Tag Archives: bitcoin horror story

Mt Gox situation will pass and bitcoin will thrive once again

Mt Gox (aka “Empty Gox”) filed for bankruptcy protection Mark Karpeles admits all the money is gone, vid/article here. As of now there is an estimated 750,000 – 850,000 bitcoins that have gone missing from MtGox.

mtgox_protest Kolin Burges

For those of you that had money or bitcoins in your MtGox account, the recovery process has begun. There is a class action suit against MtGox and CEO Mark Karpeles, to join the class action suit check this page http://www.mtgoxrecovery.com There are currently over 1000 participants. The actual Greene vs MtGox Inc file is here.

Here is a nice timeline of MtGox since they began exchanging bitcoins back in 2011. Check it out here.

To those that lost on MtGox I wish you all good luck getting your money and bitcoins back.

Sponsor TalkBitcoins.com, add your link here, every post, contact me

BitcoinTalk.org website has been hacked and compromised

Received this email today:

Email title: BitcoinTalk.org Forum Compromised

—–BEGIN PGP SIGNED MESSAGE—–
Hash: SHA256

Unfortunately, it was recently discovered that the Bitcoin Forum’s server
was compromised. It is currently believed that the attacker(s) *could* have
accessed the database, but at this time it is unknown whether they actually did
so. If they accessed the database, they would have had access to all
personal messages, emails, and password hashes. To be safe, it is
recommended that all Bitcoin Forum users consider any password used
on the Bitcoin Forum in 2013 to be insecure: if you used this
password on a different site, change it. When the Bitcoin Forum
returns, change your password.

Passwords on the Bitcoin Forum are hashed with 7500 rounds of
sha256crypt. This is very strong. It may take years for
reasonably-strong passwords to be cracked. Even so, it is best to
assume that the attacker will be able to crack your passwords.

The Bitcoin Forum will return within the next several days after a
full investigation has been conducted and we are sure that this
problem cannot recur.

Check http://www.reddit.com/r/Bitcoin/ and #bitcoin on Freenode for
more info as it develops.

We apologize for the inconvenience.

Sponsor TalkBitcoins.com, add your link here, every post, contact me

The Silk Road busted and $3.6M worth of Bitcoins seized by US Gov

The famous Silk Road website has been seized and the owner arrested. The FBI, DEA, and more US government agencies in a combined effort tracked down the creator of Silk Road Ross William Ulbricht.

silk_road_seized

Here is the official PDF filed complaint against Ross William Ulbricht, aka Dread Pirate Roberts, aka DPR, aka Silk Road: UlbrichtCriminalComplaint.pdf. Charges are from money laundering to drug trafficking.

Sponsor TalkBitcoins.com, add your link here, every post, contact me

When will this mini Bitcoin crash begin upwards?

We’ve all seen the Bitcoin stabilize at around $130, then around $100, and now it’s $75-80.

When do YOU think the BTC will begin rising again?

I’d like to hear feedback from all the users of Talk Bitcoins site.

(post opinions in comments please. Thank you)

Sponsor TalkBitcoins.com, add your link here, every post, contact me

Satishi Dice closing its doors to USA customers

Satishi Dice blocking USA customers

Satishi Dice blocking USA customers

Here is the recent announcement from Satoshi Dice, the largest Bitcoin gaming website:

“Dear Community,
Beginning tomorrow, Thursday May 16, SatoshiDice.com will close to US players and all US-based IP’s will be blocked from the website. You will also see a new terms of service agreement to which you must agree if you wish to play.
This decision was made on the basis of extensive legal counsel. The best way to limit legal risk for SatoshiDice, and thereby protect its stakeholders, is to block US players.
Note that this decision does not mean that online gambling is illegal in the US, nor does it mean that Bitcoin gaming is illegal. However, the courts have not been clear on the definition of gambling, nor on what would constitute “legitimate gaming,” nor are jurisdictions properly defined, and thus this is a proactive measure to protect those involved in the project.
Further, this decision is not being made because of any citation or notice from any government agency, whatsoever. This is not, in any way, related to the recent Gox/Dwolla court order issue. Again, it is a proactive measure, based on the prudent legal guidance of our trusted lawyers.
We believe this is a wise move for the site to perpetuate in the long term.
Further, to clarify, SatoshiDice is hosted in Netherlands, Iceland, and Ireland, and has never utilized US currency or engaged with the US banking system whatsoever.
-SD”

