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Altsbit was never meant to be a household name in crypto. It didn’t have the branding of Binance, the trust of Coinbase, or the liquidity of Kraken. It was a small Italian exchange that quietly opened its doors before 2020, offering Bitcoin, Ethereum, and a few obscure altcoins like Pirate Chain and VerusCoin. For a handful of users looking for quick trades on lesser-known tokens, it seemed like a quiet option. But in just four days in February 2020, everything changed - and it never came back.
The Hack That Killed Altsbit
On February 6, 2020, hackers broke into Altsbit’s hot wallets. Not through some complex exploit or zero-day vulnerability - the kind you hear about in Hollywood movies - but likely because basic security was ignored. No multi-signature wallets. No real-time monitoring. No proof-of-reserves. Just a standard hot wallet setup, the kind you’d expect from someone who didn’t take security seriously. The theft was massive for a platform this small: 6,929 BTC, 2,321 ETH, over 400,000 VerusCoin, and nearly 4 million Pirate Chain coins. At the time, that totaled between $27,000 and $70,000 depending on price swings. For a big exchange, that’s a rounding error. For Altsbit? It was everything. Within hours, users noticed withdrawals weren’t processing. By the next day, the exchange’s Twitter account confirmed the breach. Then came the silence. No updates. No transparency. Just a vague promise four days later that they’d use cold wallet reserves to reimburse users. They never did.Why Altsbit Couldn’t Recover
Most people assume exchanges have deep pockets. That’s true for the big ones. But Altsbit wasn’t one of them. Their cold wallet reserves - the backup funds meant to protect users in case of a hack - were either nonexistent or too small to cover the loss. The exchange didn’t have a legal team, a compliance officer, or even a customer support line that worked after the breach. There’s no record of them ever filing a report with Italian authorities. No press releases. No Reddit threads from panicked users. No Trustpilot reviews. Just a quiet shutdown on February 10, 2020, and a disappearance from the internet. Compare that to what happened with bigger exchanges. When Coincheck lost $530 million in NEM coins in 2018, they raised funds, paid back every user, and rebuilt. When Mt. Gox collapsed, it took years - but they tried. Altsbit? They vanished.What Altsbit Got Wrong
If you’re choosing a crypto exchange today, Altsbit is the worst-case scenario. Here’s what they missed:- No cold storage: Most of their funds were in hot wallets - online, connected to the internet, easy targets.
- No proof-of-reserves: They never showed users they had enough funds to cover deposits. No audits. No transparency.
- No multi-factor authentication: Users could log in with just a password. No SMS, no authenticator apps.
- No customer support: After the hack, no one responded. No emails answered. No live chat.
- No regulatory compliance: No KYC. No AML checks. No oversight. Just a website and a wallet.
How Altsbit Compares to Today’s Top Exchanges
Today’s leading exchanges don’t just offer better prices or more coins - they offer safety. Here’s how they stack up:| Feature | Altsbit (2020) | Coinbase, Kraken, Binance (2025) |
|---|---|---|
| Hot Wallet Usage | Primary storage | Less than 5% of funds |
| Cold Storage | Unknown or minimal | 95%+ of funds, geographically dispersed |
| Proof of Reserves | Never published | Regularly audited and public |
| Multi-Signature Wallets | No | Yes, with hardware security modules |
| Two-Factor Authentication | Not enforced | Mandatory for all users |
| Regulatory Compliance | None | KYC, AML, licensed in multiple jurisdictions |
| Customer Support | Nonexistent after hack | 24/7 live chat, email, phone |
What You Can Learn From Altsbit’s Failure
If you’re still trading on small, unknown exchanges - even ones that seem “fine” right now - you’re playing Russian roulette. Here’s what you should do instead:- Only use exchanges with public proof-of-reserves. Look for monthly or quarterly audits from reputable firms.
- Never keep large amounts on any exchange. If you’re not actively trading, move your coins to a hardware wallet.
- Check if the exchange is regulated. Look for licenses from FINCEN, FCA, CySEC, or similar bodies.
