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Bitcoin is really a hackers dream.
Last year, some hacker managed to steal huge funds from mybitcoin.com. How got blamed? The operator of mybitcoin.com. No one cared about the actual hacker.
This year, a hacker stole 45k from Bitcoinica. Everyone blamed the operators. The owners replaced the funds. No one cared about the actual hacker.
Now recently more funds where stolen from Bitcoinica. MtGox even knows who the hacker is, but "of course" cannot share this information. So same thing as every time, no one cares about the actual hacker. Everyone blames the operators and tries to lynch them.
Conclusion: In the Bitcoin world it is OK to steal, the blame will always be on the victim. A hacker can even use his real name and real address, and still no one cares. Blame and lawsuits are always on the victims...
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I am slightly sceptical about the scalability issues even in the long term. Storage space or IO throughput aren't even the most crucial limits, network bandwidth is going to be the first real bottleneck Bitcoin is going to hit.
Yeah, seriously. Each node must be able to handle 8Gbps if bitcoin ever operates at VISA levels. Even at the levels they speculate about optimizing it down to would be way above even what most companies can afford. Not that we will be going at VISA levels any time soon, but these issues may start to show way before that. And we are all connected to the internet with one of these... Once Bitcoin reaches VISA levels, the technology will be there - it is as easy as that. |
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Lol, and a typical bitcoin problem, there hasnt been a block for over *2 HOURS*...
Seeing as most people wait 6 confirms for a transaction, I find it very hard that the world economy is going to depend on a system that could take 12 hours potentially to confirm a transaction... Lol, imagine the problems of trying to buy groceries and this happens...
Oh well, time to give more of these useless bitcoins and litecoins away...
Last block was generated only a few minutes ago http://blockexplorer.com/ |
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If what Pirate said in that log that he can bring the price down to 1$ is true, then that means he has about 300,000 BTC at his disposal.
At 6% interest this would mean he needs to buy 18,000 BTC per week, or about 2500 BTC per day.
That's a signficant portion of the newly created coins per day.
If it carries on like this that alone will drive the price up.
Not if you buy it not on an exchange. I think most trades does actually not happen on any exchange, and thus have no influence on the price. Where can you buy 18k BTC per week outside of the major exchanges? OTC, maybe long time contracts with miners, early adopters, Satoshi  |
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If what Pirate said in that log that he can bring the price down to 1$ is true, then that means he has about 300,000 BTC at his disposal.
At 6% interest this would mean he needs to buy 18,000 BTC per week, or about 2500 BTC per day.
That's a signficant portion of the newly created coins per day.
If it carries on like this that alone will drive the price up.
Not if you buy it not on an exchange. I think most trades does actually not happen on any exchange, and thus have no influence on the price. |
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Nobody wants to sell.
the unprecedented number of withdrawal requests i got last night says different. it can't just be a coincidence that they're all withdrawing after the price goes up. i'm sure it's taken a lot of people by surprise; people that are still in the process of getting their coins into gox. Pirate was stating that selling 10s of thousands of coins would not be possible without his lenders. Maybe some got scared to actually loose their coins if pirate just sells them all? |
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More gross negligence then. They can't use customer deposits to pay for legal defense, so what is their excuse for not paying refunds? Childish revenge? It is irrelevant whether or not the funds would be used for legal defense (one presumes they would not). If lawsuits are threatened, as another mentioned, most lawyers would advise stopping refunds until all legal challenges are completed and the court settles refund amounts and claimants. Bitcoinica would not want to refund, and then have a court show they should not have refunded X amount to Y person. So, good show, chaps. You have now delayed your refunds for at least another year or two. ~35% of claimants are marked accurate
~86% of total funds are marked accurate
~25% of total funds have been repaid
So apparently 10 days ago around 25% have already been repaid. It would have been great if those lawsuit hungry people could have waited until all those remaining 70% (after the hack) have been repaid. And if lawsuits are really your thing, sue after that. |
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Wheres my money!!! I sent you all my bitcoinica emails, all my mtgox codes (Only method used to fund account), I filed a claim and haven received ANY emails back. I talked to phantomcircuit in IRC and he told me that my account was small and i should wait an additional 3-4 days. That was two weeks ago. Not getting paid is one thing, not getting a SINGLE REPLY from my emails is another. WTF is taking so long! I want my M*therF*cking MONEY!
Last week was before another ~$350,000 was stolen. I suspect that everyone will now be waiting more than a few additional days for the processing of claims to resume. I am afraid they will completely stop the payouts because of this: https://bitcointalk.org/index.php?topic=93109.0 |
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Why is it highly doubtful? He knew all the passwords, he designed all the code. It's actually probable he stole the funds, with or without the knowledge of the rest of them.