Sponsor TalkBitcoins.com, add your link here, every post, contact me

Operation Shock and Awe

I just seen this file that is a greedy and lowlife attempt at attacking Bitcoin trading websites so that the users involved can buy the BTC once they’ve lowered the price, and then sell once the price has gone back up.

Really shady technique some people will use to get money. Really lowlife scum.

Here is the exact information:

Operation Shock And Awe 2013-04-22

Operation Shock And Awe 2013-04-22

===OPERATION SHOCK AND AWE
===Date: Monday 2013-04-22
===Start time of event: 15:30 UTC
===Goal: Bring bitcoin price < $30 US dollars Members, here it is, today's timeline of events. 15:30-15:45 UTC - Spread bogus AP press releases to 50+ national US and British media outlets and 100+ local outlets indicating exchange site Mt. Gox under investigation by Japnese government for securities fraud, with seizure and asset freeze soon 15:45-16:00 UTC - After initial publication of bogus AP press releases, spam story on reddit and upvote with sock accounts, spread panic in comments using sock accounts 16:00 UTC - Several sellers lined up for a coordinated dump of 250,000+ BTC which will crash the price to under 100 to correlate in time with publication of bogus AP reports 16:10 UTC - Massive coordinated http packet flood (distributed F5) from botnet of 1,000,000+ compromised machines on the following sites: - https://www.mtgox.com - https://btc-e.com - https://www.coinbase.com - https://www.bitpay.com - https://www.bitinstant.com - https://www.bitcoitalk.org - http://s2.bitcoinity.org - http://bitcoinium.com/ - http://bitcoincharts.com/ 16:30 - 17:00 UTC - During the ddos, buy only from Bitstamp which will not be included in the ddos but was included in the coordinated dump. 17:00 UTC - Stop ddos, buy as much cheap bitcoin from MTGOX as possible as quickly as you can 17:00 or later - Bogus AP reports will be corrected / debunked as hoax, price will rebound Potential profit 200-300% You all know your stations, distribute this paste to the rest of the group as it won't last long on the hidden wiki. Don't let this get out to the public, we need the price to remain high at 120 leading up to the event for maximum effect. ~~ PREPARE FOR SHOCK AND AWE ~~ http://pastebin.com/QAPxhEbP

Sponsor TalkBitcoins.com, add your link here, every post, contact me

Coinabul has many scammer accusations

Coinabul deemed as a scammer site from many users

Coinabul labeled as a scammer site from many users

Warning: Coinabul trying to defraud customers!
https://bitcointalk.org/index.php?topic=181662.0

SCAMMER Coinabul owes me 3.3 BTC!
https://bitcointalk.org/index.php?topic=179931.0

SCAM – Coinabul owe me 81btc
https://bitcointalk.org/index.php?topic=149253.0

SCAM – Coinabul owe me 90btc
https://bitcointalk.org/index.php?topic=152382.0

Don’t buy anything from coinabul. Yet another complaint.
https://bitcointalk.org/index.php?topic=152575.0

I have emailed them asking their side of the story for these incidents, this is their reply:

We process an ungodly sum of bitcoins, and a massive number of transactions. Literally millions of dollars worth of products have been sent by us in the last few months alone, in thousands of unique transactions. Out of all of those, we have never failed to deliver products or done our best to provide recompense if providing a product is not an option. However, the Bitcoin market is still highly experimental and populated by many less-than-stable individuals who like to make a lot of noise, complain for no reason, demand we break the law, attempt continual fraud against us, et cetera. This week our current statistic is 3.125 parcels shipped per work-hour, with an average value of approximately $5,000 per parcel. With us shipping approximately $250k in orders within the last 48 hours alone, as well as myself working an average of 20 hours per day for the last few years, I have to say that you’re quite incorrect.

