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Author Topic: [EMUNIE] Important Announcement: BTC Theft  (Read 6298 times)
Fuserleer (OP)
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June 07, 2014, 03:47:48 PM
 #1

Brothers in Crypto,

I wanted you all to be aware that we have a financial terrorist among us attempting to extort money from myself and likewise further damage the crypto-currency movement, of which we are all passionately involved. This individual’s goal is no doubt targeting all of us in that their actions add further reasons towards preventing our achieving global acceptance.

I am speaking to you as a common member of this movement in the spirit of open and honest communication towards allowing you to understand what has transpired against us.

As many of you may remember, a few months ago our remote servers were under constant attack and resulted in the eMunie website and forum being taken offline on a few occasions. Soon after these attacks the assailants gained access to several online services I control, and most certainly had some form of access to 1 or more machines on my home network and also our remote servers.

Resulting from these coordinated breaches, the assailant made off with over 600 BTC from my own personal BTC wallets and accounts, as well as a sizable amount from of our pre-launch fundraising activities.

Additionally some old backups of the eMunie source code were downloaded and will probably surface on the internet soon after this announcement. This source code is not compatible to any current eMunie code base and is mainly older prototype code, thankfully I had switched backup requirements some time before this attack and thus many of the functions that give eMunie it's edge are still safe.

Extensive time, effort and resources has been expended to understand how these attacks may have been possible, and to track down the offenders whereabouts. Unfortunately at this time, the identity of the thief can not be ascertained with 100% confidence, but I hope in light of recent renewed activity on their part and with help of the community maybe assisting in the search, we can identify the thief and exert some justice.

With regards to the possibility of further attacks, after this event all network infrastructure was changed with revised security methods and a change of service providers where required. These efforts included fortifying my home network and the machines that run within it, including additional internal and external proxy systems between myself and the internet. A second local network that I now use for development and the storage of sensitive information is also in place and connects via an on demand only internet connection when absolutely required.

The methods employed to gain access to remote and local systems are most likely a possibility of 2 which I will detail more in another report, the summary of which, and affected systems is below:

The systems/accounts that were affected were my personal Gmail account (which possibly linked as a backup to my ancient personal Hotmail account) as well as multiple wallets across many reputable online trading services.

Our hosting panel for some remote systems was also breached, as security there is not particularly as great as it should be for a large ISP. I believe this was the primary entry point to gain access to my home systems, with some malicious code planted and a mechanism to transfer upon next login to my home machines. From my home machines it was only a matter of time before access to pretty much everything was possible. At no point did any of the protection on these home machines indicate any virus, trojan or the sort, and considering the complexity of the hack (and how well any evidence of activity was removed) it was certainly an attacker/s of "professional" caliber and likely some custom software made to do that specific job.

No passwords for any of these accounts were kept in any electronic medium so that method was not employed to compromise them. I can only surmise that initially they gained access through the use of "Security Questions" to reset the passwords on less secure accounts, which due to my public profile and online history would not be that difficult to breach.

Based on this revised security implementation the thief is now unable to gain access to any services or accounts, and have noted recent extensive activity since the theft which is clearly such an attempt. As such, he now finds himself having to move towards extortion for further financial rewards by threatening to go public with his prior actions in an attempt to damage our reputation within the crypto-world.

As I stand by my own word and moral character I have personally covered the loss of all eMunie funds so that that the impact to our operations and activities are completely and absolutely unaffected. This was a decision I made personally as I wanted to take the time to ensure there was no loss of momentum for our project development, as well as to allow me time to begin an investigation towards discovering who this person was.

Since the attack and theft, over 300 BTC has been requested in refunds for various reasons to numerous investors, all of which have been returned without incident from my own pocket. I have ensured to keep a steady amount of funds available to be able to purchase BTC as and when required to meet these demands, aside from the occasional delay in purchasing BTC in mass amounts, all refunds have been honored. With that in mind, I would be grateful if perhaps those of you that requested refunds and received them could stand forward and state as such, providing that it does not cause you any ill consequences by doing so.

In light of this news, I am fully aware that many of you will decide to reclaim your investments too, and no ill regard will be taken against you should that be your wish. I am at present in process of repurchasing large amounts of Bitcoin in anticipation, to cover any individuals that might feel they want to be refunded from the project at this time and they can be assured that their initial contributions are still completely valid and secure. I do request, however, that if you wish to leave the project you would have a modest amount of patience for this effort, as acquiring large amounts of Bitcoin, with bank held fiat funding is not a speedy process and can take some time.

