That is very interesting indeed. Holding Bitcoins in a wallet on your server is the equivalent of having actual cash on your server. When someone takes it, there is a definite value of the damages vs. ID theft where the damage could be drawn out over a period of time.

As I consider launching my own Bitcoin business, I have wondered about where to host the bitcoind that serves as my business bank account. This event certainly makes me reconsider just any VPS.