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1021  Economy / Scam Accusations / Re: Scammer - HashKing on: September 11, 2012, 12:04:16 AM
Initial PM sent.
1022  Economy / Scam Accusations / Re: Scammer - HashKing on: September 10, 2012, 11:49:01 PM
Who/what backed the "insurance"? Did he ever say?
1023  Economy / Scam Accusations / Re: Andrew Bitcoiner is distributing defamation against competitors on: September 10, 2012, 11:18:26 PM
Virus was embedded into one of the advertisers page (, report from Google), which was immediately removed after we have known about it.
Thus his statement was accurate. As the administrator of CoinURL, it is your responsibility to ensure that malicious content does not get onto your site.
1024  Economy / Service Discussion / Re: pirate payments list -- accounts paid: 23/459 on: September 06, 2012, 11:44:43 PM
It would also rhyme with pirate claiming to be afraid of BTC price increase, since he would be paid in dollar and owed BTC.
And it would even match his grandiose claims of being part of a much much bigger "thing".

as for the timing, Maged quoted pirate on august 17, 6pm:

Not sure how long that was after pirate announced closing shop, but probably only a few hours.

All in all, sounds plausible.
I posted that 10 minutes after the announcement. The only reason it even took that long was because I needed to execute the contingency plan that I had written up after considering the possibilities a few weeks prior: sell everything... immediately. Turns out that I actually had plenty of time, so I could have just posted the announcement 3 minutes after it was public, but I had no way of knowing that  Undecided

[2012-08-17 13:05:37] <Maged> I'm in FULL PANIC mode, now. Contingency plans are now in progress.
1025  Bitcoin / Important Announcements / Re: Bitfloor hacked, most bitcoins stolen on: September 06, 2012, 11:05:57 PM
The past few days have seen much speculation as to what is going on. I have waited to post updates until I had a clearer understanding of how to move forward.

After careful consideration, ACH withdrawals of USD from Bitfloor will soon be re-enabled, with details to be posted on You are welcome to continue keeping your USD funds at Bitfloor if you choose to do so. I feel that this is the first step in rebuilding the reputation of Bitfloor and regaining the trust of the community. As I have previously stated, all USD funds are available as no theft of USD occurred.

I have filed reports with the FBI and the IC3 regarding the theft. It was a cybercrime and as such am following up with the proper agencies to attempt to track down the perpetrator.

Finally, I am pursuing all avenues for keeping Bitfloor operational and serving the needs of the growing bitcoin community. I appreciate the support I have received from many over the past few days and will keep everyone updated as new information is available.

1026  Economy / Scam Accusations / Re: I didn't want to do this. BTC Guy has not shipped or responded to me in a week. on: September 06, 2012, 09:45:02 PM
Looks like someone else might have paid for these same goods...

Also, in case it's disputed, both of the addresses mentioned in the OP belong to the same wallet, as seen here:
1027  Bitcoin / Important Announcements / Re: Bitfloor hacked, most bitcoins stolen on: September 04, 2012, 11:00:59 PM
Please quantify the amount of BTC lost as well as the total BTC owed.
What % of BTC were lost?

From the tx it looks like 30K BTC in outputs (although one involved two large outputs so it is unclear what is going on there).

This was almost all of the BTC.

Was there a loss of any USD funds?

No. All USD bank accounts are secure. And all records for the current status of the exchange (accounts, trades, etc) are all also secure.
unencrypted backup HuhHuh

Yes. It was made when I manually did an upgrade and was put in the unencrypted area on disk. I realize the details of the failure and attack are interesting but I am currently focused on user accounts and exchange status going forward.
So ~30K of ~30K in BTC has been lost?

The amount totals to ~24K BTC.
How long, given average operation, would it take to regain the 25K in fees?

We have seen steady growth over the last few months but our 30 day volume is ~64K BTC (717K USD) and given that we get 0.3% from each trade this means we make roughly 2.1k per month in USD (210 BTC at current rate). So quite a long time if trading did not ramp up. Regardless of the recovery time I felt it important to make this announcement as it impacts many users and the community.
Since neither the USD balances nor account records have been compromised please process scheduled ACH withdraws.

We have a pending ACH withdraw which should be processed today.
Should we send ACH withdraw request for the balance by email since the site will be down for the immediate future?

ACH withdrawals placed before the compromise have been processed. New withdrawals are currently on hold while I work through the future of the exchange.
Could you secure some investor funds to pay back losses to customers now, and payback the investor after your business picks back up?

This would be a possibility if investors interested in helping continue operations show interest. It is certainly something I am thinking about.
I never store keys on a webserver for a project involving customer funds.  If all monies belong to the site operator that's their business, but if there are customer accounts I refuse to write code for someone who isn't willing to put the keys on a separate, heavily locked down server (preferably with no public ip).

