Popular online currency, Bitcoin might recover from a hack attack and subsequent crash in its value to almost nothing, according to a related official. Gavin Andresen, a senior developer of Bitcoin said that security on sites that uses the currency will me improved.

The value of Bitcoin at the main exchange, Mt. Gox, fell from $17.50 to a near zero level after a bunch of stolen Bitcoins were dumped on the market. Bitcoin trading was halted and its value was rolled back to pre-crash levels. Mt. Gox had announced in a statement on June 20 a computer of an auditor has been compromised and someone has stolen details from the database.

The compromised account was accessed and all Bitcoins were sold. There were attempts to buy the coins back and convert into US dollars. The breach was detected with the help of Mt. Gox's $1000 daily limit.

The system relies on heavily encrypted codes which only a specific user can unlock. The details of ownership are distributed through a peer-to-peer network. The currency does not have a central repository. The currency is being used by a number of illegal gangs besides other legitimate users.