Our numbers stack up higher than just about any other Bitcoin-related endeavor in existence, and to not expect a few irrational/unhappy loud voices after such a massive track record is rather unrealistic. You will find that outside of Bitcoin-land, you see the same type of behavior although it’s far less prevalent than within. A great example is these kinds of reports about APMEX, who is currently the largest online retailer in the USA. Before I started dealing with large purchases for my own personal reserves years ago, I’d use them for little bits of silver and gold consistently. They deal with billions in volume, I’ve had nothing but good experiences with them, and yet you find lots of angry people.

Moral of the story is, you can’t please everyone and while the really happy customers are quiet, the angry ones always make a big stink. I think both of us would be better served if all of the investigation could be more focused on the people selling drugs and illegal weapons, or nonexistent ASICs, or nonexistent paper-backed gold ETF’s, than the folks like me who are absolute sticklers about morality and helping the growth of both the Bitcoin and bullion markets.

-Jay

I must say, this is very understandable. Every huge company is going to have some negative feedback mixed in with the majority of positive feedback. I just hope those people claiming that Coinabul is a scam are not quick trigger complaints.

Sponsor TalkBitcoins.com, add your link here, every post, contact me

Bitfloor ceases all trading operations

Bitfloor is closing due to US banking problems

Bitfloor is closing due to US banking problems

Some threads at BitcoinTalk.org
“Bitfloor shutting down” https://bitcointalk.org/index.php?topic=179231.0
“Bitfloor closes down, but with no interest in making things right” https://bitcointalk.org/index.php?topic=179689.0
“Bitfloor trading suspended” https://bitcointalk.org/index.php?topic=179198.0
“Bitfloor ceases operation reasons rumor/speculation” https://bitcointalk.org/index.php?topic=179457.0

And at CNET: http://news.cnet.com/8301-1023_3-57580163-93/bitcoin-exchange-bitfloor-halts-operations-shuts-down/

From their site:

All trading is currently suspended.
I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past. As such, I have made the decision to halt operations and return all funds.

Over the next days we will be working with all clients to ensure that everyone receives their funds. Please be patient as we process your request.

– Roman
founder – bitfloor.com

Sponsor TalkBitcoins.com, add your link here, every post, contact me

MtGox DDoS’d again and attacks on many others

Well it’s that time again. It looks like MtGox and many other Bitcoin trading sites are under attack. Hacking attempts, DDoS attacks (distributed denial of service attacks) and other forms of attempts to slow the growth of Bitcoins.

MtGox, Bitfloor, Btc-E, Bitstamp, Bitcoinity, BitcoinCharts, Coinbase are some that I’ve personally noticed that are being attacked, anyone know of others please let us know by posting comments.

Bitstamp is down

Bitstamp is down

Bitcoinity and Bitfloor also attacked?

Bitcoinity and Bitfloor also attacked?

BitcoinCharts 502 Gateway error

BitcoinCharts 502 Gateway error

Bitcoinity.org is offline

Bitcoinity.org is offline

Bitcoinity down for maintnence muppet announcement

Bitcoinity down for maintnence muppet announcement

Coinbase right this minutes says you can sell at $101 or buy at $184.

Sponsor TalkBitcoins.com, add your link here, every post, contact me

Current Coinbase buy problems

Impossible to buy Bitcoins at Coinbase

Impossible to buy Bitcoins at Coinbase

For the past 3 weeks, still no customers are able to buy BTC from Coinbase 🙁

Note! We’ve exceeded our normal buy limits for today. If you would still like to purchase you will receive the market price of bitcoin on Friday Apr 12, 2013 at 12:18PM PDT after your funds have arrived. read more

and

Sorry, the maximum number of purchases on Coinbase has been reached. This is a 24 hour rolling limit with no specific start time. Please try again later. We’ll continue raising this limit over time.

Those are the two errors you can see in your Coinbase admin when trying to buy.

Sponsor TalkBitcoins.com, add your link here, every post, contact me