Frankly, I am personally disgusted by such a move as I have always strived to maintain a high moral character and reputation with regards to the ideals of the crypto-community. We receive enough mockery from the mainstream press and other communities already for our efforts here and these events only serve to fuel that mockery further. Accordingly, any damage to our collective reputation only serves to weaken our combined efforts to change the face of global financial services.

It is no secret that both myself and the eMunie project have been the target of many attacks over the past year, we have been mocked, laughed at, my personal status and morals have been wrongly brought to question, endless scathing personal insults, and numerous minor disruptions many times, all of which have been overcome and will continue to be so.

I outright refuse to yield to these attempts to halt the vision that is eMunie, and regardless of the outcome from this event, I will not be deterred from completing the goal which I have set. Be it with community support or none at all, eMunie will be a success and I will do whatever it takes to ensure that becomes fact.

TO THE THIEF:

Your original attack was smart, well coordinated and perfectly executed, you obviously took your time and tested for cracks, committing your attack when I was at my most occupied with other matters holding my attention. However, you should have stayed happy with your ill gotten gains, as your recent secondary attacks have not been quite so well played and you have let sheer greed get the better of you.

My trail to you had all but gone cold, and I was in the position of simply having to take the hit and allow spilt milk be just that. Alas, for you, your recent efforts and attempted extortion have done nothing more than to put into motion my forced hand. You called my bluff, I never bluff.....

What awaits you is an existence where you dare not raise your head above water, for the fear of someone, somewhere waiting with a golden axe. I am a calculated man with resources, who can be cunning when needs to be, and I will use all resources that I have to track you down, and I will start with those gold axe's.

I am going to put a bounty on your "head", the 40BTC that you attempted to extort from me. In addition to that, this bounty will increase over time, indefinitely, each week by 1 Bitcoin. This will continue until such a time that reliable information is provided that leads to you, results in your capture and full wrath of the law brought against you, or that the bounty amount is so high, rewards pledged for America's most wanted seem insulting.

By that point I imagine internet bounty hunters finding your whereabouts are the least of your worries.

Checkmate!

You have 2 options:

1. Return the stolen Bitcoins, in full, within 2 weeks. After this period, the bounty will never be lifted and negotiations of any sort are impossible.
2. Run & hide, well, and forever.


If anyone wishes to aid in the search for this financial terrorist then I will be collecting the newest information I have so far and will be publishing these details once the immediate hysteria has calmed, to aid in their eventual identification. I will also be placing the 40BTC bounty into a reputable escrow provider over the next week or so, the timeline of which purely depends on how much BTC I need to purchase to fulfill investment refunds, as that is of course my #1 priority.

Additionally if anyone has suggestions of ways I may not have been aware to attempt to track down this individual, please let me know also.

Finally, to all that have shown me support and faith, I can only offer my sincerest apologies and humbly ask that you do not allow this event to distort your perception of my character and intent. Responsibility of those funds is solely mine and I will carry that responsibility regardless, my vigilance in protecting them was simply not enough and I will pay the cost of that loss without complaint.

- Dan Hughes

For the record, none of the Founders, or any other individual associated with eMunie knew of this event prior to today!

Original Link to Attached PDF containing this text:

https://www.dropbox.com/s/fkhh875u9zokfba/Announcement Of BTC Theft.pdf

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June 07, 2014, 03:51:06 PM
 #2

Events such as these are a sad reality of the world we live in as managing security is a never-ending battle we all fight daily.

However, I can personally state that I am, and will continue to be, a loyal and dedicated member of this project. From my 6 months of communications on this project as well as from several in-person 1-on-1 meetings with Dan I have never once found him to be anything but an individual of the highest moral character and ideals. As someone with an above-average net worth it was inevitable that some low-life would eventually target him personally as this event demonstrates.

I am deeply saddened for the financial toll this has taken upon him personally, but I would hope anyone reading this would appreciate how his actions in response to the event only further serve as a supreme and unquestionable example for how much integrity he truly possesses. How many other thefts of this magnitude were mitigated from the victim's own wallet? None that I'm aware of. The fact that he has personally guaranteed the funds previously provided by all contributors is just another reason why I will remain a vocal and dedicated follower.

The primary reason I stay here is actually because of a core ethics I maintain with my investments which can be stated simply as:

Invest in "People", not "Products"

Accordingly, I can find no better investment than the one I place in Dan and his unwavering commitment to this project.

RADiX (formerly eMunie): The future of money
Sharky444
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June 07, 2014, 04:19:19 PM
 #3

The theft is a setback, but it doesn't endanger the eMunie project. No investor money has been lost, as Dan has covered all losses from his personal fundings. Kudos to him for that.

