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Author Topic: Risk of a megaupload type attack on MTGox?  (Read 1353 times)
alxs
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April 08, 2013, 02:26:38 AM
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The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

If btc gets to 1k and possibly even $500 this risk could become extreme.

Megaupload was taken out without any due process at all and its servers seized.  Court documents later revealed that all action taken against megaupload was illegal, this is irrelevant.  To protect against a future attack, dotcom created multiple mirrored server farms. 

Seems to me this would be the easiest way to crush btc and set it back potentially years.







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April 08, 2013, 02:30:16 AM
 #2

Don't leave your bitcoins on the exchange. Forget about trying to squeeze out a few extra percentage over the market increase by daytrading; it's not worth the risk. Send fiat in, buy bitcoins, withdraw them to a wallet under your own control.
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April 08, 2013, 02:33:32 AM
 #3

Im not concerned about me personally or my account at mtgox.  Im concerned about the btc economy itself.

The megaupload case proved due process is irrelevant.  If btc gets to $500 by the end of this year, everyone and their dog will want a btc.  How can that be crushed? Do a megaupload on mtgox.
 

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April 08, 2013, 02:37:42 AM
 #4

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

If btc gets to 1k and possibly even $500 this risk could become extreme.

Megaupload was taken out without any due process at all and its servers seized.  Court documents later revealed that all action taken against megaupload was illegal, this is irrelevant.  To protect against a future attack, dotcom created multiple mirrored server farms. 

Seems to me this would be the easiest way to crush btc and set it back potentially years.

This would be bad for the people that have cash and bitcoins on exchange, but this would not set us back years at all, we would just move to another exchange like bitstamp which is even better than mt gox in my opinion. This is why mt gox can't be so big to not fail.

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April 08, 2013, 02:39:08 AM
 #5

Attack or not Mtgox has not been able to scale with the exponential demand.

Bitcoins biggest problem is the lack of a decentralized exchange.

These central points of failure gotta go.

Some techies please, for the good of humanity, lets get a viable, liquid, and user-friendly decentralized exchange platform going.
alxs
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April 08, 2013, 02:47:46 AM
 #6

Look at what happened to Kim Dotcom and megaupload.  

This is what I mean by a "megaupload attack" on MTGox:

First step
1) Domain seized, servers seized, principles arrested, charged with multiple felonies, facing extradition.  

2nd Step
2) With servers and data in hand, users of mtgox charged w money laundering and multiple other charges all
without merit or due process but with great publicity.

Gox is the weak link, and i think this type of attack becomes more and more likely as btc goes up.
If Gox able to withstand hackers and ddos, a no due process attack becomes more and more likely,
just like megaupload.
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April 08, 2013, 02:55:11 AM
 #7

Look at what happened to Kim Dotcom and megaupload.  

This is what I mean by a "megaupload attack" on MTGox:

First step
1) Domain seized, servers seized, principles arrested, charged with multiple felonies, facing extradition.  

2nd Step
2) With servers and data in hand, users of mtgox charged w money laundering and multiple other charges all
without merit or due process but with great publicity.

Gox is the weak link, and i think this type of attack becomes more and more likely as btc goes up.
If Gox able to withstand hackers and ddos, a no due process attack becomes more and more likely,
just like megaupload.


+1

It's only a matter of time.  Mtgox was not presenting much forsight moving to the USSA.

But... when something like this does happen, I'll be buying up every coin I can on any exchange I can.
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April 08, 2013, 02:57:54 AM
 #8

Can you imagine the type of backlash the government would receive if they shut down MtGox and seized all the servers? We're talking millions upon millions of dollar gone. There would no doubt be some riots or attacks.

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April 08, 2013, 03:00:44 AM
 #9

Can you imagine the type of backlash the government would receive if they shut down MtGox and seized all the servers? We're talking millions upon millions of dollar gone. There would no doubt be some riots or attacks.

Look at the backlash in Cyprus.  That really didn't stop them did it.

So long as they have the power to do it, they will.  It would be just plain naive to believe otherwise.
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April 08, 2013, 03:20:12 AM
 #10

""If it gets very popular, I can see the government clamping down," said Alistair Cotton, a senior analyst with Currencies Direct. "I think it would lead to a massive drop off in the number of users."

http://www.businessinsider.com/experts-remain-skittish-on-bitcoin-as-prices-continues-to-rise-2013-4

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April 08, 2013, 04:30:54 AM
 #11

Can you imagine the type of backlash the government would receive if they shut down MtGox and seized all the servers? We're talking millions upon millions of dollar gone. There would no doubt be some riots or attacks.

Doubtful.  Websites get shut down with some frequency and the techie crowd doesn't do a thing.
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April 08, 2013, 07:12:53 AM
 #12

I agree on the decentralization. It's exactly what Bitcoin emphasizes!

But remember: We're not dependent upon MTGox! BTC can be exchanged by whatever means. Cash for instance.
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April 08, 2013, 11:50:22 AM
 #13

Can you imagine the type of backlash the government would receive if they shut down MtGox and seized all the servers? We're talking millions upon millions of dollar gone. There would no doubt be some riots or attacks.

Doubtful.  Websites get shut down with some frequency and the techie crowd doesn't do a thing.

Riots?! What are you, kidding?

Look up Cyprus.

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April 08, 2013, 11:59:32 AM
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Don't store all of your Bitcoins somewhere else. Take responsibility and store them yourself.

