Already stated in the thread numerous times. Read for detail, Charlie.
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Was the Russian, Alexander Vinnik, a skilled randomly self-selected patsy who was given an obvious hole to drive through to deflect attention and prosecution?
Between the trading Willy bot and inviting highway tunnels having been backend built-in, who could make sense of the "6% of all bitcoins" forensics except the actual designer of the accident-waiting-to-happen chaos? How were the cold storage addresses and private keys acquired except by an insider, and an extremely high up one at that?https://www.youtube.com/watch?v=PVo5wCSnmSs=====================
On June 25, 2013, as Mt. Gox was being slow-bled hacked, Satoshi Bowery was on top of VirCurEx' probs:https://bitcointalk.org/index.php?topic=242961.msg2578978#msg2578978jabowery
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Re: VirCurEx down again
June 25, 2013, 09:43:02 PM
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Nikhilesh De
Jan 12, 2018 at 18:00 UTC
NEWS
Four years after cryptocurrency exchange Vircurex lost its funds due to alleged hacks, the firm is being sued by its former customers.In a lawsuit filed in the U.S. District Court in Colorado, a former Vircurex customer accuses the exchange of breach of contract, conversion of funds, fraud and unjust enrichment. The suit explained how only a few of the account holders had received their funds after the exchange froze all withdrawals due to a claimed lack of reserves.
At present, the frozen accounts contain a combined $50 million.https://www.coindesk.com/former-customers-sue-vircurex-exchange-over-frozen-crypto-funds=======================
Linode Hacks
The Bitcoin Exchange Thefts You May Have Forgotten
In the Spring of 2012......which suffered a loss of 43,000 bitcoins.
The thief involved in these particular hacks is still to this day unknown, and many suspect it was perhaps a Linode employee. ===========================
On May 12, 2012, a hacker breached the Bitcoinica Rackspace server, according to the now-defunct exchange’s founder Zhou Tong. The exchange lost over 38,000 BTC during the spring incident. In July that same year, Bitcoinica was breached again, but this time it was a stash of BTC held on the Mt Gox exchange. 40,000 BTC were stolen.
But following the heist, it was reported the funds were returned. The Bitcoinica hack is one of the most controversial within the industry as many well-known cryptocurrency community members were involved.===========================
Roman Shtylman (Jewish?) robbed--
https://twitter.com/defunctzombie?lang=en...oung Vitalik Buterin piece:
...
Bitfloor, the fourth largest exchange dealing in US dollars, has just announced[1]that it has been hacked, and the service has taken a loss of
24,000 BTC, worth about $250,000 at the time of the theft.
The unencrypted backup that allowed the thief to carry out the attack was made
when Shtylman made a manual upgrade earlier and put the data into an unencrypted partition on his disk; Shtylman has so far declined to comment further on the details of the attack, saying that “my current focus is on the future and not the past.”
https://bitcoinmagazine.com/articles/bitfloor-hacked-250000-missing-1346821046/The Bitcoin7 HeistThe Bitcoin Exchange Thefts You May Have ForgottenBitcoin7 was a business operating in 2011 that was once the third-largest BTC/USD exchange behind Tradehill and Mt Gox. On October 5, 2011, the company reported a theft of 5,000 BTC allegedly stemming from a group of Russian hackers.
However, many believe the breach was an inside job and employees ran off with the funds. https://news.bitcoin.com/bitcoin-exchange-thefts-forgotten/It is truly disappointing Satoshi Bowery is so skilled, even Daniel Kaminsky couldn't hack Bitcoin Core when it first came out.
https://www.businessinsider.com/dan-kaminsky-highlights-flaws-bitcoin-2013-4#### Dan Kaminsky
##### About
A noted security researcher, Dan Kaminsky has advised Fortune 500 companies such as Cisco and Avaya; worked for Microsoft; and is currently developing systems to reduce the cost and complexity of securing critical infrastructure.
Kaminsky is best known for his work finding a critical flaw in the internet’s Domain Name System (DNS), and for leading what became the largest synchronized fix to the internet’s infrastructure. Of the seven Recovery Key Shareholders who possess the ability to restore the DNS root keys, Kaminsky is the American representative.
The internet’s proven to be a pretty big deal for global society, and Bitcoin could basically be thought of as the Internet, applied to Money.
There’s an old comment that the internet interprets censorship as damage and routes around it. Sure, we’ve routed money over the internet for a while now, but those flows have always been managed, moderated, regulated by some vestige of authority.
Bitcoin’s about as friendly to this sort of regulation as the rest of the internet is – not very. To put it another way: Bitcoin’s a dollar bill, with a teleporter built in. We can just poke in a few coordinates and poof, off it goes, with the ease of posting to some forum somewhere. That’s somewhat new.
https://www.wired.com/2013/05/lets-cut-through-the-bitcoin-hype/ferretinjapan
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5 years ago
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One could probably liken it to the quality of code used on the NASA space shuttles that handled takeoff. Their bug to codeline ratio was 1 bug every 420,000 lines. With a total of 17 bugs ever found over 11 versions.
Bitcoin's core code that handles the cryptography was 31,000 lines IIRC. There has been at least one bug that required a hard fork to fix, and several other small issues, so it can't really be said that it is quite up to the standard of NASA's quality, but that doesn't take into account that this was implemented by one person, never got properly tested before going live and has resisted the rigours of at least 4 years of hackers trying to crack the protocol and has come though to the other side. NASA probably spent hundreds of millions working on their code, spending years testing, debugging, and probably drove many developers to a premature nervous breakdown to ensure they had a perfectly working system before they even started using it.
I'd say it really is extremely well made. People always gloss over the code and just focus on the "weaknesses" of Bitcoin like volatility, usability, and other trivial crap. I think it really needs to be drummed into people that code quality at this level, is so rare, and so amazingly thought out that pulling something like this off is simply unheard of.
Edit: clarity, also, petertodd also adds some very valid criticisms.
https://www.reddit.com/r/Bitcoin/comments/1di0yv/with_hackers_citing_bitcoin_security_and_quality/Yet, if remnant's reading of James Bowery's post that he, James, openly stated (boasted?) he was the tech on virtually ALL early bitcoin exchanges... well, it's crushing to learn James might not be as technically 'virtuosoly'-skilled at
preventing leaks, excepting in the original case of Bitcoin Core. The pressure of his shepherding, babysitting, HODLing, and morally-doling his great invention maybe got to him, and caused a diminution of his technical skills?
Kaminsky seems to have said none of the bitcoin from almost all of the major hacks has never been spent on the blockchain. I suppose he means moved out into (wallet-holding) stolen repositories. I don't know if tumblers could obviate the details. A little like hands-on overseer Charles Bronson in Death Wish? Bad or sloppy actors get punished? Bitcoin, too, would become more scarce?