It does not matter how much time you spent securing your web server and desktop computers, there is always the possibity for a hacker to enter a system by using some software vulnerability. OpenSSL, web servers, and web browsers have tons of bugs that are often not fixed for months or even years.

Keyloggers are the usual attack weapon, and we have been thinking about alternate eMunie wallets that can be optionally not only tied to a password (that can be easily stolen), but also to hardware devices (not a trivial issue, because if a hardware becomes unusable by electronic defects you would loose your funds).

I'm confident eMunie will be the next step in achieving improved computer security. It will not disallow theft alltogether, but make it more difficult to steal compared to current systems like BTC.

Radix - just imagine
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June 07, 2014, 04:38:09 PM
Last edit: June 08, 2014, 04:17:38 AM by digitalindustry
 #4

Can i politely ask if you were running Windows?

i mean , don't feel bad most ATM run XP...

so...

sorry for you loss, but remember when i attended your forum and filled you guys in a bit?

Emuni is a bold project i will still invest something in it once i have ironed out the details and can see its specifics - ** edit and when it is open source in a common language.

-----------------------

To Dan

The problem that i think emuni is suffering from is the - "one man source issue" , now i don't want you to take that the wrong way, but you have put so much hard work into this you obviously feel that you will not be compensated duly if it is not done this way, let me tell you.

you are wrong Dan.

these filth only live in dark places such as close source, you have to step into the light Dan, you should have built the basic structure, and then spread work out to community keep it open source and in a common language.

in this way attackers that see these systems as a threat, at best can what?  make cheap copies ? troll you forum ? with a product in the environment constant new members will come along, this is why one guy telling the truth can uproot a 1000 mindless religo weirdo bots. 

if you love your work, give it away like light, these dim idiots don't like light.

the world will replay you Dan. 

- Twitter @Kolin_Quark
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June 07, 2014, 04:43:04 PM
 #5

“It is not the strongest or the most intelligent who will survive but those who can best manage change.”
― Charles Darwin

- Twitter @Kolin_Quark
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June 07, 2014, 04:48:42 PM
 #6

“It is not the strongest or the most intelligent who will survive but those who can best manage change.”
― Charles Darwin


Hear Hear!

I couldn't agree more. Bad things can, and do, happen. The judge of a man's character (which is all that truly matters) is how he responds to the events that affect him. Dan's response to this situation only serves to strengthen my commitment.

RADiX (formerly eMunie): The future of money
r3animation
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June 07, 2014, 04:56:30 PM
 #7

Well this is really unfortunate however I believe in Dan and will keep my investments with the eMunie project.
kelsey
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June 07, 2014, 05:05:28 PM
 #8

Post wallet address.
wingspan
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June 07, 2014, 05:17:27 PM
 #9

Well this is really unfortunate however I believe in Dan and will keep my investments with the eMunie project.

+1

Go Dan, many are behind you even more due to your steadfastness and fortitude in the face of naysayers, attackers, and second-guessers and how you have chosen to respond professionally.
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June 07, 2014, 05:25:44 PM
 #10

They still paper money. they still electronic money, they still crypto...

There was a really cool punishment for stealing - cutting hands off. We should bring it back.
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June 07, 2014, 05:28:56 PM
 #11

Looks like someone is pulling a Baritus here.  If this was actually legit, you would have posted the wallet address.

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okiefromokc
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June 07, 2014, 06:09:06 PM
 #12

This is a sad post to read... it affects all of the cryptocoins... not just this one person...
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June 07, 2014, 07:39:16 PM
 #13

I haven't followed eMunie to much, though I was ready to invest once it was out of beta.  Regardless, this type of news always sickens me to have to hear and I offer my deepest sense of solidarity.

I hope the best for you, Fuserleer, your supporters.  This type of news only weakens the image of cryptographic currencies and, in turn, hurts all of us.  I hope that justice is served effectively and swiftly against those who have stolen these funds.

A Personal Quote on BTT from 2011:
"I'd be willing to make a moderate "investment" if the value of the BTC went below $2.00.  Otherwise I'll just have to live with my 5 BTC and be happy. :/"  ...sigh.  If only I knew.
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June 07, 2014, 08:19:48 PM
 #14

Brothers in Crypto,

I wanted you all to be aware that we have a financial terrorist among us attempting to extort money from myself and likewise further damage the crypto-currency movement, of which we are all passionately involved. This individual’s goal is no doubt targeting all of us in that their actions add further reasons towards preventing our achieving global acceptance.

I am speaking to you as a common member of this movement in the spirit of open and honest communication towards allowing you to understand what has transpired against us.

