[Emergency ANN] Bitcoinica site is taken offline for security investigation

[ribuck]

We are waiting for the rest to wake up and check their email accounts.

You know, for something as serious as this they should be OK for you to phone and wake them up.

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[Vladimir]

I have repeatedly told people that Bitcoinica is a scam and that Bitcoinica staff should be banned from the forums.

Maybe now people will actually listen.

Bitcoinica is a regulated entity, verifiable by government records. We are one of the most legitimate businesses in Bitcoin community, by any standard.

What is it with all the anonymous/pseudonymous guys on this forum repeatedly attacking every NAMED (and easily verified) individual and company and labelling every project run by those most legitimate operators as a scam?

Insane! Grow a brain or something.

[bulanula]

Z can u put now the site up ?

Without finding the breach i don't think it would be a good idea...
Are you in a hurry to withdraw, or?
Relax dude, i'm certain ZhouTong will do the right thing.

I'm not so certain ...

I mean 40k was OK but another 18K on top

What is they reimburse and get "hacked" again

And, as much as I would like them getting scammer tag, I don't think it is going to happen, even if they don't give anything back.

[DeathAndTaxes]

This: http://en.wikipedia.org/wiki/Port_knocking Plus this: https://code.google.com/p/google-authenticator/ Plus this: http://en.wikipedia.org/wiki/Virtual_private_network Plus this: http://www.duosecurity.com/vpn

....equals win!

I like the way you think.

Duosecurity is a great company and their "push login" is nice feature.  Still for the size of Bitcoinica they likely want their 2 factor solution not hosted by third party.

[muyuu]

Z can u put now the site up ?

Without finding the breach i don't think it would be a good idea...
Are you in a hurry to withdraw, or?
Relax dude, i'm certain ZhouTong will do the right thing.

cant short  grrrrrr

It will be too late. LULZ.

[Timo Y]

Great news!

I am pleased to know that the Bitcoin community continues funding hackers and scammers in a big way. Bitcoin creates so much wealth for everyone of us. Last time was 45k BTC though, this time it’s only 18.5k, we’ve got to do better.

Continue using a site to get g zhoutonged and give your money to hackers to devalue your Bitcoins, please!

How does this devalue Bitcoins?

Bicycles get stolen at a massive rate, probably much a much higher percentage per year than Bitcoins.  Yet this does not devalue bicycles.  
  

[Raoul Duke]

Z, is this transaction to the thieve's address also from Bitcoinica's wallet?
http://blockchain.info/tx-index/5417756/4674aa8dfdb2309ff8bbcec2446e534d3d662fa0ed11536919b647bb4c93ea37

If it isn't than he stole those 2.14 BTC from someone else. Maybe it will help. Another Rackspace customer, maybe?

Shit, one more transaction. 80 BTC this time. He's still at it. Banking like a big boy. lol
http://blockchain.info/tx-index/5426820/16938111f4c1133859424bac47cbff59d2f977390c1dedd9a28add6f10e6c571

[SgtSpike]

Sounds like u got ZHOU TONGED

What a bum bum.

[bulanula]

Z, is this transaction to the thieve's address also from Bitcoinica's wallet?
http://blockchain.info/tx-index/5417756/4674aa8dfdb2309ff8bbcec2446e534d3d662fa0ed11536919b647bb4c93ea37

If it isn't than he stole those 2.14 BTC from someone else. Maybe it will help. Another Rackspace customer, maybe?

Shit, one more transaction. 80 BTc this time. he's still at it.
http://blockchain.info/tx-index/5426820/16938111f4c1133859424bac47cbff59d2f977390c1dedd9a28add6f10e6c571

Another 80 incoming

First it was linode then it is rackspace ... nicht guten !

[N12]

How does this devalue Bitcoins?

Bicycles get stolen at a massive rate, probably much higher percentage wise than Bitcoins.  Yet this does not devalue bicycles.  

It affects Bitcoin more than the USD because the amount of BTC stolen would equal a gigantic sum of USD when you compare the money supplies. Currently 18k BTC is 0.2% (ONE FIVE HUNDREDTH OF THE BITCOIN ECONOMY!) of the total Bitcoins, which would equal 2 trillion USD if you take the M2 money supply (someone correct me if my math is wrong) Oh, and don’t forget, the US Dollar is actually an established currency and does not try to recruit new users. Your analogy is faulty.

This is why. You guys completely ignore the magnitude of this, and completely ignore that Bitcoin is an unestablished currency. Being an unestablished currency, it needs a positive sum game far greater than those of established ones to ever hope to compete. Systematically allocating wealth from wealth creators to wealth destroyers as is being done in the Bitcoin world is unsustainable if Bitcoin is to have any value, since it represents a negative sum game in which wealth is continuosly destroyed.

