1000btc frozen, lost or stolen by MyBitcoin?
By Todd Bethell
On 12 July 2011, 1000btc MtGox to MyBitcoin.
On 28 July 2011, 1000btc MyBitcoin to MtGox.
28 June 2011, payment notification was received
. 8hrs later (the site was still up) visual verification was done in account history of the transaction and correct address.
48 hrs later still no coins.
This is where I need a block explorer expert.
21 minutes after MyBitcoin received the btc block explorer shows the coins from that wallet being split and transmitted hundreds of times all the way down to 1 Satoshi.
1. Is this normal or a sign of fraud making it impossible to track?
2. Are all wallets effectively used as ‘pool wallets’ for payouts?
3. While I am not accusing MyBitcoin of theft, itn’t plosible that
Block 135867 (2011-07-12 07:06:54) 1000 Received: Address • 1DeAkzL1MBriA37pHS46Nu1xcCzJ5sPupH
Block 135870 (2011-07-12 07:27:05) 1000 Sent: Address • 17e8zfFzVkKtx4ofdeoYHhdvu1cTKCpv2r
-------------------------------------------------------------------------MyBitcoin Payment Notification
MyBitcoin Robot [email@example.com
-----BEGIN PGP SIGNED MESSAGE-----
This is a payment notification from MyBitcoin.
You have sent Bitcoins!
Transaction Number: 245107
Transaction Date/Time: 2011-07-28 22:30:02
Payment Note: MtGox businessaccount1
-----BEGIN PGP SIGNATURE-----
Version: GnuPG/MBC v1.0
-----END PGP SIGNATURE-----
Approximately 8hrs later the coins had not been credited to my MtGox account. MyBitcoin was still up. My account history showed the coins had been sent and the sent to address was verified correct.
Security Note: The instant before clicking the send button (perhaps when my mouse hovered over it) I notice a screen blink or something changed, but it was too late to avoid clicking the button.
Q1. Has my computer been compromised such that the send address was swapped at the last instant?
Q2. If this is so, how could the correct address be recorded in the MyBitcoin data base?
Q3. Is it coincidence that the MyBitcoin service has gone down for 48hrs with nary a peep from its owner? A person who was very proactive and vocal during the MtGox incident.
Q4. I’m hard pressed to think of a technical reason how or why a transaction confirmation bot would send confirmation of btc transmission before such a transmission had actually occurred. Let alone consciously programmed in this way. It would seem that the bot was part of the book keeping data base and not confirming actual transmission from a ‘hot’ wallet.
Q5. It seems that the way MyBitcoins was using the wallets of its members (pooling them as a matter of operational efficiency or draining them as a scam??) this makes it impossible to track coins or analyze if they are insolvent?
Q6. Was my 1000btc withdrawal lower to water level in his 'hot wallet' enough to show Tom was swimming without a suit? In other words, for whatever reason, he was operating insolvent?
I would not normally keep so many coins in an on-line wallet but this was in preparation for a business transaction that was delayed.
I am preparing a blog and forum post or lessons learned and recommendations going forward:
If anyone has further information please post it here and send to my email also, or give me a call.
Phone: +6499518329 (always busy)
Emailed: enquiries were sent to firstname.lastname@example.org
It is well know that Tom… only replys to ‘in-mail’ on his site.
PO Box 556
Charlestown, Nevis, KN