Bitcoin Forum

This just in from mtgox

Huge Bitcoin sell off due to a compromised account - rollback

Mark Karpeles
posted this on Jun-20 04:07

The bitcoin will be back to around 17.5$/BTC after we rollback all trades that have happened after the huge Bitcoin sale that happened on June 20th near 3:00am (JST).

Service should be back by June 20th 10:00am (JST, 01:00am GMT) with all the trades reversed and accounts available.

One account with a lot of coins was compromised and whoever stole it (using a HK based IP to login) first sold all the coins in there, to buy those again just after, and then tried to withdraw the coins. The $1000/day withdraw limit was active for this account and the hacker could only get out with $1000 worth of coins.

Apart from this no account was compromised, and nothing was lost. Due to the large impact this had on the Bitcoin market, we will rollback every trade which happened since the big sale, and ensure this account is secure before opening access again.

wow

So he got away with $1000 worth of BTC at $0.01 per coin?  ouch

This also confirms that someone has 500k BTC in his mtgox account and he is most likely the person behind constant price manipulation on Bitcoin market.

I'm pretty sure it's extremely easy to look for all withdraws on the compromised account and talk to the processor that is handling it and get it cancelled.  This is easy peesy stuff to do.  

Mtgox is doing a great job in this situation.

well if it was rolled back then it wouldn't be at 1 cent per coin.  Probably just about 100 coins worth.

That guy who owned that many coins better get smart..

it's really a big account.

I wonder who has the balls to keep that much $$ in an online account ($7.5 million)

Bitter-Sweet.

I was a little excited about my $2.00 emergency buy order that was filled during all of this.

I expect they did not sell all the BTC at $0.01, they just sold such a large amount that they went through every buyer (including me) all the way down to $0.01.  Every single buy order from the current price at that time all the way down to the bottom was filled before the sell order was complete.  Therefore they would have made a lot more than $1000 on the first BTC they sold...

250k, but it's really neat that you think this, with no points of proof whatsoever. Cute, really.

Wait a minute. Where did the 500K btc number come from?

This thread title is misleading.

mtgox itself wasn't hacked.  It was just a whale account that was.

Not if he sent it in bitcoins, but I have a feeling the price had already recovered to ten bucks or so by the time he tried to withdraw so he couldn't make off with that much.

1++

Sounds like MTGOX  is getting things taken care of. Positive news.

I was worrying so much that i decided to stop worrying and played a few games of COD, and everything sorted itsself out  8)

If you have money on Tradehill it is time to buy bitcoins. You just heard from MTGOX that they will reset the price  at over 17. Good luck

Ok, have to admit they did handle it quite well if this is true. But what happen with all the coins that people managed to withdraw? Find it hard to believe only the hacker managed to do it in time. Or did they block withdraw funds really fast?

On the real stock market in this situation, trading would be suspended...I think mtgox and tradehill should look into this...  The massive carnage could be avoided.

http://en.wikipedia.org/wiki/Trading_halt

LOL... mtgox has no control of the price. Oh man that's a doozy. The price is controlled by what someone is willing to pay for them.

Yes, but they are rolling back to right when everyone had bids and asks right at 17.5, so it will start there. It may crash quickly though, but I'm not sure.

I had a buy order at ~16, glad I cancelled it before the drama

What would it matter it would be rolled back anyway

It was. Their entire database was posted on the forums (with hashed passwords). The link has been pulled, so I'm not going to post it here, but MtGox was definitely compromised.