Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[yrtrnc]

Meanwhile on the frontpage of reddit




http://www.reddit.com/r/Bitcoin/comments/1xulba/on_rbitcoin_right_now/

[600watt]

Meanwhile on the frontpage of reddit




http://www.reddit.com/r/Bitcoin/comments/1xulba/on_rbitcoin_right_now/

this building is in much better shape than gox 

[TERA]

[Dragonkiller]

Haha, Mark Karpeles and his dessert coffee again:

http://www.youtube.com/watch?v=ob9Ak1t09Ao&t=153

Lol I don't know why everyone makes a big deal about the drink like it's the most important thing going on, it's just a regular drink from Starbucks as far as I can tell.

[yrtrnc]

Meanwhile on the frontpage of reddit




http://www.reddit.com/r/Bitcoin/comments/1xulba/on_rbitcoin_right_now/

this building is in much better shape than gox 

Hahahahahaa

[Hypnoise]

in the box
with a gox
let me out
silly fox

[mmitech]

Haha, Mark Karpeles and his dessert coffee again:

http://www.youtube.com/watch?v=ob9Ak1t09Ao&t=153

Lol I don't know why everyone makes a big deal about the drink like it's the most important thing going on, it's just a regular drink from Starbucks as far as I can tell.

there is no backdoor/coding problem at mtgox, the problem is simple, Mark keeps eating your bitcoins, it is clearly what is happening you can check your self on that video hahahahahaha

[surfer43]

haha so true 

[Dragonkiller]

Haha, Mark Karpeles and his dessert coffee again:

http://www.youtube.com/watch?v=ob9Ak1t09Ao&t=153

Lol I don't know why everyone makes a big deal about the drink like it's the most important thing going on, it's just a regular drink from Starbucks as far as I can tell.

there is no backdoor/coding problem at mtgox, the problem is simple, Mark keeps eating your bitcoins, it is clearly what is happening you can check your self on that video hahahahahaha

Lol I think they have lost a significant amount of coins (enough that they can't even do fractional reserve goxing) or Mark is the most incompetent man on Earth. Not sure which is more likely, but starting to think it's the former because surely by now he would have made at least some sort of attempt to prove solvency and stop the carnage.

[maximum]

fat pigs should get slaughtered lol

[Dragonkiller]

Lol I don't know why everyone makes a big deal about the drink like it's the most important thing going on, it's just a regular drink from Starbucks as far as I can tell.

It was just funny how his second encounter with a protester matched the description of the previous Australian guy.

 

[Denton]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

[GreekGeek]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

So who gets the fiat/cash , I guess Gox does... 

[hdbuck]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

So who gets the fiat/cash , I guess Gox does... 

meanwhile, Gox offices in japan...

[fonzie]

 

[porcupine87]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

yeah, unfortunately you need a seller if you want to buy^^

[fonzie]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

yeah, unfortunately you need a seller if you want to buy^^

Indeed, ask side on MT.Gox is complete empty.

[stompix]

Ideal scenario: Gox fixes withdrawals, all fiat on gox gets turned to btc and everyone leaves gox.

yeah, unfortunately you need a seller if you want to buy^^

Yeah  probably the moment gox fixes btw withdrawals , all the btc wil be gone and headed to bitstamp.

[JorgeStolfi]

Let's se if understood correctly.  The "malelability" of transaction requests can cause two problems:

  * First, old or custom wallet software may broadcast out "non-canonical" transaction requests (like writing "$020,0" on
    check instead of "$20,00").

    Such requests were originally accepted by the bitcoin network, but  a few months ago the protocol was tightened
    and they started being rejected.

    An exchange that issued such a request in order to execute bitcoin withdrawals by clients had to either re-issue the transaction
    request, or cancel the withdrawal and credit back those bitcoins to the client's account.  If the exchange did either of these
    two things, the result would be only annoyance to clients as their withdrawals were delayed or failed.
   
    If the exchange did not do either of those things, the bitcoins would be subtracted from the client's account but would remain
    in the exchange's own wallet.  If the exchange also failed do proper accounting (which it probably did, or else it would have detected the
    problem), it may have believed that the apparent BTC surplus  (bitcoins in its own wallet minus sum of all bitcoins in the clients accounts)
    was its profit from fees; and therefore converted that surplus into dollars to pay for expenses and dividends.  In extreme situations,
    the exchange may become insolvent (unable to produce enough bitcoins and dollars to honor all its client's accounts.)

  * Second, some hackers exploited the malleability to steal coins from any exchange that issued non-canonical requests.
   
    The hacker would open an account at the exchange, put some bitcoins there, and request a withdrawal. He would then watch
    for the corresponding transaction request as it was broadcast by the exchange, and would broadcast a mutated copy (like
    changing "$020" to "$20").  The network would execute the "canonical" version and reject the original for being non-canonical (and
    also an attempted double spend). 

    The exchange would then think that the transaction had failed, and therefore would either re-try it, or cancel the withdrawal and
    credit back the coins to the hacker's account.  In the first case the hacker would get the withdrawal executed two or more times
    but debited only once; in the second case he would get the withdrawal executed without his account being debited.  Repeat
    to taste.

    Again, this hack could be spotted imediately if the exchange kept proper accounting, as it would notice that the coins
    were taken out from its own wallet in spite of the transaction being apparently rejected.

Is this understanding correct?

If so, does anyone know whch exchanges had which of these problems, and how many bitcoins  they overspent or had stolen?

It seems that for MtGOX the amount involved is at least 50,000 BTC or more, and one of those two problems had been occurring for several months.  How could they fail to notice and diagnose such a big problem?

[yrtrnc]

Its going sideways, again