue:

“Coinbase has investigated this incident. There has been no breach of our service or storage. Coinbase’s policy is to provide payment to merchants whose orders have been confirmed.”

KeyVendor has chosen to get in front of this issue and spread the blame, but there are always two sides to every story.

“I want to be clear that your money or keys that were stored on our service are not at risk, though,” Jambo added.

“I will pay every penny back from my own pockets, but currently, there are very important matters to take care of first. It's a very busy time and that's why this announcement is so short as well. Sorry about the inconvenience and thanks for your patience. I hope you understand.”

$15,000 USD would equate to about 25 Bitcoins lost.

Steam began accepting Bitcoin in May after agreeing to the payment option with BitPay as early as February of this year. The official announcement was made on April 21st, 2016.

Steam Community is not associated with the Steam Store (which accepts bitcoin via BitPay) or with BitPay.

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