Quote from: kache on May 03, 2014, 11:52:26 AM

Quote from: busoni on May 02, 2014, 10:44:03 PM

All funds are safe. Poloniex does use cold wallets.

What happened was an attacker used social engineering to gain root access to a wallet server. This was made possible by absolutely jaw-dropping negligence on the part of the hosting provider. Fortunately, I caught the attempt in time and was able to shut down the server before anything was taken. All BTC has been moved into cold storage, and then next step is to set up a new server with a different provider.

Please stop sending BTC to your old BTC deposit addresses. The funds will not be lost, but all new addresses must be generated, as I must assume the old wallet is compromised. It is very unlikely that it was, but "unlikely" is not good enough.

I appreciate everyone's patience while I take proper security measures before bringing the exchange back online.

What about BadgerCoin addresses? My pool has been automatically depositing on the old (frozen) address for more than a day already. Are those funds lost?

OMG. Really? your BadgerCoin lost?