I don't wish to go into too many details on this thread about it, but this box was not public facing.
Still irrelevant.  Maybe try understanding the question.  It still won't help though since the question isn't directed to you and you don't know the answer.  A system, holding an unencrypted copy of the keys was hacked.  He claims this system was not public facing, yet he also claims that the attacker connected from a specific IP.  If the system was not public facing, how did the attacker connect to it?

The system was connected to from one of our other boxes which was accessed through a virtual console. The wallet box had all public ports blocked but was able to be connected to from a few of the other boxes.
I have put the website back online for users who have USD to request a withdrawal via ACH. If you choose to leave your USD funds in the account they will be available for trading once it resumes. I hope to resume trading later in the week.

If you had outstanding orders they have all been cancelled.

Once trading resumes, I hope to be able to start repaying BTC losses using the proceeds from fees. More information about this will be provided later.
Please note that I have taken the website offline. I am consulting legal council about the current situation and will post once I have more details. I want to make sure the matter is handled appropriately given the financial situation the exchange is currently in.

The website was causing too much confusion in the current form and once I have more details I will post a very clear message for all users.
1028  Bitcoin / Important Announcements / Bitfloor hacked, most bitcoins stolen on: September 04, 2012, 10:56:48 PM
As much as I regret the post I am about to write I feel that it is only fair and holding to the spirit of BitFloor that I disclose everything that is going on and make the information available. Please read the entirety of the post. As always, if you have any questions please post them here versus contacting support so that other users may benefit from the answer (unless it is private).

Last night, a few of our servers were compromised. As a result, the attacker gained accesses to an unencrypted backup of the wallet keys (the actual keys live in an encrypted area). Using these keys they were able to transfer the coins. This attack took the vast majority of the coins BitFloor was holding on hand. As a result, I have paused all exchange operations. Even tho only a small majority of the coins are ever in use at any time, I felt it inappropriate to continue operating not having the capability to cover all account balances for BTC at the time.

Due to the serious nature of what has happened I am currently evaluating options for BitFloor. One of the last things I want to happen is for BitFloor to shutdown and cause more panic in the bitcoin community. The platform itself is very valuable and provides an important and friendly service to many users.
BitFloor is very much focused on the end user and creating a reliable and trusted platform for everyone. Through exchange user support, I can continue to operate BitFloor. I believe that posting the exchange source and being even more transparent about operations would be a step in this direction if we were to continue operating. BitFloor is currently the #4 USD exchange and #1 in the US.

As a last resort, I will be forced to fully shut BitFloor down and initiate account repayment using current available funds. I still have all of the logs for accounts, trades, transfers. I know exactly how much each user currently has in their account for both USD and BTC. No records were lost in this attack.

I realize that saying that I appreciate everyone's understanding is a moot point, however I do wish to re-iterate that my goal is to find the best and most reasonable way forward for BitFloor customers and the exchange and not create more panic that the community has already seen time and time again.

I would like to keep this thread focused on evaluating ideas of BitFloor operation and will create a separate thread for discussion (see below) about the actual transactions and tracing the coin theft. I will not speak at detail about the actual breach at this time as my current focus is on the future and not the past.

In the intrest of information for tracking stolen coins:

This thread is the sister thread to the "bitfloor needs your help" thread here

It is meant for the tracking and discussion of the stolen coins from

The attack came from the following IP:

And the coins were withdrawn with the following transactions:

Obviously it is high hopes to have the coins returned, but I do feel that the community can always benefit from more knowledge about high profile thefts and the aftermath.
1029  Economy / Speculation / Re: 1DkyBEKt5S2GDtv7aQw6rQepAvnsRyHoYM on: September 04, 2012, 10:10:29 PM
Honestly, I'm finding it amusing just how bad most of you are at block chain analysis. "Oh Emm Gee gais!  Someone sent a message to the address! IT MUST BE FROM PIRATE!"

Ignore anything that is sent to this address at this point. It literally means nothing. If we start seeing messages sent from this address, then we can talk.

Next, I also find it amusing that everyone is assuming that this address belongs to Pirate. In fact, some quick analysis on my part seems to show otherwise. It's most likely Silk Road.
1030  Other / Meta / Re: Long-term Offers Ponzi warning on: September 03, 2012, 09:56:37 PM
Securities, for one.
1031  Other / Beginners & Help / Re: **SILKROAD** down?? please, can anyone confirm? on: September 03, 2012, 08:53:03 PM
Mods, please delete this post if this isn't allowed. Thanks Smiley
Looks like the filter answered that question for you  Tongue
1032  Other / Meta / Re: "Long-term offers" - gonna have to tackle this 1 eventually on: September 03, 2012, 08:00:50 PM
I think it's good to have credit ratings stickied. As far as I know, Patrick is currently the only person publishing credit ratings. If more people publish them, I'll unsticky Patrick's topic and create a new sticky which links to all of the credit rating topics.
I approve of this. The more credit ratings, the better.
And I have also published my Credit ratings & reviews too:
Sorry, but that's an absolute joke. I would guess that it's mostly right, but you've clearly not put any real effort into gathering information. Additionally, you are ONLY focusing on what you believe are ponzis. Where are the ratings for the legitimate investments? If you want to be included in a sticky, you will need to actually work for it.
1033  Economy / Scam Accusations / Re: Payment Not Delivered by "R-" for Work Rendered on: September 03, 2012, 07:13:50 PM
PM Maged and see if he will take some action.

