June 18, 2011 - 10:35 AMT
Symantec warns of Bitcoin thieves pilfering digital wallets

Security firm Symantec is warning that more people may end up like Bitcoin user "Allinvain" and find their Bitcoin digital wallets pilfered by malicious hackers.

Symantec recently discovered a Trojan called Infostealer.Coinbit lurking on the Internet that locates the Bitcoin digital wallet and e-mails its contents to the hackers. With the information contained in the Bitcoin's wallet.dat file, online thieves can easily steal the Bitcoins, PCWorld reported.

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is an online digital currency traded over a peer-to-peer network. The currency uses a system of private and public keys to verify the authenticity of each transaction and transfer Bitcoin balances between users.

The weak point in the system is that your Bitcoin wallet contains a private key.

User “Allinvain” claimed that thieves have stolen 25,000 BTC (more than $400,000 based on June 17 rates) from him. It's not clear how hackers were able to steal Allinvain's Bitcoins or if malware was used.