Drug site Silk Road wiped out by Bitcoin glitch

Skit

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2.7 million in bitcoin gone. Aww....

"The revived online black market Silk Road says hackers took advantage of an ongoing Bitcoin glitch to steal $2.7 million from its customers.

The underground website's anonymous administrator told users Thursday evening that attackers had made off with all of the funds it held in escrow. Silk Road serves as a middleman between buyers and sellers, temporarily holding on to funds in its own accounts during a deal. Buyers put their money into Silk Road's accounts, and sellers withdraw it.

At the time of the attack, here were about 4,440 bitcoins in Silk Road's escrow account, according to computer security researcher Nicholas Weaver.

The news has shaken confidence in Bitcoin. Prices dropped sharply overnight, though they've since bounced back to about $660.

Related story: What is Bitcoin?

Silk Road can only be accessed on the deep Web using Tor, a special program that hides your physical location. The FBI shut down Silk Road and arrested its alleged founder in October, but shortly thereafter, tech-savvy outlaws started Silk Road 2.0 in its place.

It is primarily used to buy and sell drugs. Bitcoins are the only kind of currency accepted on the site, because they are traded electronically and are difficult to trace to individuals. But Bitcoin accounts also lack protections that most bank accounts have, including government-backed insurance.

That means the bitcoins stolen from the Silk Road users are gone forever.
A look at rebuilt drug bazaar Silk Road
A look at rebuilt drug bazaar Silk Road

The new site's administrator, a faceless persona known only as Defcon, posted a nerve-racking message Thursday night that began with, "I am sweating as I write this."

He said hackers took advantage of the same flaw in Bitcoin that knocked major exchanges Bitstamp and Mt.Gox offline over the past two weeks. That glitch allowed Silk Road hackers to repeatedly withdraw bitcoins from the site's accounts until they were empty.

In detailing the alleged hack, Defcon listed the online identities of the three supposed attackers and shared records of the transactions. And in an example of the kind of dark, dangerous world of illegal drug trade, Defcon called on the public to "stop at nothing to bring this person to your own definition of justice."

"I failed you as a leader and am completely devastated by today's discoveries," Defcon wrote, adding that the website should have followed the approach of other major Bitcoin exchanges and halted withdrawals due to the Bitcoin system flaw. Silk Road has since temporarily shut down.

Many have accused the site's administrators of faking the hack and stealing the money themselves. But in a world where drugs are outright illegal -- and there's little to no regulation of Bitcoin transactions -- it's difficult to prove anything.

It's just his kind of bad news that smears Bitcoin's credibility and keeps the currency from going mainstream.

Computer developers around the world have been working on software updates that allow exchanges to make up for the security hole in Bitcoin. The largest exchange, the Slovenia-based Bitstamp, said it was implementing a fix as early as Friday."


Drug site Silk Road wiped out by Bitcoin glitch - Feb. 14, 2014

My money says Defcon is in on it.
 

rockstar232007

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If seeing these idiots (SR users) continuing to chase their own tails, isn't a clear indication that drugs are bad, then I don't know what is?
 

Skit

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If seeing these idiots (SR users) continuing to chase their own tails, isn't a clear indication that drugs are bad, then I don't know what is?
Well if you're going to go in that direction. How does people buying drugs show that they are bad? I don't think drugs are bad. The abuse of drugs can be a bad thing. Drugs save peoples lives every day. More people die from abuse of prescription drugs than street drugs.
 

rockstar232007

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Well if you're going to go in that direction. How does people buying drugs show that they are bad? I don't think drugs are bad. The abuse of drugs can be a bad thing. Drugs save peoples lives every day. More people die from abuse of prescription drugs than street drugs.
Not that I don't half agree with you, but I was specifically referring to the fact that they continue to do these types of things over and over again, and continue to get screwed over...over and over again. It's a vicious (and stupid) circle.
 

Skit

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Not that I don't half agree with you, but I was specifically referring to the fact that they continue to do these types of things over and over again, and continue to get screwed over...over and over again. It's a vicious (and stupid) circle.
I'm not sure what you are referring to. They do what type of things over and over.
 

rockstar232007

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I'm not sure what you are referring to. They do what type of things over and over.
Continue to buy drugs on the "black market", using unprotected "currency", and thinking that it's "totally safe".
 

bertzie

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Criminals become victims of crime.

Do you think they'll call the authorities?
 

Biddlin

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It's a lot more fun to land the Dakota on one of those little strips and pickup the package yourself!
 

Rich

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"The revived online black market Silk Road says hackers took advantage of an ongoing Bitcoin glitch to steal $2.7 million from its customers.
Yeah... "hackers" did it... that's the ticket!



My money is riding on that the BIG money did it.
 

ATM47

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Being one of the resident dinosaurs here this thread is my first
time hearing the term bit coin. I want to make sure I have this
right. Bit coins are actually a bunch of zeros and ones floating
around in "cyberspace". Correct?
..and someone hacked into "bitcoin.com" and "stole" a bunch
of their zeros and ones. Correct?
..and the "stolen" zeros and ones were the "money" some
real world drug dealers were running their business with so
they had to shut down. Correct?

I see where this is gonna go.

New dictionary words!
YAY!:)

cybercurrency
cybercounterfitting
cyberdeficit
cyberrecession
cyberboom

..and many more.
 

upl8tr

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The thing is, with the kind of money involved here it should be clear to everyone that there are major crime syndicates involved and I for one, wouldn't like to rip any of them off.

If you've ever seen even one video or pic of what the mexicans cartels do to each other never mind the mafia, triads and the Russians etc;....

No, not for me thank you very much! :shock:

If you really want to rip people off for millions, become a banker. No threat of death or jail time and government backing, now that I can understand...
 

Rich

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Being one of the resident dinosaurs here this thread is my first
time hearing the term bit coin. I want to make sure I have this
right. Bit coins are actually a bunch of zeros and ones floating
around in "cyberspace". Correct?
..and someone hacked into "bitcoin.com" and "stole" a bunch
of their zeros and ones. Correct?
..and the "stolen" zeros and ones were the "money" some
real world drug dealers were running their business with so
they had to shut down. Correct?

I see where this is gonna go.

New dictionary words!
YAY!:)

cybercurrency
cybercounterfitting
cyberdeficit
cyberrecession
cyberboom

..and many more.
Exactly. It's much like any other bank or business in that it conducts transfers and keeps track of funds digitally, the only difference is that it is its own form of currency, much like the dollar which is also transferred and tracked digitally. The US dollar doesn't like competitors though.
 


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