Also, it's a shame that this kind of breach happens, but it seems like it's been a while since a "$COMPANY hacked X BTC stolen" headline was out there[1]. There seem to have been more of those in the past and they appear with less frequency, which is a good thing, I guess.
[1] Silk Road doesn't count toward this recollection, since it falls under the "Bitcoin $COMPANY busted by the feds" headline, which will probably happen more often in the future.
For anyone who wants to get their missing BTC out of inputs.io (who doesn't), I've written a blog post here: http://bitcoinreviewer.com/inputs-io-hacked-refund/
From what I have read the current Fed stance is - if you think BitCoin is money, we are ok with that as long as you comply with all regulations.
Um....I don't see how anyone is okay with this answer.
No thanks, I'll stick with insured deposits. Imagine if your bank called you up and said "Your money is gone, but we're reeeeeally sorry."
[1] https://bitcointalk.org/index.php?topic=248803.msg3509247#ms...
UPDATE: Correction - according to [4] it seems that almost all funds were stoled in the hot wallet, and the hacker was "nice" enough to not steal it all at once, presumably to stay undetected and come back for more. I'm not sure if I buy this argument though.
Also, according to the owners the hack occurred on 26th October [2]. It may be possible that if you deposited funds after that date you will receive full refund, as they should still be on their wallets. Unless hackers took that too.
UPDATE: Also according to [4] the funds that were being deposited after 26th were being withdrawn at the same time by other users. So they're as gone as the ones from before 26th. You will be refunded in full only if you deposited very recently.
This whole situation (and a bunch of previous ones) is also why at Bitalo [3], we are developing an exchange which will not have this problem, as we use multi-signature addressees to store the coins. This means that you need two signatures to spend funds - one from us, and second one from the user. We also never transmit users password over the wire, as we use SRP protocol for authentication.
In unrelated news, China just passed 1800 CNY per BTC :). I wonder how's the security status of chinese exchanges/wallets. Unfortunately I don't know the language, so can't test that.
[1] https://bitcointalk.org/index.php?topic=248803.msg3505884#ms...
[2] https://bitcointalk.org/index.php?topic=248803.msg3505966#ms...
[3] http://bitalo.com (in private beta, drop a message to [email protected] to receive an invite)
[4] https://bitcointalk.org/index.php?topic=248803.msg3506034#ms...