Hacked Linode & coins stolen to 1NRy8GbX56MymBhDYM...

[Micon]

I'm half a noob when it comes to exactly how the blockchain can be used to track transactions, but my understanding is that since we have the hash that stole the coins, even if he tries to wash them can't we see at least where big chunks will go?   can we track this money through the block chain?

[Revalin]

Aside from covering the losses themselves, both Slush and Zhoutong have been operating honorably and openly for some time.  This is not at all like MyBitcoin which was red flagged by plenty of people as a likely scam long before it went down.

[paraipan]

Another 10k+ BTC from Bitcoinica :-/.
https://bitcointalk.org/index.php?topic=66961

In the transaction related to your incident, one of the destination addresses had 25k BTC or so... by the looks of it the perp has amassed a lot of bitcoins and I bet there were many legit wallets in Linode with legit transactions so he can also use these to launder his money.

It's a lot of money to launder, though. We're talking about 1/4 million US$ or so.

Beware of big mining contract purchases in ferroh or GPUMax (or others) during the next few days.

zhoutong didn't provide transaction id of the robbery like slush did

http://blockchain.info/tx-index/2873808/0268b7285b95444808753969099f7ae43fb4193d442e3e0deebb10e2bb1764d0 -- may be it.

could be, if it's the only 10 grand that moved lately, will wait for zt confirm

[bbit]

I'm half a noob when it comes to exactly how the blockchain can be used to track transactions, but my understanding is that since we have the hash that stole the coins, even if he tries to wash them can't we see at least where big chunks will go?   can we track this money through the block chain?

funny I was wondering the very same thing. I don't get why anyone would steal bitcoin since when you go to "cash out" it could conceivably be red-flagged - then again they could do small amounts  BUT STILL what thief wants to sit there and do $50 cash out at a time ? can anyone explain this?

[adamstgBit]

@JeffK Full disclosure request:

What is your relationship with Linode?

Two year customer last month, never had problems but I've been around the Bitcoin community long enough to be suspicious of people who "lose" bitcoins or have them "stolen"

Ok, you're going to be suspicious of Gavin, the bitcoinica guy, and Slush?

he is suspicious of Linode itself.

[JeffK]

@JeffK Full disclosure request:

What is your relationship with Linode?

Two year customer last month, never had problems but I've been around the Bitcoin community long enough to be suspicious of people who "lose" bitcoins or have them "stolen"

And I find suspicious that after being inactive since Jan 9th 2012 you came back today...

I'm just a big Linode fan and I don't think it's fair that people are posting shit on reddit and hacker news calling them insecure before we have any statement from them, and when they have a good history of being one of the longest providers of VPSs I've known of, and has always goven me good customer service and free upgrades.


I think it's only fair to give them a chance to respond first. If I was actually a Linode employee, I'd probably be working on that response instead of posting here.

[Raoul Duke]

I'm half a noob when it comes to exactly how the blockchain can be used to track transactions, but my understanding is that since we have the hash that stole the coins, even if he tries to wash them can't we see at least where big chunks will go?   can we track this money through the block chain?

funny I was wondering the very same thing. I don't get why anyone would steal bitcoin since when you go to "cash out" it could conceivably be red-flagged - then again they could do small amounts  BUT STILL what thief wants to sit there and do $50 cash out at a time ? can anyone explain this?

Silk Road has the best laundry and you sure ain't gonna get their help, much less you'll get help from the drug dealers to whom those coins will be delivered ultimately.

[JeffK]

@JeffK Full disclosure request:

What is your relationship with Linode?

Two year customer last month, never had problems but I've been around the Bitcoin community long enough to be suspicious of people who "lose" bitcoins or have them "stolen"

Ok, you're going to be suspicious of Gavin, the bitcoinica guy, and Slush?

he is suspicious of Linode itself.

Partially this too, I'd rather hear their word on it, than some guys who are posting negative things all over before Linode posts their "Yup, it was our fauly" or "That never happened" response

[Raoul Duke]

@JeffK Full disclosure request:

What is your relationship with Linode?

Two year customer last month, never had problems but I've been around the Bitcoin community long enough to be suspicious of people who "lose" bitcoins or have them "stolen"

And I find suspicious that after being inactive since Jan 9th 2012 you came back today...

I'm just a big Linode fan and I don't think it's fair that people are posting shit on reddit and hacker news calling them insecure before we have any statement from them, and when they have a good history of being one of the longest providers of VPSs I've known of, and has always goven me good customer service and free upgrades.


I think it's only fair to give them a chance to respond first. If I was actually a Linode employee, I'd probably be working on that response instead of posting here.

So you prefer for all other business that host with them to stay relaxed and wait for their turn to be majorly ass-pounded while Linode crafts a response? Is that it?








...moron...

[JeffK]

@JeffK Full disclosure request:

What is your relationship with Linode?