- Read reviews - but not just the ones on their website. Search Reddit, Twitter, and crypto forums for real user experiences.
- Never trust a platform that doesn’t offer two-factor authentication. If they don’t make it mandatory, they don’t care about your security.
Is Altsbit Still Operating?
No. Not even close. As of November 2025, Altsbit’s website is offline. Its Twitter account has been inactive since 2020. Its domain is no longer registered. Even Cryptowisser, which lists over 500 exchanges, only keeps Altsbit in its database as a historical footnote - not as a live platform. There’s no successor. No revival. No rebrand. Just a warning.Final Thoughts
Altsbit’s story isn’t about the money lost. It’s about the trust broken. Thousands of people deposited their crypto, thinking they were safe. They weren’t. And when the hack came, there was no one to turn to. Today’s crypto market is crowded. There are hundreds of exchanges. But only a handful are worth your trust. Don’t let a forgotten name like Altsbit be your lesson. Choose wisely. Use exchanges that prove they care about your money - not just your trades.Was Altsbit a scam?
No, Altsbit wasn’t a scam in the traditional sense - it didn’t fake its existence or run a Ponzi scheme. It was a real exchange that operated for a short time. But it was grossly negligent. It failed to protect user funds, made empty promises after the hack, and vanished without a trace. For users who lost everything, the result was the same as a scam.
How much money was stolen from Altsbit?
Approximately 6,929 BTC, 2,321 ETH, 1,066 KMD, 414,154 VRSC, and over 3.9 million ARRR. At the time of the hack in February 2020, this totaled between $27,000 and $70,000, depending on cryptocurrency prices. For a small exchange, this was a total loss.
Did Altsbit reimburse users?
No. Altsbit claimed it would use cold wallet reserves to repay users, but no reimbursements were ever made. The exchange shut down permanently within days of the hack, and there’s no evidence any funds were returned.
Is Altsbit still available to trade on?
No. Altsbit’s website is offline, its social media accounts are abandoned, and its domain is no longer active. It has not operated since February 2020 and is not listed as a functioning exchange by any reputable source in 2025.
What should I use instead of Altsbit?
Stick with exchanges that have public proof-of-reserves, cold storage for most funds, two-factor authentication, and regulatory compliance. Coinbase, Kraken, Binance, and MEXC are examples of platforms with strong security records as of 2025. Always research before depositing funds.
Can I recover my funds if I lost them on Altsbit?
No. Since Altsbit shut down without returning funds and has no legal entity or support structure left, there is no path to recovery. This is why experts always advise: never store large amounts on any exchange. Use hardware wallets for long-term holding.
Why do small exchanges like Altsbit still exist?
They exist because some users don’t know the risks - or they’re attracted by low fees or niche coins. But in 2025, the market is clearing out insecure platforms. Regulatory pressure, user awareness, and better alternatives have made it nearly impossible for small, unregulated exchanges to survive long-term.
4 Comments
imoleayo adebiyi
It’s heartbreaking how easily trust can be shattered in crypto. People deposit their life savings thinking they’re safe, and then-poof-no one answers, no one cares. Altsbit didn’t need to be a giant to earn respect; it just needed to do the basics right. The fact that it didn’t even try is the real tragedy.
Savan Prajapati
Don’t use small exchanges. Period.
Angel RYAN
Yeah man, I remember when I first got into crypto and thought all exchanges were kinda equal. Then I lost a little bit on some sketchy site and learned the hard way. Now I only use Coinbase or Kraken. Even if they charge more, at least I sleep at night. Your money’s safer than your phone password on those platforms.
Vaibhav Jaiswal
Bro, Altsbit was like leaving your front door open with a sign that says ‘Hey thieves, come get the cash!’ and then acting shocked when someone walked in. It’s not that they got hacked-it’s that they made it EASY to get hacked. No 2FA? No cold storage? No audit? That’s not negligence, that’s arrogance. And now they’re ghosts. Meanwhile, real platforms are out here publishing their wallet balances like it’s no big deal. The difference isn’t tech-it’s character.