As many of you may remember, a few months ago our remote servers were under constant attack and resulted in the eMunie website and forum being taken offline on a few occasions. Soon after these attacks the assailants gained access to several online services I control, and most certainly had some form of access to 1 or more machines on my home network and also our remote servers.

Resulting from these coordinated breaches, the assailant made off with over 600 BTC from my own personal BTC wallets and accounts, as well as a sizable amount from of our pre-launch fundraising activities.

Quote clipped because tldr -- don't need anything beyond this last part anyway.

THE REALITY: OP is too stupid to manage other individual's funds.

OP'S REALITY: it's the thief's fault for taking advantage of this.

NEXT STEP? Run crying to big brother I guess; you're not ready for Bitcoin.

Marriage is a permanent bond (or should be) between a man and a woman. Scripture reveals a man has the freedom to have this marriage bond with more than one woman, if he so desires. But, anything beyond this is a perversion. -- Darwin Fish
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June 07, 2014, 08:22:45 PM
 #15

Were you guys also using the Usagi Backup Method?

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June 07, 2014, 08:31:47 PM
 #16

OP is personally coughing up the stolen funds and you people are still trolling? C'mon.

burp...
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June 07, 2014, 08:35:48 PM
 #17

NEXT STEP? Run crying to big brother I guess; you're not ready for Bitcoin.

Be careful of the finger you point at someone as there are 3 other fingers pointed back at yourself.


https://bitcointalk.org/index.php?topic=395761.msg6254498#msg6254498
April 16, 2014
Who is "the real Daniel P Barron?"
I can prove I am who I claim to be; that is, the user in question regarding this loss of BTC.

RADiX (formerly eMunie): The future of money
danielpbarron
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June 07, 2014, 08:39:03 PM
 #18

NEXT STEP? Run crying to big brother I guess; you're not ready for Bitcoin.

Be careful of the finger you point at someone as there are 3 other fingers pointed back at yourself.


https://bitcointalk.org/index.php?topic=395761.msg6254498#msg6254498
April 16, 2014
Who is "the real Daniel P Barron?"
I can prove I am who I claim to be; that is, the user in question regarding this loss of BTC.

LOL; alright let's do this.

Those were my funds (not investors).

It was an amount I could afford to lose (because I knew counterparty is sketchy new software).

The funds were lost due to a bug in the aforementioned sketchy software, which I helped them discover and fix.


Any other points you want to make? Maybe try scanning through my twitter history; I'm much more active on there. http://twitter.com/danielpbarron

Marriage is a permanent bond (or should be) between a man and a woman. Scripture reveals a man has the freedom to have this marriage bond with more than one woman, if he so desires. But, anything beyond this is a perversion. -- Darwin Fish
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June 07, 2014, 08:45:14 PM
 #19

NEXT STEP? Run crying to big brother I guess; you're not ready for Bitcoin.

Be careful of the finger you point at someone as there are 3 other fingers pointed back at yourself.


https://bitcointalk.org/index.php?topic=395761.msg6254498#msg6254498
April 16, 2014
Who is "the real Daniel P Barron?"
I can prove I am who I claim to be; that is, the user in question regarding this loss of BTC.

LOL; alright let's do this.

Those were my funds (not investors).

It was an amount I could afford to lose (because I knew counterparty is sketchy new software).

The funds were lost due to a bug in the aforementioned sketchy software, which I helped them discover and fix.


Any other points you want to make? Maybe try scanning through my twitter history; I'm much more active on there. http://twitter.com/danielpbarron

LOL. Just speaking for myself here, but other eMunie founders might see this the same: we have some great piece of software to work on. No need to waste our time with your boring twitter account. May I invite you to read the really interesting stuff? Go to forum.emunie.com

You want less fees? - You want a stable currency? - You want a fair distribution of raised funds? - You want anonymous transactions and communication? - You want so much more that doesn't fit in this line and will look crappy when writing it down because it will just be so much? - JOIN RADIX!
Co- Founder of Radix http://www.radix.global
fluffypony
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June 07, 2014, 09:06:32 PM
 #20

NEXT STEP? Run crying to big brother I guess; you're not ready for Bitcoin.

Be careful of the finger you point at someone as there are 3 other fingers pointed back at yourself.


https://bitcointalk.org/index.php?topic=395761.msg6254498#msg6254498
April 16, 2014
Who is "the real Daniel P Barron?"
I can prove I am who I claim to be; that is, the user in question regarding this loss of BTC.

I see. So because he lost 0.385 BTC of his own money due to a bug in the CounterParty wallet (it seems), he's not allowed to criticise someone incapable of properly securing HUNDREDS of Bitcoins? I see.

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