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61  Economy / Exchanges / Re: [ANN] Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation on: August 15, 2012, 07:16:37 PM
Bitcoin is a global currency, but there are many countries out there, where a Bitcoin theft is not even illegal.

Really? Feel free to name one. Anything that can be shown to "have value" (utility) is usually illegal to remove from another person's control against their will - there have been plenty of court decisions in various parts of the world to that effect over the years. Including "virtual Internet stuffz".

62  Bitcoin / Bitcoin Discussion / Re: Want a vanity address? on: August 05, 2012, 07:30:53 PM
I'll dig up the link but I was told third party generation was solved.

You're correct, I edited my post. My bad. However, you need to offer to use that method ("Split key address generation") as well for it to work Wink

63  Bitcoin / Bitcoin Discussion / Re: Want a vanity address? on: August 05, 2012, 07:25:26 PM
I'll make you one.

Reply in this thread and I'll PM it to you Smiley

I spent a ridiculous amount of time building/compiling it for mac, so I feel like I should use it.

Since no one, as far as I know, have built support for third party generation of vanity addresses without the person generating the address also knowing the private key I'd strongly recommend against doing this. Not only will people need to trust you, if anything happens later they'll most certainly believe you scammed them.

(Did my build instructions for Mac still work or did they need updating?)

edit: Oops, I hadn't read the vanitygen thread recently - I was wrong. It is possible to outsource address generation, but then Coinabul needs to offer to do it that way. It's called "Split key address generation".
64  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: August 03, 2012, 07:23:30 AM
Well, first of all we can forget the alter-ego story. Tihan Seale has confirmed that Zhou indeed is who he says he is, and I see no reason why he should lie.

Does the community accept Tihan Seale as an upstanding member of the community? If so I guess we can accept that ZT is indeed who he says he is?

If the community does accept this, then do the people who believe ZT not to be who he says he is have anything to say to the matter?

Gavin has verified Tihan to be what he says he is, and if Gavin isn't an upstanding member of the community we're in a lot of trouble.

65  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: August 01, 2012, 12:52:11 AM
I only post public clarification when too many people are questioning the same thing

And yet nothing in that post explains you posting on your QQ that you're selling LR, which turns out to come from the same LR account you claim "the hacker" created.

66  Bitcoin / Bitcoin Discussion / Re: BTC-E hacked - still unfolding on: July 31, 2012, 06:38:23 PM
I'm guessing there's a timing attack on LR's end.

Oh that brings back memories from the old embedded system days. Interesting hypothesis - I wouldn't be surprised to see Internet services not realizing such attacks very well can be performed over Internet-distances if you get enough tries.

Posting additional information for those who plan on making their own password-validation code not having heard about this class of attacks before: http://www.computerworld.com/s/article/9179224/Researchers_Authentication_crack_could_affect_millions

(However, if there is such an information leak on LR's side we would surely see other services accepting LR to be affected as well)

67  Economy / Service Announcements / Re: BTC-e Trading Resumed | Bitinstant deposits/withdrawals disabled for now. on: July 31, 2012, 06:01:37 PM
It sounds like they also adopted good security practices

Explaining the external use of their LR key with "brute forced" has me worried, I don't see how that's computationally possible: https://bitcointalk.org/index.php?topic=96831.msg1068030#msg1068030

What additional security practices are put in place in case the hackers are able to extract new replacement keys easily?

68  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 31, 2012, 04:57:26 PM
Zhou has still not been able to explain selling LR using his own QQ account from the LR account Zhou said "the hacker" created.

You conveniently pass this over every time.

As I have been accused of sockpuppetry many times now, I will now withdraw from this thread

Thank you. If you didn't notice, you passed over the LR-selling once again in your first reply. I consider the question of shilling to have been answered now.

(I'm still asking for anyone who has met either Zhou or Tihan in person to step forward)

69  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 31, 2012, 04:05:03 PM
This is a classic example of victim blaming.

Zhou has still not been able to explain selling LR using his own QQ account from the LR account Zhou said "the hacker" created.

You conveniently pass this over every time. Your shilling is beyond obvious - I just can't figure out why.

https://bitcointalk.org/index.php?topic=95795.msg1063838#msg1063838

https://bitcointalk.org/index.php?topic=95795.msg1063850#msg1063850

So, I have done a deal "for a friend" on AurumXchange using my own account.

