BITCOIN

SealsWithClubs shuts down after operational security compromised

TAGs: Bitcoin, bryan micon, sealswithclubs

sealswithclubs-shutdownBitcoin-only online poker site SealsWithClubs has abruptly shut down for good following unexplained technical issues that compromised the site’s security.

The SealsWithClubs site had been offline for over a week following what the company described as “several events … related to operational security.” As a result of these events, SealsWithClubs’ operators believe the site “now operates in a perpetual state of jeopardy.” SealsWithClubs declined to offer specifics, but said these may be revealed at a later date “if any team member chooses to come forward of their own volition.”

SealsWithClubs says it doesn’t believe “any of our Bitcoin wallets used in operations to be compromised or lost.” Players have been urged to withdraw their funds “as soon as possible” and “cease all activity to their account deposit addresses now.” Withdrawals “will only be open for a limited period of time,” which the company suggests could be “at least a few months.” The company insists the operation “is, and has been, completely solvent up to this point in operations.”

In the notice announcing the shutdown, SealsWithClubs says chairman Bryan Micon intends to “carry forward the business with his own team” in Antigua. The company says it “makes the most sense to hand off assets” – including a new SwC 2.0 software package and the swcpoker.eu domain – to Micon, but there will be “no administrative oversight carried over” to Micon’s new site.

SealsWithClubs will not be providing Micon with account passwords, authentication info or balance details. However, SealsWithClubs will provide Micon with account names and their associated email addresses and Krill loyalty point totals. The company says this should allow Micon’s team “it they choose, to reserve usernames and e-mail password resets to users as well as honor their Krill amounts.”

SealsWithClubs’ demise, however temporary, is a blow for Bitcoin acceptance in the online gambling industry. The site was by far the largest Bitcoin-only poker room in operation. In December 2013, the site warned users to reset their passwords following unauthorized access of its customer database server.

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