ActualyLy, PM theymos. I already sent mage a PM about this a while back with no response.
Sorry, I didn't realize that you were looking for a response since the message was more of a FYI.

Anyway, I PM'd R- again to see what the delay is.
1034  Other / Beginners & Help / Re: Micon blew up Pirate on: August 31, 2012, 10:35:27 PM
It is my understanding that Byron used his celebrity to get this horrible crime into the mainstream media. He also did a lot of blockchain analysis, but he, unlike some glory hounds, doesn't like to discuss that openly.
So, he was just pretending not to know how much BitcoinMax had? Because our group had known that for weeks.

Again, he knew nothing and did nothing.
1035  Economy / Lending / Re: Bryan Micon's List of BTC Ponzi Schemes that should not be listed as "Lending" on: August 30, 2012, 12:04:24 AM
Based on the information we have (which is not complete), he most likely got out with around 200k BTC. However, we never analyzed the last week to get those withdrawal numbers and it's also very likely that most of the BTC was sold at around $5. Worst case, he still got away with half a million USD, although it is more likely closer to $1 million USD.

I have a problem with taking anyone's word on this information. If it doesn't matter now that Pirate has shut down, why not release it? The accusing party demanded that Pirate release information, yet won't share its own discovery? What's so proprietary about this admittedly inconsequential information? The royal 'we' sounds like an excuse.

I believe there's a word for this: hypocrisy.

Another problem I have - if Pirate was running a scam and this information is relevant, then the longer it takes for it to be opened to further scrutiny, the longer Pirate has to obscure his trail. Intervening during a crime in progress depends heavily on information. As far as I'm concerned right now, the information is either fabricated, or the parties involved with it are obstructing community efforts to discover what's going on.

Or maybe Maged is Pirate, spreading more misinformation.
I know. But it is not my place to share this information. I am only authorized to give my conclusions on the data.
1036  Bitcoin / Important Announcements / Re: [ANN] Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation on: August 29, 2012, 11:58:41 PM
I too hoped things would be further along by now. The lawyers are looking at skipping receivership and proceeding directly to liquidation. This is intended to save time but nothing in the legal world is fast by bitcoin standards. With luck, the Court will approve a liquidator in September.
1037  Other / Beginners & Help / Re: Micon blew up Pirate on: August 29, 2012, 10:59:25 PM
I think we should all congratulate Byron Micon on successfully spotting and outing the Pirate ponzi scheme.

Congratulatiosns, byron.

He was far from the first. Congratulate him for jumping on a high visibility bandwagon instead.

If you want to congratulate someone, look at Maged and Vandiroy for example, who took to the blockchain and worked out the size and scope of the scam.
Totally agreed. Micon did nothing and knew nothing. The only thing he did, which I still don't understand how, was make an extremely popular anti-pirate thread.

I'd also like to thank all the people behind the scenes who either gave us information or helped us compile information. They know who they are. Without them, we could not have gathered as much information as we did. I can only hope that informed investors in Pirate took heed and that we at least saved some people.
1038  Other / Meta / Re: Theymos please make a mobile friendly version on: August 29, 2012, 10:24:30 PM
Shouldnt this be in service or development section rather than the meta?
Nope, it belongs here.
1039  Economy / Lending / Re: Bryan Micon's List of BTC Ponzi Schemes that should not be listed as "Lending" on: August 28, 2012, 03:26:56 PM
Maged: I know you're not at liberty to discuss the details, but what is the analyzed estimate of the number of coins Pirate got away with? (i.e., the remaining principal minus withdrawn interest)
Based on the information we have (which is not complete), he most likely got out with around 200k BTC. However, we never analyzed the last week to get those withdrawal numbers and it's also very likely that most of the BTC was sold at around $5. Worst case, he still got away with half a million USD, although it is more likely closer to $1 million USD.
1040  Economy / Lending / Re: Bryan Micon's List of BTC Ponzi Schemes that should not be listed as "Lending" on: August 28, 2012, 06:13:27 AM
It was decided that it was pointless to post the information after Pirate closed down. The information, had I been allowed to share it, would have shown that with a little starting capital to pay initial investors (less than a few thousand BTC), a ponzi scheme with the inflow and outflow that we observed from Pirate would have not just been possible, but also extremely profitable because more deposits were consistently coming in than what was going out. In fact, the more we called it a ponzi, the more deposits there were.

Like I said, it was never proof of anything. It only showed that this would have been profitable as a ponzi scheme, directly disproving the belief that if this was a ponzi it would have gone bankrupt a long time ago.
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