And I have also done a deal "for a friend" on QQ using a friend's account?

Both happened before I had any clue of the investigation.

I did the deals, but all in much larger amounts with my own account.

70  Bitcoin / Bitcoin Discussion / Re: BTC-E hacked - still unfolding on: July 31, 2012, 02:24:08 PM
From https://btc-e.com/news/81:

Quote
At 04:07 MSK (GMT+4) our LR API Secret Key was compromised. It's 16 uppercase, lowercase letters and digits. They may have bruteforced it for long.

Really? That would make it the longest known brute forced key I've heard of.

caveat: I haven't studied the actual implementation in LR, maybe there are shortcuts. I would've just assumed to end up in the right ballpark with an estimation along these lines:

GPU brute forcing speed - let's go with 3Mhash/s (SHA-1) based on http://golubev.com/gpuest.htm

Time-to-find 16 char l/U/# at 3Mhash/s estimation using http://lastbit.com/pswcalc.asp

Result: 510892508003511 years

(Feel free to halve for each added GPU and a final halving for 50% time instead of 100% - assume a lucky hacker)

71  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 31, 2012, 01:10:09 PM
Funds have been stolen? They have been in some sort of safe deposit at ZT, and now they are on their way to the creditors. All is fine.

Not quite.  ZT stole 20k of bitcoins - only 15k have been recovered.  What happened to the other 5k?  Are we giving them to ZT as a thank you gift?

40K BTC and 40K USD were taken.

https://bitcointalk.org/index.php?topic=93074

72  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 30, 2012, 07:30:58 PM
Rackspace?   I thought it was Linode?

~

Linode, March, 40K BTC
Rackspace, May, 18K BTC + loss of database
MtGox, July, 40K BTC + $40K

I'm sure the list is not complete.
73  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 30, 2012, 02:40:33 PM
This tells a lot about your attitude. I hope it is a hindsight and you didn't assume Bitcoinica to be a scammer's product when it was launched.

tl;dr: The road to hell is paved with good intentions.

I'm quite sure you launched Bitcoinica with the intention for it to provide value to the community. As initially suggested by Patrick/Intersango and others, your claims about trade volume were very suspicious. It's likely you simply exaggerated them, not unusual when being proud of what you've created.

Whether the Linode theft (where other accounts as well were swiped) just provided an excuse for some profit on the side or not I don't know, but I'm quite sure the only real money to have come out of running Bitcoinica were from user deposits. I have no personal opinion of whether it operated as a pure bucket shop or not, but others have documented the lack of visible MtGox movement even when Bitcoinica should've been hedging.

When, based on how you presented the success of Bitcoinica in public, you were approached with investment offers I believe you were simply unable to admit that it wasn't as successful as you claimed. I believe you went along way too far with whatever happened, and that the Rackspace "hack" was the simplest way out when Tihan started questioning the books. Additionally, it provided yet more profit which you might've needed to be able to keep up appearances with your friends and family.

After the very visible and complete failure by the Intersango people to handle the resulting mess I believe you made yet another profitable "hack" on the service. It wasn't as well planned nor executed as the previous, maybe it was simply opportunistic after having realized the release of the source code provided the excuse needed.

I've posted links to http://en.wikipedia.org/wiki/Pseudologia_fantastica and http://en.wikipedia.org/wiki/Cognitive_dissonance since I do believe they apply. I think you're currently unable to admit to yourself and people close to you where things went wrong, and you're still hoping to be able to exit this unscathed.

(I consider the above to be the simplest explanation possible that still fits all the known facts. I'm wary about the exact involvement by Amir, Patrick and Donald though - and since Tihan and Zhou supposedly have met in person it would be interesting to know exactly whom else have actually met either of them.*)

But then, the only reason I really care is that if people's only takeaway from having joined the Bitcoin community is that they get constantly scammed this will never fly. I thus believe Bitcoin fraud needs to be handled by the proper legal authorities. We're way past Mybitcoin's "as long as I give 49% back you guys won't hurt me, right?" - which btw looks suspiciously close to what you're currently trying to do as well.

*) Edit: Tihan's identity is verified by an upstanding member of the community, and thus Zhou's should be as well.
74  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 30, 2012, 02:17:14 AM

Justice is getting the money back, and extra at this point.


