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Jun 19, 2011

[BREAKING] BIT-CON: Biggest Bitcoin exchange hacked. User database leaked. Bitcoin market flash-crashed. Great revelation on phat rich Bitcoin "pwner"!

This is bad news, but also a great revelation about the distribution of Bitcoin possession: Some hacker tried to cash out half a million of bitcoins, at least 261k of it at $0.01 from a single stolen account crashing the bitcoin market from about 17 USD to 0.01c in a few minutes. Now MtGox is locked to everyone until further notice.





Here is a direct download link to the Mtgox user database as a proof of the above: 

http://bit.ly/kE3Q4D




This seems some serious hacking attack, especially in its potential consequences, possibly by some evil entity hostile to the bitcoin project.
Alternatively, someone suggested the possibility of a "false flag" by Mtgox
Recently however, several Mtgox users lamented funds stolen from their accounts and/or ppl locked out from their Mtgox accounts:
Mt. Gox: If your coins were stolen, please write here


If your Mt. Gox account has been compromised, PLEASE READ.


It seems that MtGox refuses to assume responsability for such events, so IMHO it may be better to stay at large and use only alternative, widely reputed exchanges or traders OTC.


Moreover the event revealed that a single user owned about 8% of the 6.63 millions of currently existing bitcoins, so this person had quite some power to move the Bitcoin market around as he pleased, while it remains a mistery how he acquired a such large sum (likely not by just "mining").     


Just to have a scheme of reference for how immense the inequality in BTC distribution this means, consider this:


Bill Gates Net Worth: $56 Billion: 2011
Total global wealth: USD 195 trillion

That is several orders of magnitude (thousand times) less than the 8% of the pie owned (pwned) by the mysterious, obscenely rich Bitcoiner (Bitconner?).



I've been quite enthusiastic about Bitcoins until I knew this. Too much advantages for "early adopters" to not smell, sound, and taste like a Ponzi, where insiders "early adopters" of "monies" pulled out of their asses backed by nothing but the processor cycles of others who pay the electric bill, get 90%+ of the dough for free just for fooling hordes of suckers wannabe speculators attracted by the price inflation caused by the tulip-mania. 


Consequently, my recommendation is to not touch Bitcoins with a ten foot pole, unless their price collapses to a tiny fraction of dollar cent that they had at their origin. And even then, be very ready to lose all of your investment in bitcoins at any time.




Updates: 

Was any account actually hacked? Or was the system itself compromised? 


George Clooney roils the Bitcoin market












Kevin Day, New Bitcoin Multimillionaire worth 5 Million dollars
This is very interesting. He claims he bought 250,000 bitcoins for .01 each, and








he is not a hacker.
Someone sold 500,000 bitcoins at once, from one account that may have been 

hacked.

Problems are arising with mt gox story.

Mt Gox wants to rollback, but of course Kevin is against it.
Mt gox claims someone hacked into account A, then sold off coins, then tried 

to buy them back. Apparently Kevin beat them to it.

But Mt Gox claims different. ?

________________


Wait...  there is more incoming:
http://securityforthemasses.blogspot.com/2011/06/someone-offering-tradehill-bitcoin.html







Quote
Someone Offering TradeHill BitCoin User/Pass hashes Now...
tradehill bitcoin exchange user/hash passes out now
unsalted, email for details
gfc07@gmail.com



 I'm Kevin, here's my side.


 Hacked Account Owner: is a Buddhist Monk


It's obvious MagicalTux is the user who had his account hacked!
_______


Related:






















Huge crash and compromised data on MtGox




















Video: Mt. Gox / Tradehill “press conference” over massive hack and selloff going on right now.

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