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Silk Road 2 Hacked, All Bitcoins Stolen

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Re: Silk Road 2 Hacked, All Bitcoins Stolen

#121
Interesting...

I’ve included transaction logs at the bottom of this message. Review the vendor’s dishonest actions and use whatever means you deem necessary to bring this person to justice. More details will emerge as we continue to investigate.

Presumably the particular addresses used will be noted for future reference by vengeance-minded parties? Perhaps the list should be referenced by popular client software so innocents can avoid receiving BTC, even indirectly, from the blamed addresses...

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#122
post #63
post #3

Given illegal nature of Silk Road 2, I can't help but be suspicious of this explanation of the hack. If someone's sufficiently willing to flaunt laws as to operate a site devoted to selling contraband, what stops them from taking advantage of their position of power and stealing from their users?

It's entirely possible to be in support of a free and peaceful drug trade, while at the same time being morally against theft. I don't know why you're lumping the two.

Because most people feel an ethical obligation to follow the law. (And I'm not saying this as a member of this group). So if you find a person who does not feel compelled to follow the law, they could be an ethical anarchist, or altogether unethical. Purely given how fringe anarchism still is, I don't think it's too unreasonable to guess that the person is in the second category.

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#123
post #25
post #11

Earlier quoted context omitted.

Yeah. The moment I got to " a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as “transaction malleability”" I was like "Riiiiight....". It's not even 'recently discovered', and as far as I understand it it does not let anyone to drain other persons' wallet (if it did, that'd be a killer to entire bitcoin the moment it was discovered)

They wanted to exit the business from the start. Saw a convenient time with everyone discussing a vulnerability, claim right away that vulnerability was used to steal all the money to avoid backlash from users.

I doubt drug dealers care about the distinction between "you stole my money" vs. "you lost my money". Either case SR2 admin better do a good job of hiding.

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#124

This is why bitcoin is a sham. The premise of perceived bitcoin value is based on the greater fool theory. What the hell were any of these people thinking? http://en.wikipedia.org/wiki/Greater_fool_theory

That has nothing to do with what has happened here and has been argued ad nauseam in other threads already. In short: the only aspect of bitcoin that may be considered an instance of the greater fool theory is the idea that it is a guarenteed investment. Obviously it is not, and this news has nothing to do with bitcoin as an investment vehicle anyway.

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#125
post #115

This is almost certainly hogshit, and anybody who has been paying even a little bit of attention over the last week can probably smell it. The "hole" in MtGox's security was a social one. You could contact customer support and claim that you had not received your coins, and they could re-issue you new ones if they chose to. There is also no evidence that this ever happened. This wasn't, and isn't, a flaw in the under…

If SR was re-issuing coins automatically, it's because they were being intentionally stupid.

MtGox was re-issuing coins automatically. Due to this, Gox has lost money. Possibly a huge amount. Were they being intentionally stupid, or just stupid?

Source: https://news.ycombinator.com/item?id=7222690

This transaction malleability flaw is certainly a convenient excuse. But if these people implemented their wallet software in the same manner as Gox, then they would've suffered the same fate: a loss of thousands of coins, which is exactly what they claim happened.

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#126

The claim that this was caused by transaction malleability rings hollow. The reference client (github.com/bitcoin/bitcoin) does not resend transactions because of malleability. The only way you can have double transfers due to malleability is if you are manually reviewing transfers and re-sending them yourself manually. This seems like a very convenient scapegoat.

It's recently been suggested that it actually is possible to drain someone's wallet using transaction malleability, if they are not using the reference software. See below:

https://anders.io/the-troublesome-history-of-the-bitcoin-exc...

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#127
post #61

How much was stolen? How many bitcoins are we talking about. It isn't very clear.

at the top of the article: Update: The amount of BTC that was stolen was calculated by Nicholas Weaver @NCWeaver – Computer Security Researcher, to be around: 4474.266369160003BTC that are with the value of about $2.7 Million.

That's a lot of significant figures for a round number...

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#128
post #115

This is almost certainly hogshit, and anybody who has been paying even a little bit of attention over the last week can probably smell it. The "hole" in MtGox's security was a social one. You could contact customer support and claim that you had not received your coins, and they could re-issue you new ones if they chose to. There is also no evidence that this ever happened. This wasn't, and isn't, a flaw in the under…

If SR was re-issuing coins automatically, it's because they were being intentionally stupid. MtGox was re-issuing coins automatically. Due to this, Gox has lost money. Possibly a huge amount. Were they being intentionally stupid, or just stupid? Source: https://news.ycombinator.com/item?id=7222690 This transaction malleability flaw is certainly a convenient excuse. But if these people implemented their wallet softwar…

[deleted]

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#129
Okay, I'm going to go out on a branch and throw up a strange hypothesis. I don't have any stake in the Bitcoin or drug dealing games, apart from generalized anarchistic tendancy:

Silk Road 2 was a project set-up by some government agency or gangsters. The overall plan is to eliminate competition and sow uncertainty around both Bitcoin and Silk Road type unregulated markets with anonymous owners. The "transaction malleability" issue is totally unrelated to this event - it's not an exploit that can be used to 'steal' Bitcoins, only to corrupt the blockchain and/or mess with transactions (eg. cause them to fail or end up in limbo).