I respectfully disagree.  Not exactly sending the right message is it.    "Hey hackers, these jokers at the bitcointalk forum are pushovers!  Hack the shit out them (several times), but as long as you concoct some barely feasible story and hand back a portion of what you took, you get to keep the rest with no consequences!"

Yeah, awesome.

Exactly. Mybitcoin should've been the first and the last. I had no money in Bitcoinica (and I consider everyone who had to be naïve) but I strongly want Bitcoin to succeed. Thus, my motivation is in making sure scammers stop their bullying of my playground.

75  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 11:31:45 PM
Anyone using that as a postulate in a theorem clearly doesn't actually 'get' Occam's Razor.

Or uses the popular version. I could've stated that in science the hypothesis requiring the least amount of free variables is likely to be correct, I'm just not sure that would've made the point clearer.

76  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 11:28:34 PM
So, I have done a deal "for a friend" on AurumXchange using my own account.

And I have also done a deal "for a friend" on QQ using a friend's account?

Both happened before I had any clue of the investigation.

I did the deals, but all in much larger amounts with my own account.

So, this deal you did with a "friend's" account just happens to be the same account as "the hacker" created? I'm sorry, but that explanation can't even begin to satisfy your own quest for consonance.

http://en.wikipedia.org/wiki/Cognitive_dissonance#The_Belief_Disconfirmation_Paradigm

77  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 10:31:07 PM
It doesn't fit in my thinking at all. So the screenshot is either fake, or taken by someone who has actually dealt with Chen Jianhai.

Occam's Razor says that the simplest explanation is neither that someone, for no reason, created a screenshot where your QQ-account would start selling LR that when the transactions were made turned out to come from the LR account you yourself stated that the hacker created. Nor is the simplest explanation that you now all of a sudden would start to claim that "Chen" has hacked your QQ account to do deals.

The simplest explanation is that you didn't expect that someone who bought LR from you, the transactions you've so far claimed are completely unrelated and "for a friend", would match up the LR account to information released much later by aurumxchange.

* The Liberty Reserve account used by the hacker is U9236056.

The $40,000 I exchanged at AurumXchange was indeed from a friend. Later I can also post proof that I exchanged another $30,000 at other exchanges during the same period. The total amount far exceeds the stolen amount claimed in the OP. My own Liberty Reserve account number is U7097615.

The hacker registered a Liberty Reserve account U9236056 at Jul 12, 2012 9:42 PM.

vs

I am the owner of www.cnbtcnews.com. I introduce bitcoin to chinese people.
The evidence is from one person of my qq group.
zhoutong sell LR, and he buy LR from zhoutong.

How does this person know for sure Zhou Thong was behind U9236056?

He buy LR from zhoutong ,zhoutong show the LR account and the total fund is $23439.57.

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

Select quotes:

Quote
The stories told are not entirely improbable and often have some element of truth. They are not a manifestation of delusion or some broader type of psychosis: upon confrontation, the teller can admit them to be untrue, even if unwillingly.

Quote
The stories told tend toward presenting the liar favorably. For example, the person might be presented as being fantastically brave, knowing or being related to many famous people.

Quote
There are many consequences of being a pathological liar. Due to lack of trust, most pathological liars' relationships and friendships fail. If the disease continues to progress, lying could become so severe as to cause legal problems, including but not limited to fraud.
78  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 07:36:17 PM
Wouldn't it be rational to claim that Zhou Tong is one person, and Chen Jinghai is another?

There's no reason whatsoever to involve a second person called "Chen" in anything. The simplest explanation that fits all the known facts (including the LR-selling you, just like Zhou, seem to skip over) requires only ... Zhou.

79  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 04:40:23 PM
There is no reason to suspect otherwise.

But there is: https://bitcointalk.org/index.php?topic=95738.msg1055632#msg1055632

Why was Zhou, through his own QQ-account, selling LR from the LR-account Zhou said "the hacker" created?

Occam's razor.
80  Bitcoin / Bitcoin Discussion / Re: Statement about the suspect of recent Bitcoinica hack on: July 29, 2012, 04:27:17 PM
any progress in the investigation of first hack and

I agree, that's interesting. We should be getting some information from the investigations following the Linode and Rackspace-"hacks" now, shouldn't we?

(Unless, of course, if the service in question isn't what it claims to be. Then it would be much more important to do everything possible to keep the lid on)

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