Herodes
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April 08, 2013, 12:23:49 PM
 #15

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

Wasn't the megaupload attack due to it being enormous amounts of copyrighted material being shared on their serves ? Hollywood movies, big record labels mp3's and so on ? So the entertainment industry lobbied the government into taking action.

What similarities would there be for an attack on MtGox ? All money transferred to MtGox through the banking system can be tracked, and MtGox is keeping KYC/AML notes, so I don't see why a megaupload type of attack should take place ?

Attacking bitcoin at this point would give a lot of negative press for any government and will only prove the point that the current system is bad.
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April 08, 2013, 01:24:32 PM
 #16

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

Wasn't the megaupload attack due to it being enormous amounts of copyrighted material being shared on their serves ? Hollywood movies, big record labels mp3's and so on ? So the entertainment industry lobbied the government into taking action.

What similarities would there be for an attack on MtGox ? All money transferred to MtGox through the banking system can be tracked, and MtGox is keeping KYC/AML notes, so I don't see why a megaupload type of attack should take place ?

Attacking bitcoin at this point would give a lot of negative press for any government and will only prove the point that the current system is bad.

I think you fundamentally misunderstand how "the press" works. If you are talking about English MSM, the deciding factor is that currently the US has a blue (ie, socialist) prime minister (they call the PM "president" and the actual President "Vice President" for the same sort of nutty reasons they use blue for socialism). This means absolutely 0 chances any arbitrarily chosen move will be depicted as anything other than saving the little guy, women, the economy, America and so forth. The opposition will be racist, rapist and whatnot.

If they had a red president things would work like you imagine, which makes me think you've stopped reading MSM during Bush or something.

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Herodes
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April 08, 2013, 01:40:00 PM
 #17

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

Wasn't the megaupload attack due to it being enormous amounts of copyrighted material being shared on their serves ? Hollywood movies, big record labels mp3's and so on ? So the entertainment industry lobbied the government into taking action.

What similarities would there be for an attack on MtGox ? All money transferred to MtGox through the banking system can be tracked, and MtGox is keeping KYC/AML notes, so I don't see why a megaupload type of attack should take place ?

Attacking bitcoin at this point would give a lot of negative press for any government and will only prove the point that the current system is bad.

I think you fundamentally misunderstand how "the press" works. If you are talking about English MSM, the deciding factor is that currently the US has a blue (ie, socialist) prime minister (they call the PM "president" and the actual President "Vice President" for the same sort of nutty reasons they use blue for socialism). This means absolutely 0 chances any arbitrarily chosen move will be depicted as anything other than saving the little guy, women, the economy, America and so forth. The opposition will be racist, rapist and whatnot.

If they had a red president things would work like you imagine, which makes me think you've stopped reading MSM during Bush or something.

Hehe, I don't read main stream news much. If find it overall of little use and value. Stupid people may be fooled by unjust actions and duped by the media, the intelligent people will not.
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April 08, 2013, 11:34:54 PM
 #18

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

If btc gets to 1k and possibly even $500 this risk could become extreme.

Megaupload was taken out without any due process at all and its servers seized.  Court documents later revealed that all action taken against megaupload was illegal, this is irrelevant.  To protect against a future attack, dotcom created multiple mirrored server farms.  

Seems to me this would be the easiest way to crush btc and set it back potentially years.


Megaupload was taken out because they used US email servers, which the feds gained access to, and they found unencrypted internal staff emails where they were asking each other how to find pirate copies of movies. 'Hey where's the latest batman uploaded?' and other really dumb shit they were talking about which feds claimed was good enough evidence to seize the servers.

This only happened because Dotcom was stupid enough to use major US label artists to promote his site which was crammed full o' unlicensed material. Deeerrrpp. Right after those ads aired a massive lawyer lobby picked up the phone to their corrupt senate and congressional lackies to sick the feds on him.

I don't see this happening to Coinlab/Gox but I do forsee feds ransacking the Coinlab office every chance they get whenever some sort of bitcoin crime hits the headlines, like a ransom paid in BTC

tl;dr always encrypt staff emails
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April 09, 2013, 02:33:19 AM
 #19

The greatest risk to btc is mtgox as we all know and restated by max keiser just recently.  While everyone is cheering recent btc rise, I think risk of a megaupload type attack goes up exponentially with the rise in btc.

Wasn't the megaupload attack due to it being enormous amounts of copyrighted material being shared on their serves ? Hollywood movies, big record labels mp3's and so on ? So the entertainment industry lobbied the government into taking action.

What similarities would there be for an attack on MtGox ? All money transferred to MtGox through the banking system can be tracked, and MtGox is keeping KYC/AML notes, so I don't see why a megaupload type of attack should take place ?

Attacking bitcoin at this point would give a lot of negative press for any government and will only prove the point that the current system is bad.

I think you fundamentally misunderstand how "the press" works. If you are talking about English MSM, the deciding factor is that currently the US has a blue (ie, socialist) prime minister (they call the PM "president" and the actual President "Vice President" for the same sort of nutty reasons they use blue for socialism). This means absolutely 0 chances any arbitrarily chosen move will be depicted as anything other than saving the little guy, women, the economy, America and so forth. The opposition will be racist, rapist and whatnot.

If they had a red president things would work like you imagine, which makes me think you've stopped reading MSM during Bush or something.

Hehe, I don't read main stream news much. If find it overall of little use and value. Stupid people may be fooled by unjust actions and duped by the media, the intelligent people will not.

During his 1956 presidential campaign, a woman called out to Mr. Stevenson "Senator, you have the vote of every thinking person!" Stevenson called back "That's not enough, madam, we need a majority!"
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