[QUOTE]Just how many bitcoins were stolen wasn’t said in the post, although it listed a series of Bitcoin addresses that the Silk Road administrators believe to have been involved in the heist. Those transactions seem to point to a single Bitcoin address that contains 58,800 coins, worth more than $36.1 million at current exchange rates. But tracing Bitcoin’s pseudonymous transactions is always tricky–other estimates range from 41,200 by a Silk Road user and 88,000 by the Bitcoin news site.[/QUOTE]
[url]http://www.forbes.com/sites/andygreenberg/2014/02/13/silk-road-2-0-hacked-using-bitcoin-bug-all-its-funds-stolen/[/url]
Who would have thought that you couldn't trust an online dealer. . .
[QUOTE=stomppah;43904114]Who would have thought that you couldn't trust an online dealer. . .[/QUOTE]
That's not really the point
How are they going to cash it out?
[QUOTE=The Rifleman;43904154]How are they going to cash it out?[/QUOTE]
I've heard there are BTC laundering services, I'm not sure how they work.
[QUOTE=The Rifleman;43904154]How are they going to cash it out?[/QUOTE]
Run the coins through bitfog, then cash them out through an exchange to an off-shore bank account.
It won't be quick, but it'll work.
The operators are blaming a fundamental flaw in the Bitcoin protocol. If that turns out to be true (and, to some extent, even if it doesn't), trust in the integrity of the protocol will been destroyed. Professional investors will likely pull out, causing the price to tank. The only ones left will be armchair investors.
We are very likely to see the days of the sub-$100 Bitcoin return.
Caused by the exact same flaw in the bitcoin protocol that made MtGox shutdown operations
[editline]14th February 2014[/editline]
ninja'd
[QUOTE=SPESSMEHREN;43904248]The operators are blaming a fundamental flaw in the Bitcoin protocol. If that turns out to be true (and, to some extent, even if it doesn't), trust in the integrity of the protocol will been destroyed. Professional investors will likely pull out, causing the price to tank. The only ones left will be armchair investors.
We are very likely to see the days of the sub-$100 Bitcoin return.[/QUOTE]
[QUOTE=Lonestriper;43904260]Caused by the exact same flaw in the bitcoin protocol that made MtGox shutdown operations
[editline]14th February 2014[/editline]
ninja'd[/QUOTE]
"Fundamental flaw in the Bitcoin protocol"
It's a simple bug in the official client, that's only a problem if the operators take shortcuts while writing their site - like MtGox did.
This isn't an issue in the protocol, and it's not even much of an issue in the implementation.
[QUOTE=supersnail11;43904288]"Fundamental flaw in the Bitcoin protocol"
It's a simple bug in the official client, that's only a problem if the operators take shortcuts while writing their site - like MtGox did.
This isn't an issue in the protocol, and it's not even much of an issue in the implementation.[/QUOTE]
Stop blaming exchange operators for what is a shitty implementation of the transaction identification process.
e: 'transaction malleability' or whatever they call it
Really, the same thing again?
Now I wish I'd tried that first.
Though it does seem extremely sketchy.
[QUOTE=cody8295;43904193]I've heard there are BTC laundering services, I'm not sure how they work.[/QUOTE]
Good luck laundering $40 million dollars on some random page on the internet.
[QUOTE=Lonestriper;43904317]Stop blaming exchange operators for what is a shitty implementation of the transaction identification process.
e: 'transaction malleability' or whatever they call it[/QUOTE]
Stop blaming the Bitcoin devs for a shitty implementation of the Bitcoin protocol.
This is HUGELY the fault of the operators:
* They had $40M worth of coins in the hot wallet. In a well-run company or exchange, you only put the coins you need in a wallet accessible from the server - only enough to cover the amount you're going to be exchanging today. You put the rest in cold storage - external HDD, disconnected from the server, or on a flash drive (locked up somewhere, of course), or even printing out the public key. This is entirely the fault of the operators.
* Transaction malleability is only an issue if you implement your site wrong. You should be tracking the outputs of transactions, not the transaction IDs.
* It's likely they stole it themselves. Think - they claim to have all $40m of their coins in a hot wallet, and then they're suddenly stolen by the same attack that Mt. Gox reported. Seems to me that they saw the Mt. Gox problem and decided "hey, we can make some money from this".
[editline]13th February 2014[/editline]
Plus, they either have the site set up to resend transactions if it doesn't notice they went out (which is a terrible idea), or they'd have to manually send them out. Why wouldn't they notice that they're sending out $40M (probably around $2.2M, actually)?
[QUOTE=supersnail11;43904347]Stop blaming the Bitcoin devs for a shitty implementation of the Bitcoin protocol.[/QUOTE]
Uhh
[quote]This is HUGELY the fault of the operators:
* They had $40M worth of coins in the hot wallet. In a well-run company or exchange, you only put the coins you need in a wallet accessible from the server - only enough to cover the amount you're going to be exchanging today. You put the rest in cold storage - external HDD, disconnected from the server, or on a flash drive (locked up somewhere, of course), or even printing out the public key. This is entirely the fault of the operators.