"We were planning on re-launching the new auto-finalize and Dispute Center this past weekend, and our projections of order finalization volume indicated that we would need the community’s full balance in hot storage." - a silly excuse for such an obvious mistake. No imaginable system would require the entire balance of the community to be stored in such a way, no reasonable systems architect would do this.

"The details we have on the hacker are below. Stop at nothing to bring this person to your own definition of justice. We normally do not doxx anyone, and hold user information sacred. But this is an extreme situation affecting our entire community, and all three users who have exploited this vulnerability are very much at risk until they approach us directly to assist with any information. Do not reveal any details of the attack. This will jeopardize your reward. Contact us directly. If anyone has purchased or sold to these usernames, expect generous bounties for any information you can contribute which leads to identification." - hold on, where's the evidence? What is he going to do with any information provided by his internet personal army? Why should others do his work for him in tracking these supposed hackers down?

"Few hours before the announcement we at DeepDotWeb received a mail saying: 'SilkRoad hacked, 150 BTC stolen, you heard it first from me' this was sent to us by a reddit user who claimed since yesterday he was going to hack SR and steal the sites money" - Wouldn't that just be the perfect cover? Get some small-timers to grab a little and point the finger at them while he makes off with the much larger remainder. Besides, didn't this guy just say that he needs help tracking the attackers down? How does he then know enough to attach addresses to particular handles and countries? I admit some unfamiliarity with both Bitcoin and Silk Road/2 here so I hope somebody else can fill me in on this.

"It takes the integrity of all of us to push this movement forward. Whoever you are, you still have a chance to act in the interest of helping this community. Keep a percentage, return the rest. Don’t walk away with your fellow freedom fighters’ coins." - An attempt to insinuate that the 'thief' is a member of the Bitcoin in-group, alongside the author. An appeal to those already attached to the in-group to 'join' the author in 'solidarity' and painting this event as an battle to defend Bitcoin itself. One that was already 'lost', I note.

"Multi-signature transactions are the only way this community will be protected long-term." - oh yes, if ditching anonymity by tying identities and transactions together in an easily auditable fashion is 'protection' in this business.

"I should have taken MtGox and Bitstamp’s lead and disabled withdrawals as soon as the malleability issue was reported. I was slow to respond and too skeptical of the possible issue at hand." - I believe this to be a stretch of the truth, weren't the MtGox and Bitstamp shutdowns totally unrelated to this 'exploit'?

"If this financial hardship places you at risk of physical harm, contact me directly and I will do my best to help you with my remaining personal funds." - Give us all your information and I promise I'll send you some money!

"Hindsight is already suggesting dozens of ways this could have been prevented, but we must march onward." - Translation: I just lost a lot of your money, trust me so I can do it again or lose faith in Bitcoin entirely.

"In retrospect this was incredibly foolish, and I take full responsibility for this decision. I have failed you as a leader, and am completely devastated by today’s discoveries." - Awesome, an anonymous guy with nothing to lose takes full responsibility.

I'd love to hear some thoughts on these comments and if anybody is thinking along the same lines? Alternatively, I'd also love to hear good arguments against this position.

Re: Silk Road 2 Hacked, All Bitcoins Stolen

#130
post #46
post #15

Not having very much knowledge about the financial industry - is this also an issue with marketplaces that deal with fiat monies? i.e. Dwolla, Balanced, Stripe, Venmo, all serve as intermediaries for moving money - do these companies have bank accounts that hold onto massive sums of money? What protections would go into keep those accounts secure?

The financial industry is just as insecure if you hold actual cash. The solution the industry has is not to hold cash. Since no one has money, and all the banks have insurance, they just reverse the transactions in 90% of cases, and in the other 10, like ATM fraud, use insurance. But seriously, go to a bank and try to withdraw $90K in cash. Also, if you make off with 90K in cash the finance industry has people with g…

You could easily go to a bank and withdraw 90k in cash. There'd be paperwork involved, but even small bank vaults hold far more money than that.

This chart is old (1992) but gives an indication of the amount of money in a bank vault:

http://i.imgur.com/hVZWFR5.png

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