And I'm quite sure that the possibility of this being an inside job is one of the first things the police will investigate. This time around, there's an independent entity which has some records of how the event went down. To our knowledge, Linode never involved law enforcement following the February intrusions and Bitcoinica didn't involve them following the Rackspace intrusion. We know that MtGox has some information about this latest intrusion and that they intend handing the information they have to law enforcement (something beyond Bitcoinica's control and something the intruder may not have counted on). Could Zhou be the intruder? Of course he could. And because of that possibility he has more reason than anyone to demand Bitcoinica file a report with law enforcement. He can't be exonerated if there's no independent investigation. Let's remember that the explanations about why Patrick's email was able to be used to reset the Rackspace password and why the LastPass master password wasn't changed are also inadequate. What makes you believe the police will investigate and care about a Bitcoin crime? Someone stole some hashes? Do hashes go with Bangers and Mash? Wouldn't that be more of an Interpol jurisdiction crime because it's multi-national? I must have missed that meeting. Seriously, I don’t understand why the local police would do anything but stare blankly at the person telling the story. Now a civil suit is a different story…. Exactly my thoughts. So how can one force MtGox to tell who has stolen those funds? |
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Make sure all relevant law enforcement authorities, in all jurisdictions, have all available evidence required to chase the thieves responsible. This includes Bitcoinica involved parties, assisting with all their available data, one hopes.
Jeff, there are two separate issues. Bitcoinica can, and should, still refund outstanding depositors proportionally to their "unstolen" money. But they are not doing that either! There is at this moment, no known acting representative or Bitcoinica doing anything to refund anybody. They need to be forced to get their shit together. From what I read on this forum, genjix was already paying back the funds. He did pause this process because of the recent theft. As Patrick is now apparently gone, genjix should be able to pay back even faster. I think you guys starting to sue him will actually prevent this. Now we all will have to wait longer, if we ever receive anything. So suing now was most probably not the smartest move. |
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You wont get your BTC, but you may be able to get USD.... But I highly doubt it. These people are already broke... Patrick and others have already started this.... Once they go bankrupt, you aint getting shiiiiiit.... Remember tho, you wont get the value of btc today or in the future...You'll prolly get the same value of btc when it was hacked, which was around $4.30 if I remember correctly. Good luck!  Its better than nothing. Didn't they say that they still have 70%? "Only" 30% stolen? Once you drag them to court and they have to file bankruptcy I am sure we will get nothing, or in any case way less than 70%. So how is that better? |
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I feel really sad for the people involved, on both sides. Most likely both Bitcoinica and Bitcoin Consultancy will end up being sued big time and I actually support that. What happened was criminal negligence. There is a possibility of an inside job as well and Tihan should be the one to be investigated but so should the Intersango boys. It's an excuse at this point to say that "we didn't know". That counts for little, I hope.
We'll see what happens, I do think that this will become the first major legal case related to Bitcoin, especially now that USD was also stolen. It's going to be interesting. I support the victims (the depositors) and I hope that both Tihan (mostly him) and Bitcoin Consultancy (they are responsible as well at this point) get what they deserve.
As a final note I'll say that I didn't have a single BTC or USD at Bitcoinica. If I had, it would've been small amounts. The depositors need to blame themselves as well for trusting large amounts to a potential bucket shop but the level of absurdness with these "hacks" (a better word is criminal negligence or an inside job) is such that I'm actually supporting the victims now. Bitcoinica and everyone related to it need to be sued in every relevant jurisdiction.
Yeah, I can confirm that there will be a lawsuit and the targets will not be limited to tihan and intersango. it seems they are going to try to lock down gox as well. i dont think they will get that lucky but it seems the net being cast out is massive... So maybe you succeed in harming/destroying 2/3 of the Bitcoin secondary infrastructure and then we will have these $2 a Bitcoin rate again. Only question remaining is where can we short it? |
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I think the hacker should feel quite safe. We will open a police investigation and get this clear on the police's side. We will not however be able to share such details publicly while an investigation is in progress.
So MtGox knows the identity of the hacker and will file a police report to their local japanese police. Assuming that the hacker is not Japanese, I wouldn't worry too much if I where him. MtGox doing everything "right", does indeed help the hacker: 1) MtGox decided to protect the identity of the hacker. So no need to hurry and make some mistakes. 2) In the police reports MtGox will have to show that the hacker looked like a trusted customer, otherwise MtGox could be to some extend liable 3) ...like a trusted customer, otherwise MtGox will be regulated even more 4) ...like a trusted customer, otherwise other customers could loose trust in MtGox 5) ...like a trusted customer, otherwise MtGox has to explain, why they offer hackers some VIP instant money redraw service, while honest customers have to wait. 6) they "will" file, this could be as late as next week, this buys the hacker even more time. All that said, it is understandable that MtGox does not really want to reveal the identity of the hacker to the public. |
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Hey, being a hacker is the most profitable and stress-free job in Bitcoin world. And you almost never get caught.
Has any BTC hacker been caught? Even worse: Has it ever been really tried to catch one? |
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That's what paper wallets and bank safety deposit boxes are for.
Paper wallets and bank safety deposit boxes? We store everything at pirate these days  |
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what is the difference between mtgox and bitcoinica, from your point of view?
MtGox has a 1:1 relation of input and output. A coin or USD can only come of of MtGox after it did come in. Bitcoinica had leverage. So you could "earn" more coins/USD depending on the MtGox rate than there actually where in Bitcoinica. So Bitcoinica had to "play" against you by selling and buying coins on MtGox. |
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most of the time i would guess he is the one moving down the price.
FTFY |
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Please help me.
Apparently Mt.Gox knows who withdrew the 40k+40k, but they choose to protect the hacker. Roger, you know Mark personally, so call and ask him to whom he did send those funds. I am sure this will shed some light to the whole affair. |
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