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New Silk Road hit with $2.6 million heist due to known Bitcoin flaw

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posted on Feb, 14 2014 @ 11:12 AM
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"Transaction malleability," which worried Mt. Gox and Bitstamp, strikes again.

Not only are Bitcoin trading sites like Bitstamp and Mt. Gox susceptible to the recent accleration of the "transaction malleability" problem, but apparently the Silk Road—or at least its newest incarnation—is too.

...

"They have a model where when you do a withdrawal it monitors the blockchain and if it doesn’t go through after a certain time it tries again. Rather than looking for the contents of the transaction it looks for the transaction ID. What the person does is they see the transaction posted and modified it slightly so the ID is different, and they broadcast that widely. They’re not fake transactions. It’s broadcasting a version of the same transactions but with a different transaction ID number. Otherwise they are identical."

"It’s the accounting system that effectively has a bug in it. Part of the reason that the transaction ID is not protected by the signature is so I could say pay 100 bitcoins to this address, and other people can add in. That’s the reason why transaction ID are not cryptographically protected. It is a feature, not necessarily a bug."

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Sounds like it was a known possible exploit. Sooner or later someone would make use of it if it was there.




posted on Feb, 14 2014 @ 12:09 PM
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reply to post by roadgravel
 


This is very interesting. Mt.Gox has shutdown all its bitcoin withdrawals for the last week and TBH i didn't really believe the excuse they were giving about a possible exploit. I thought they were just doing it because they were worried that BTC was going to crash after the Russian ban.

So all in all this is a good thing. The developers will have to fix this exploit and crypto currencies will emerge stronger than ever. As far as i know this exploit affects all of the crypto currencies out there.



posted on Feb, 14 2014 @ 12:18 PM
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If you ask me, Bitcoin is such a scam...just you wait, there will be a lot more problems with bitcoin later on....just you wait....



posted on Feb, 14 2014 @ 12:54 PM
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reply to post by Skywatcher2011
 


If BTC is a scam then who is doing the scamming?



posted on Feb, 14 2014 @ 01:09 PM
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reply to post by PhoenixOD
 


The ones who are getting you to put all your real world assets into a virtual one....



posted on Feb, 14 2014 @ 01:55 PM
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reply to post by chadderson
 


lol i dont see anyone forcing anyone to put money into crypto currencies. People use them because they want to.

Credit cards and banks are a scam for sure as they charge for their services but crypto currencies don't. Credit cards and banks are virtual currencies as well, its all just numbers in computers. When you deposit cash at the bank it doesnt go into a box with your name on it. Your cash just becomes virtual, nothing more than a number in the computer system.

Real world currencies are not real assets either as they are fiat, backed by nothing. Central banks constantly devalue your money by printing more of it year after year so you keep having to get loans and pay them interest, its all a game of enforced slavery to them. There can be no hyper inflation with crypto.

So in reality the only 'scamers' are people trying to keep your money OUT of virtual currencies because its not making any money for the worlds elite fat cats. Crypto currencies take back the power from the evil elite.


edit on 14-2-2014 by PhoenixOD because: (no reason given)



posted on Feb, 14 2014 @ 05:54 PM
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PhoenixOD
reply to post by Skywatcher2011
 


If BTC is a scam then who is doing the scamming?


Stock brokers and financial analysts who lost their jobs at Wall Street.



posted on Feb, 14 2014 @ 06:09 PM
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reply to post by Skywatcher2011
 




Stock brokers and financial analysts who lost their jobs at Wall Street.


Neither of those have anything to do with bitcoin or can make money from it.

There's simply is no 'scam' element to it. The people who made the system are anti-scam. There are no hidden costs or charges the only people who are getting rich are the people using BTC, not the people who created it. They dont get 'paid' if you use it or not.

Investors get rich, that doesn't make it a scam.



edit on 14-2-2014 by PhoenixOD because: (no reason given)



posted on Feb, 14 2014 @ 06:16 PM
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PhoenixOD
reply to post by Skywatcher2011
 




Stock brokers and financial analysts who lost their jobs at Wall Street.


Neither of those have anything to do with bitcoin or can make money from it.

There's simply is no 'scam' element to it. The people who made the system are anti-scam. There are no hidden costs or charges the only people who are getting rich are the people using BTC, not the people who created it. They dont get 'paid' if you use it or not.

Investors get rich, that doesn't make it a scam.


edit on 14-2-2014 by PhoenixOD because: (no reason given)


Please show me Bitcoin's Income Statement and let's find out together on this,
edit on 14-2-2014 by Skywatcher2011 because: (no reason given)



posted on Feb, 14 2014 @ 06:30 PM
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reply to post by Skywatcher2011
 


Its clear you dont understand how the system works. There is no central Bitcoin organization making money selling coins to people. That's the whole point of the system.

Coins are issued as a reward for people helping out in the processing of any bitcoin transactions. When people 'mine' for coins they are lending their computing power to the bitcoin system so it can process and verify transactions. This takes the place of the large computer systems that banks have to buy and maintain to process all their financial transactions.

So 'Bitcoin' is not making money from it. There is no balance sheet for profit and loss. The coins are given away free to the people helping to run the system.




edit on 14-2-2014 by PhoenixOD because: (no reason given)



posted on Feb, 14 2014 @ 06:38 PM
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reply to post by PhoenixOD
 


So it is essentially a stock...so stock investors make money on the gains/lose money on loss of the value of an artificial currency?



posted on Feb, 14 2014 @ 06:45 PM
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reply to post by Skywatcher2011
 


yes its a bit like a stock. But a stock represents the value of a physical entity ie a business.

Id say bitcoins are closer to a commodity like Gems. Gems are worth money because they rare (a finite resource) and people are prepared to pay to have them. That's what gives them value . If no one wanted gems they wouldn't really be worth anything.

But yes you are right like a stock, investors can make or lose money. But they dont 'buy' bitcoins from a central bitcoin organization. Bitcoins are given out free. When people buy bitcoins they are buying them off other people who own them. Not from a bank or the place that issues them.


edit on 14-2-2014 by PhoenixOD because: (no reason given)



posted on Feb, 14 2014 @ 07:01 PM
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I wonder if the NSA had anything to so with this. Take all the money and maybe it goes away. I would think they have the resources to do it.



posted on Feb, 14 2014 @ 07:04 PM
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reply to post by PhoenixOD
 


And at the bottom of your page it says this Are you using delusional logic?




posted on Feb, 14 2014 @ 07:22 PM
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reply to post by mikell
 


lol , not even sure what you mean by that but thanks anyway.
edit on 14-2-2014 by PhoenixOD because: (no reason given)



posted on Feb, 15 2014 @ 07:13 AM
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If anyone wants to get on the Alt currency ladder there's a new site giving away coins.
Ref Link
Straight Link

The site is Qoinpro, still in the beta stages but worth a go if you would like to get in on multiple Alt coins



posted on Feb, 15 2014 @ 08:37 AM
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I am surprised anyone would still use Silk Road after what happened. It just seems like the silk road 2 was a trap set up by the NSA/DEA. I would not be surprised if an alphabet agency or even the FED had a role is this latest attack.

They are very scared of the bitcoin and what it brings to the table.




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