* Transaction malleability is only an issue if you implement your site wrong. You should be tracking the outputs of transactions, not the transaction IDs.
* It's likely they stole it themselves. Think - they claim to have all $40m of their coins in a hot wallet, and then they're suddenly stolen by the same attack that Mt. Gox reported. Seems to me that they saw the Mt. Gox problem and decided "hey, we can make some money from this".[/QUOTE]
Ignoring the fact that even MtGox is/was running cold storage, transaction malleability has already been used to DDoS the blockchain causing bitstamp to stop processing transactions, defraud MtGox and rob Silkroad. I think you're being disingenuous in blaming the operators for an exploit that no-one ever bothered to fix
While developers that are too stupid to use well-known workarounds for a well-known flaw should not be allowed to touch a code editor, that doesn't change the fact that there is a flaw in the Bitcoin protocol (which may or may not be fixable).
Will they change their practices as a result? yeah. Doesn't change the fact that it wasn't their fault transaction IDs could be modified
[QUOTE=Lonestriper;43904418]I think you're being disingenuous in blaming the operators for an exploit that no-one ever bothered to fix[/QUOTE]
[url]https://github.com/bitcoin/bitcoin/pull/3669[/url]
[quote]Ignoring the fact that even MtGox is/was running cold storage, transaction malleability has already been used to DDoS the blockchain causing bitstamp to stop processing transactions, defraud MtGox and rob Silkroad.[/quote]
You know I was saying that Silkroad wasn't running cold storage, because all their bitcoins were just stolen?
This is most likely a scam by the site's operators.
[QUOTE=DrTaxi;43904419]While developers that are too stupid to use well-known workarounds for a well-known flaw should not be allowed to touch a code editor, that doesn't change the fact that there is a flaw in the Bitcoin protocol (which may or may not be fixable).[/QUOTE]
It's not a flaw in the protocol, it's a flaw in the implementation. A well documented one, too.
[editline]13th February 2014[/editline]
[QUOTE=Lonestriper;43904427]Will they change their practices as a result? yeah. Doesn't change the fact that it wasn't their fault transaction IDs could be modified[/QUOTE]
They can't be modified.
This is at least the third time I've told you that.
[QUOTE=supersnail11;43904447][url]https://github.com/bitcoin/bitcoin/pull/3669[/url]
They can't be modified.
This is at least the third time I've told you that.[/QUOTE]
'Fixed' as of yesterday, but even then its still possible.
Also what do you mean they can't be modified? Sure it creates two seperate and identical transactions, but when the fraudulent one is the one confirmed first it is for all intents and purposes modified.
[editline]14th February 2014[/editline]
One thing we can agree on is this probably being a scam. Knowing the drugs markets post SilkRoad 1 its either a honeypot or a scam.
[QUOTE=Lonestriper;43904479]'Fixed' as of yesterday, but even then its still possible.
Also what do you mean they can't be modified? Sure it creates two seperate and identical transactions, but when the fraudulent one is the one confirmed first it is for all intents and purposes modified.[/QUOTE]
It's the same transaction with a few zeroes on the end of the ID. For anyone who properly handles transactions, it's a non-issue.
Until it starts being used as a DDoS
[QUOTE=stomppah;43904114]Who would have thought that you couldn't trust an online dealer. . .[/QUOTE]The website aren't the dealers you ninny. The users are.
Litecoins are better anyway.
[quote]Given the right flavor of influence from our community, we can only hope that he will decide to return the coins with integrity as opposed to hiding like a coward.[/quote]
Yeah, good luck with that.
I wish everyone would just stop with all this crypto-currency bullshit
So, when are they gonna post the suicide hotline number?
Hahaha, bitcoin is such a joke.
[IMG]http://i.imgur.com/6KlkQgD.png[/IMG]
daily chart
the end ?
[QUOTE=Nif90;43905213][IMG]http://i.imgur.com/6KlkQgD.png[/IMG]
daily chart
the end ?[/QUOTE]
That's Mt Gox USD. You know, because they've halted withdrawals and blamed everything on the Bitcoin devs.
Current Bitstamp price is $592
Herein is the reason why Bitcoin isn't ready for mass use.
[editline]14th February 2014[/editline]
Or will never be, perhaps.
So are we gonna get another chance to pick up bitcoins for relatively cheap?
[QUOTE=barttool;43905689]Herein is the reason why Bitcoin isn't ready for mass use.
[editline]14th February 2014[/editline]
Or will never be, perhaps.[/QUOTE]
It never will be because there's a limited amount and once that gets mined up, there are no more. That means over time bitcoins are lost that can never be recovered, more are horded, many are inaccessible, in old accounts or even in the accounts of deceased persons. Eventually there will be a shortage, and it'll collapse and be replaced.
Sorry, you need to Log In to post a reply to this thread.
