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Inputs.io hacked – 4100 BTC stolen

inputs.io

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Re: Inputs.io hacked – 4100 BTC stolen

#131

Post by chii »

clarkmoody wrote: post #38
M4v3R wrote: post #2

4100 BTC = 1.1 mil USD at current prices. These Bitcoins were stolen from website's "hot wallet" (every shared wallet has to operate one to process current withdrawals). This hot wallet was probably too hot though, as it seems that they had most of their coins online, and only about one third offline (other services claim to store 80-90% offline). According to postings on Bitcointalk.org forums people are getting bac…

I see what you did there[3] ;-) Also, it's a shame that this kind of breach happens, but it seems like it's been a while since a "$COMPANY hacked X BTC stolen" headline was out there[1]. There seem to have been more of those in the past and they appear with less frequency, which is a good thing, I guess. [1] Silk Road doesn't count toward this recollection, since it falls under the "Bitcoin $COMPANY busted by the fed…

i m ok with the feds stamping out crime. But i m not ok with the feds stamping out something which also has use outside of crimes. I sincerely hope bitcoin transactions aren't associated with crime, so that its popularity can grow more mainstream.

Re: Inputs.io hacked – 4100 BTC stolen

#132

Post by o2sd98 »

TheTaytay wrote: post #103
o2sd98 wrote: post #8

Which begs the question, how can one determine the veracity of the security claims of website operators? Bitcoins are a convertible currency but are not regulated, insured or guaranteed by any authority. I guess even modern fiat currencies had their teething problems with theft and counterfeiting, so this is not too surprising.

I wouldn't be surprised (or disappointed) if some enterprising company developed a security certification (a la PCI) for Bitcoin-related providers. You wouldn't _have_ to offer it, but the market might favor those that had subjected themselves to that scrutiny.

It would be great to see a market solution to this. Bitcoin is a bit like the gold rush/wild west at the moment which is fine for those who understand this before diving in, but until these types of trust issues are resolved market participation will be limited, which presumably will eventually effect the liquidity of the market for btc.

Re: Inputs.io hacked – 4100 BTC stolen

#134

Post by venomsnake »

chii wrote: post #131
clarkmoody wrote: post #38

Earlier quoted context omitted.

I see what you did there[3] ;-) Also, it's a shame that this kind of breach happens, but it seems like it's been a while since a "$COMPANY hacked X BTC stolen" headline was out there[1]. There seem to have been more of those in the past and they appear with less frequency, which is a good thing, I guess. [1] Silk Road doesn't count toward this recollection, since it falls under the "Bitcoin $COMPANY busted by the fed…

i m ok with the feds stamping out crime. But i m not ok with the feds stamping out something which also has use outside of crimes. I sincerely hope bitcoin transactions aren't associated with crime, so that its popularity can grow more mainstream.

If you have read the whole story of Silk Road they didn't busted them for bitcoins but for drug trading. And they explicitly stated there were legitimate uses.

From what I have read the current Fed stance is - if you think BitCoin is money, we are ok with that as long as you comply with all regulations.

Re: Inputs.io hacked – 4100 BTC stolen

#135

Post by venomsnake »

Taylorious wrote: post #30

So I have seen several of these stories pop up and I am still kind of confused by them. Are these hackers actually getting "real" money at some point? Are they able to cash out these bitcoins to USD or something else in a reasonable time-frame, or do they simply have a large amount of "fake" money that they can use for very specific goods and services?

It is possible ... but you need some specific conditions - someone willing to convert bitcoin for real money in a jurisdiction that has lax money laundering laws, then he must somehow launder them.

Re: Inputs.io hacked – 4100 BTC stolen

#137

Post by grey-area »

aianus wrote: post #112
grey-area wrote: post #110

Earlier quoted context omitted.

A $5 wrench or a jail cell will deal with your encryption.

I don't think the US is at the point where they torture citizens for private keys. And they'd only be able to use jail as leverage by offering a reduced sentence. Even then, you might refuse if, for example, you'd rather stay in prison and leave the money to your family.

Even then, you might refuse if, for example, you'd rather stay in prison and leave the money to your family.

Somehow, I don't think the government will leave you that option ;) You'll stay in prison and have the means to use the bitcoins confiscated or outlawed. They can also confiscate all your other assets, like the house your family lives in.

There are many options available to a sovereign government which mean that relying on purely technical measures will not defeat them, because they have a monopoly on force, up to and including lethal force.

Re: Inputs.io hacked – 4100 BTC stolen

#138

Post by aktiur »

hvidgaard wrote: post #114
ninjin wrote: post #68

Earlier quoted context omitted.

Well, one attack that I can come up with immediately is to just create a new wallet, transfer the bitcoins from the flagged wallet, then cash out from the new wallet. Your obvious retort would then be "Aha! But how about we just track any transactions from the flagged wallet and flag those wallets too!", sure, but then you open up for an alternative attack where you could get your wallet flagged and then send a minim…

You can track the individual transactions. So if I have some tainted coins and I really do not like you. I know your main wallet and transfer 1$ worth of tainted coins to you. You can just transfer the tainted coins out of the wallet and that is it - the rest of the coins in your wallet are perfectly fine. That said, tainting is not a path we want to go down. The potential for abuse is enormous, and rendering more an…

Except bitcoins are completely fungible. Once the bitcoin is transferred in the wallet, you can no longer make any difference with the other bitcoins in the wallet ; it has no distinct identity anymore.

Think transaction into a bank account : you cannot separate the money that was transfered in from what was already there.

We can taint accounts, but not individual coins.

Re: Inputs.io hacked – 4100 BTC stolen

#139

Post by eterm »

mrb wrote: post #89
[deleted] wrote: post #79

Earlier quoted context omitted.

[deleted]

Wait a few years for the Bitcoin ecosystem to mature, and all the security mechanisms developed by banks (and more advanced ones that are just inapplicable to cash) will appear and be applied to Bitcoin: theft insurances, properly secured web wallets (HSM, userbased multi-sig, cold wallets, etc), tamper-proof hardware wallets, etc.

And at which point we'll be back to seeing 0.3+2.9% on every transaction to cover the costs of such...
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