Two year customer last month, never had problems but I've been around the Bitcoin community long enough to be suspicious of people who "lose" bitcoins or have them "stolen"

And I find suspicious that after being inactive since Jan 9th 2012 you came back today...

I'm just a big Linode fan and I don't think it's fair that people are posting shit on reddit and hacker news calling them insecure before we have any statement from them, and when they have a good history of being one of the longest providers of VPSs I've known of, and has always goven me good customer service and free upgrades.


I think it's only fair to give them a chance to respond first. If I was actually a Linode employee, I'd probably be working on that response instead of posting here.

So you prefer for all other business that host with them to stay relaxed and wait for their turn to be majorly ass-pounded while Linode crafts a response? Is that it?








...moron...

So the moment you move to your next host, and some customer posts something about them being insecure with very flaky 'proof', you will jump ship to another provider immediately?





...moron...

[slush]

I think it's only fair to give them a chance to respond first.

But Linode's vice president already confirmed it was security issue of Linode. He even posted the same explanation to me and Gavin. I cannot say for myself, but I think Gavin is one of most honest people around.

[Raoul Duke]

Yes I would. Better safe than sorry!

[rjk]

Better to have to re-enter the encryption password any time the server goes down, than to have no encryption at all. Linux servers never crash of their own accord anyway, unless there is something major wrong.

[bbit]

I'm half a noob when it comes to exactly how the blockchain can be used to track transactions, but my understanding is that since we have the hash that stole the coins, even if he tries to wash them can't we see at least where big chunks will go?   can we track this money through the block chain?

funny I was wondering the very same thing. I don't get why anyone would steal bitcoin since when you go to "cash out" it could conceivably be red-flagged - then again they could do small amounts  BUT STILL what thief wants to sit there and do $50 cash out at a time ? can anyone explain this?

Silk Road has the best laundry and you sure ain't gonna get their help, much less you'll get help from the drug dealers to whom those coins will be delivered ultimately.

ah got it you mean the jack-ass's that do this actually spend the bitcoins ? LOL   still even silkroad should be like oh look at that guy buying $1,000 $5,000 worth of ecstasy gee ..

[JeffK]

I think it's only fair to give them a chance to respond first.

But Linode's vice president already confirmed it was security issue of Linode. He even posted the same explanation to me and Gavin. I cannot say for myself, but I think Gavin is one of most honest people around.

Well then I'm overly shocked the rest of us haven't gotten some kind of notification.

Regardless, I find it hard to believe that a hacker who supposedly has access to all of the Linodes uses that ability to hijack a few bitcoins. i also don't believe there is any legal precedent at all that would require them to cover the Bitcoins in question.

[muyuu]

I think it's only fair to give them a chance to respond first.

But Linode's vice president already confirmed it was security issue of Linode. He even posted the same explanation to me and Gavin. I cannot say for myself, but I think Gavin is one of most honest people around.

Don't bother replying to JeffK. He already implied you are a liar by questioning your paste of that conversation.

[DeathAndTaxes]

do these incidents not bode well for online clients like Electrum or Blockchain.info?

even with encrypted user generated private keys, they can be stolen by the server when opened to sign tx's.

Server never "opens" the key.  The signing is done client side.  While you could have funds stolen it would be because of malware on your computer.  There is nothing on the server to steal.

[Raoul Duke]

JeffK, ain't it incredible how some people can value things you deem worthless?

[x1010101x]

Looks like Linode has issued a status update:

Manager Security Incident

Ensuring the security of our platform is our top priority. We maintain a strong security policy and aim to communicate openly should it ever be compromised. Thus, we are posting to describe a recent incident affecting the Linode Manager.

Here are the facts:

This morning, an intruder accessed a web-based Linode customer service portal. Suspicious events prompted an immediate investigation and the compromised credentials used by this intruder were then restricted.  All activity via the web portal is logged, and an exhaustive audit has provided the following:

All activity by the intruder was limited to a total of eight customers, all of which had references to "bitcoin".  The intruder proceeded to compromise those Linode Manager accounts, with the apparent goal of finding and transferring any bitcoins.  Those customers affected have been notified.  If you have not received a notification then your account is unaffected.  Again, only eight accounts were affected.

The portal does not have access to credit card information or Linode Manager user passwords.  Only those eight accounts were viewed or manipulated -- no other accounts were viewed or accessed.

Security is our number one priority and has been for over eight years. We depend on and value the trust our customers have placed in us. Now, more than ever, we remain committed to ensuring the safety and security of our customers' accounts, and will be reviewing our policies and procedures to prevent this from ever recurring.

[slush]

Regardless, I find it hard to believe that a hacker who supposedly has access to all of the Linodes uses that ability to hijack a few bitcoins.

If you call 13000+ BTC a "few coins", then please send me few coins back. I bet that bitcoins are the most valuable information across Linode servers at all.