[muyuu]

Z, is this transaction to the thieve's address also from Bitcoinica's wallet?
http://blockchain.info/tx-index/5417756/4674aa8dfdb2309ff8bbcec2446e534d3d662fa0ed11536919b647bb4c93ea37

If it isn't than he stole those 2.14 BTC from someone else. Maybe it will help. Another Rackspace customer, maybe?

Shit, one more transaction. 80 BTc this time. he's still at it.
http://blockchain.info/tx-index/5426820/16938111f4c1133859424bac47cbff59d2f977390c1dedd9a28add6f10e6c571

Another 80 incoming

First it was linode then it is rackspace ... nicht guten !

It's maybe the email provider, not rackspace. Hotmail? Yahoo? Gmail?

[Vladimir]

This is why. You guys completely ignore the magnitude of this, and completely ignore that Bitcoin is an unestablished currency. Being an unestablished currency, it needs a positive sum game far greater than those of established ones to ever hope to compete. Systematically allocating wealth from wealth creators to wealth destroyers as is being done in the Bitcoin world is unsustainable if Bitcoin is to have any value, since it represents a negative sum game in which wealth is continuosly destroyed.

Relax. It is geek currency, hackers are geeks. So they get their share one way or another. In long run it is utterly immaterial for Bitcoin how initial distribution/emission of money is done and who are "early adopters". Actually, the quicker "early adopter" lion share of Bitcoin is diluted, the better.

[Raoul Duke]

Z, is this transaction to the thieve's address also from Bitcoinica's wallet?
http://blockchain.info/tx-index/5417756/4674aa8dfdb2309ff8bbcec2446e534d3d662fa0ed11536919b647bb4c93ea37

If it isn't than he stole those 2.14 BTC from someone else. Maybe it will help. Another Rackspace customer, maybe?

Shit, one more transaction. 80 BTc this time. he's still at it.
http://blockchain.info/tx-index/5426820/16938111f4c1133859424bac47cbff59d2f977390c1dedd9a28add6f10e6c571

Another 80 incoming

First it was linode then it is rackspace ... nicht guten !

It's maybe the email provider, not rackspace. Hotmail? Yahoo? Gmail?

Or he just got a copy of all of the Bitcoinica's deposit addresses private keys and he's sweeping the funds to his wallet as soon as they arrive. If you notice, those transactions inputs are all from recent transactions

[muyuu]

Or he just got a copy of all of the Bitcoinica's deposit addresses private keys and he's sweeping the funds to his wallet as soon as they arrive. If you notice, those transactions inputs are all from recent transactions

Why would those be in the server?

[Vladimir]

...

It's maybe the email provider, not rackspace. Hotmail? Yahoo? Gmail?

Or maybe this is NSA guys, who have access to all those emails, are messing with you.

[muyuu]

Who said the server was hacked? 

That is interesting if true. Wonder how that got out.

Zhoutong. (By hacked, meaning that the password was compromised and it was accessed).

[muyuu]

...

It's maybe the email provider, not rackspace. Hotmail? Yahoo? Gmail?

Or maybe this is NSA guys, who have access to all those emails, are messing with you.

LULz. Now seriously, it wouldn't be the first time there's a password leakage in hotmail or some other major email provider. Lots of people keep passwords there or... even allow password recovery from critical services to their email.

[Tuxavant]

How does this devalue Bitcoins?

Bicycles get stolen at a massive rate, probably much higher percentage wise than Bitcoins.  Yet this does not devalue bicycles.  

It affects Bitcoin more than the USD because the amount of BTC stolen would equal a gigantic sum of USD when you compare the money supplies. Currently 18k BTC is 0.2% (ONE FIVE HUNDREDTH OF THE BITCOIN ECONOMY!) of the total Bitcoins, which would equal 2 trillion USD if you take the M2 money supply (someone correct me if my math is wrong) Oh, and don’t forget, the US Dollar is actually an established currency and does not try to recruit new users. Your analogy is faulty.

 Systematically allocating wealth from wealth creators to wealth destroyers as is being done in the Bitcoin world is unsustainable if Bitcoin is to have any value, since it represents a negative sum game in which wealth is continuosly destroyed.

No wealth is being destroyed here.. it's just being transferred without authorization of the owner. Also, apparently plane fulls of 6 billion DOLLARS go missing everytime we invade a country (without authorization) and it doesn't devalue the dollar. Oh wait, yes it does.

[Raoul Duke]

Who said the server was hacked? 

That is interesting if true. Wonder how that got out.

Zhoutong. (By hacked, meaning that the password was compromised and it was accessed).

Yes, but was it the server password, the Bitcoinica administration password, the Rackspace management console password?
He wasn't clear, that's true.

[MiningBuddy]

So, you are still not in control of Bitcoinica?
Then, tell us, who are the decision makers that will decide if customers get reimbursed, as Zhou Tong already pointed out that it would not be his decision but from someone else?

Interesting. I didn't know the organizational structure of Bitcoinica changed recently. If I were in charge, I would still reimburse the dude.

Same here. I think reimbursing is the right way to go, even if we are shutting down the business at a huge loss.