Bitcoin7.com, one of the medium-sized Bitcoin Exchanges posted this message on their website today: Dear User,
Please read carefully the following critical announcement.
On Oct 5th 2011 Bitcoin7.com became the victim of a number of pre-planned hacker attacks. While our investigation is still going, evidence reveals that the attacks originated from Russia and Eastern Europe.
The attack itself took action not only against the bitcoin7.com server but also against other websites and servers which were part of the same network. Eventually the hackers managed to breach into the network which subsequently lead to a major breach into the bitcoin7.com website.
As a result of the hacking, unknown individuals managed to gain full access to the site's main bitcoin depository/wallet and 2 of the 3 backup wallets.
In addition the hackers gained access to our user database.
Even though our faith in the bitcoin project and community remains as strong as it ever was, it is our responsibility to admit that the scale of the damage is far beyond our financial and physical capabilities.
This is why we have decided to cease the operation of bitcoin7.com and instead of investing in new technology and personnel that could possibly help us overcome this unfortunate situation, we decided that we'd rather gather all possible finances through all possible means and initiate a crisis plan for reimbursing the lost balances of our users.
This is also an open invitation to all interested investors which have interest in taking over the site at the only cost of recovering the stolen bitcoins.
The crisis plan will take action over the next 90 days. On behalf of the management of bitcoin7.com we want to apologize for this extremely stressful situation.
More specific updates will follow within the next 24 hours with detailed instructions about how to withdraw your funds.
Bitcoin7.com was registered via a proxy service, so not much is known about the true owners at this point. Purportedly, it was managed by a gaming software firm, XS Software, in Sofia, Bulgaria. Users of Bitcoin7 would do well to follow the BitcoinTalk thread about the incident.