Real estate agent Alex Houser of the New York City-based company Blockbuster Real Estate Solutions was one of the biggest losers in the Bitcoin market in the past week when his company lost $3 million worth of Bitcoin in a hack that occurred earlier this month.
In a press release sent to CNBC, Blockbuster says that the hack was triggered by a rogue user who accessed the exchange’s database.
“The user entered a password that was too large, which made it difficult for us to verify the authenticity of the data,” Blockbuster said in the release.
“In addition, a rogue account created an account on the exchange that allowed access to its account database.”
The company has since shut down its exchange, and Housers says that its staff and the exchange are still in the process of repairing the damage caused by the hack.
Blockbuster is a major Bitcoin exchange and the only one in the U.S. that allows customers to buy and sell digital currencies on the platform.
The company is still processing the loss and says that it’s working to restore the company to its former glory.
“Blockbuster is fully cooperating with the investigation,” the company said.
“We have been working with law enforcement to secure the data of our users and our system is being upgraded to block out any malicious actors who may have breached our systems,” it added.
“We continue to take steps to mitigate any future risks and are confident in our systems to safeguard our customers’ data.”
Bitcoin exchanges like Blockbuster are a key source of revenue for Bitcoin exchanges.
According to the Bitcoin exchange market research firm CoinMarketCap, the value of Bitcoin exchanges increased more than 30% in 2017 to $9.4 billion.
But Blockbuster and other Bitcoin exchanges are under pressure from regulators and governments as a result of the hack and other attacks.
A number of Bitcoin exchange operators have recently been shut down due to the hack, including CoinMarket Cap.