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500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

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Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#161

Earlier quoted context omitted.

Your post ran counter to internet-libertarian dogma.

Probably. I regret each time i comment here, but I attribute this to the cultural differences between California based NH-users and the rest of the world.

I suspect the downvotes come from around the world, not just California.

http://www.hackrtrackr.com/

http://news.ycombinator.com/item?id=752262 (shame can't see the vote counts on this one any more)

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#162

I'm on record here as saying a few weeks ago that a BTC bank needs to be established. I reiterate my position. A BTC bank needs to be established, with appropriate data protection features.

Sounds like a startup opportunity.

Absolutely. I wish I had enough time and security knowledge to do it.

A BTC bank will have to have some no-kidding competent security around it.

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#163
post #118

Earlier quoted context omitted.

this is the only way to fight incompetence of some websites. those passwords are (most likely) unsalted vanilla MD5 hashes. just entered a few of them into google from that file and yes, many of them are present in rainbow tables. damn. makes me angry as a programmer how financial website can be this unsecure and easy to compromise.

They look like salted hashes to me.

you can recognize salted hashes from unsalted ones just by looking at them? open the file and search for 5f4dcc3b5aa765d61d8327deb882cf99, at least 1,600 passwords in that list are unsalted. (those without $1$)

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#164
post #150
post #126

Earlier quoted context omitted.

They were hashed using the standard php crypt() method, it generates a salt for every password encrypted. I'm in that database and was able to generate the exact hash. Luckily I use one-time passwords with such things...

Hm, if it is using the same hash all over the world (on your computer it has the same salt as on the MtGox server?), what is the point? I don't understand how this salting scheme is supposed to work? Edit: Ah OK, the salt is encoded in the String.

In theory, it just slows it down so rainbow tables are ineffective (not that people need them anymore), and it requires you to brute force each password than brute forcing one password and then checking it against everything.

In reality, it's all MD5 and the passwords were leaked to a community who are running tons of GPUs to brute force hashes. So it's kind of irrelevant.

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#165
post #126
post #110

Earlier quoted context omitted.

Doesn't look as if passwords were salted, though :-( (Edit: just read in another comment that there seems to have been a global salt)

They were hashed using the standard php crypt() method, it generates a salt for every password encrypted. I'm in that database and was able to generate the exact hash. Luckily I use one-time passwords with such things...

Wait. The effective exchange for bitcoins worldwide is using PHP internally? People are actually trusting this with thousands of dollars in cash?

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#166
post #60

Newest update: Apparently someone got the whole user account database of Mt.Gox I wont publish the link to it though for obvious reasons. Quick analysis: the database is legit, it contains user id, username, email if set, and a bcrypt hash. The hashes seem salted with a global salt.

Something weird is going on. I just downloaded the CSV file and my account was in there(I don't really have any bitcoins at the moment, so that's OK). But I just got a message when trying to log into GMail about 'suspicious' activity being detected on my account. My guess is that someone might have tried logging into my mail. Luckily my email password is unique, so I don't think anyone got in. I hope that other people in their DB was savvy enough not to re-use passwords.

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#167

Earlier quoted context omitted.

It's not cultural differences between California and the rest of the world. It's simply that your statements indicate you're commenting without an understanding the subject matter. This incident occurred because (a) people with large amounts of bitcoin do not always store them securely, and (b) the bitcoin market is very small, and therefore can be destabilised by relatively small amounts of money (a few million doll…

I should say it again: This monetary system have no authority behind it and as such is going to nowhere. Disclaimer: I work as financial analytic and at least have some knowledge of how money work.

Let me explain what I mean: "Real" money are just a tokens, transferring the "Trust" between one market participant to authority and other market participant to authority. By "trust" I mean that every participants believe that Rules in the market will be followed. When you have N market participants you have N*(N-1)/2 ways to exchange "trust". If I understand correctly Bitcoin is N to N system. When you have Authority there are only N ways to exchange it - Each participant to Authority. N^2 is not scalable at least. And N^2 monetary system might work in theory only when there are no problems like this security problem.

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#168
post #126

Earlier quoted context omitted.

They were hashed using the standard php crypt() method, it generates a salt for every password encrypted. I'm in that database and was able to generate the exact hash. Luckily I use one-time passwords with such things...

Wait. The effective exchange for bitcoins worldwide is using PHP internally? People are actually trusting this with thousands of dollars in cash?

I'm not even much of a PHP fan, but it seems like you're unaware of what most people use. Including financial institutions.

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#169
post #152

Earlier quoted context omitted.

I can confirm that the alleged dump is the real deal. Some passwords are md5 hashes, some are salted md5 hashes (utilizing the crypt[0] function). I did not log in for a long time and my password was still unsalted, so I assume that converting to salted passwords was done either automatically on login or on password changes. 0: http://www.kernel.org/doc/man-pages/online/pages/man3/crypt....

I hate to look down my nose at other programmers, because I understand that we all start somewhere, but if you are building a financial exchange and you encrypted passwords using unsalted MD5 at any point in the history of your product, you have proven to me that you are learning as you go, and there is no way in hell I'd trust you with any significant sum of money.

Where do programmers learn about this stuff? Is it taught at schools? Can anyone recommend good books on proper security procedures?

Re: 500k Bitcoins traded in 1h, Mt.Gox market hacked + crash

#170

Earlier quoted context omitted.

I hate to look down my nose at other programmers, because I understand that we all start somewhere, but if you are building a financial exchange and you encrypted passwords using unsalted MD5 at any point in the history of your product, you have proven to me that you are learning as you go, and there is no way in hell I'd trust you with any significant sum of money.

Where do programmers learn about this stuff? Is it taught at schools? Can anyone recommend good books on proper security procedures?

Being a programmer means committing yourself to a life of continued education. Building a secure authentication system? Time to read up on the subject. You don't have to go far before you learn about the vulnerability of MD5 hashes for password storage.
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