Tag Archives: bitcoin horror story

Cryptopia Exchange hacked!

Cryptopia crypto exchange has been hacked.

Important Announcement
14th January 2019, the Cryptopia Exchange suffered a security breach which resulted in significant losses. Once identified, the exchange was put into maintenance while we assessed damages.

Cryptopia has notified and is cooperating with the appropriate government agenecies, including the NZ Police and High Tech Crimes Unit. Please see their media release below.

NZ Police Press Release

The New Zealand police websites states:

Investigation involving crypto-currency company
Tuesday, 15 January 2019 – 9:50pm
National News
Police were advised late yesterday of an issue involving potential un-authorised transaction activity at the Christchurch based crypto-currency trading company Cryptopia.

A significant value of crypto-currency may be involved and Police are taking this very seriously. We are currently talking to the company to gain a further understanding of what has occurred. A dedicated investigation team is being established in Christchurch including specialist police staff with expertise in this area. Police are also liaising with relevant partner agencies in New Zealand and overseas. The investigation is still in its very early stages and police are unable to provide further information tonight.

We expect to provide an update tomorrow.
ENDS
Issued by Police Media Centre.

Proof of keys! Not your private keys, not your Bitcoin! Remember this everyone! If you are storing your crypto, you really should be storing them on crypto cold storage wallets!

Follow the news from Cryptopia on their Twitter feed here.

HitBTC affiliate system scam

For years I have promoted the HitBTC crypto exchange from my sites or even to friends of mine that were interested in trading crypto. Also have always defended HitBTC when anyone spoke against it, since I always had a nice experience using HitBTC, UNTIL last year when I noticed all of my HitBTC affiliate earnings had vanished!

I have been back and forth with HitBTC support team for over a year and now I finally decide to create a blog post about this, to let the public know. (I saved all these support tickets and plan to post some screenshots soon)

HitBTC reps have been saying every time that “the new affiliate program is coming soon and your funds are safe”, I tried to be patient, but I am pretty confident now that it was all a lie.

I will continuously call them out as being a scam until my affiliate earnings balance is paid. (safe to assume they’ll be keeping all future earnings from the trading fees of my referred users).

Coinbase account terminated

On June 11th I received an email from Coinbase about account problem. I login to my Coinbase account to see this message:

NOTICE OF ACCOUNT CLOSURE
Unfortunately, we had to close your Coinbase account. Before your account can be closed, you will need to withdraw your digital currency to an external wallet and any other funds (such as USD) to a bank account associated with your Coinbase account. Please take precautions when transferring digital currency to an external wallet, as transfers outside of Coinbase are irreversible. Please also be sure to delete any external references to digital currency addresses generated by Coinbase, as funds sent to those addresses will not be accessible once the account is closed. If you have any questions you may visit https://support.coinbase.com.

I quickly submitted a support ticket

My message: “Hi, i see my account is being closed, i had no warning and i’m not exactly sure why this is happening, can you please explain?”

Coinbase reply: “Thanks for contacting Coinbase Support. I’m sorry to hear your concern regarding your account closure. Let me help you with this one.

Our primary goal is to make our platform safe and secure for our customers. Coinbase is a regulated Money Services Business under FinCEN (FinCEN.gov), and as part of our responsibility, we are legally obligated to implement regulatory compliance mechanisms.

We regret to inform you that we are no longer able to support your Coinbase account as well as any other accounts you may have created. Please note, we have not blocked access to the balance currently in your Coinbase account; while we can no longer process brokerage orders via our banking relationship, you may still send your balance offsite to an external address.

There are a variety of factors which have been weighed in your case, and we unfortunately are unable to elaborate on our internal decision process. Please know that we do not make these decisions lightly, and do regret losing you as a customer.

We wish you all the best in your future endeavors. Thank you for your understanding. Please reply to this email if you continue to have issues or need help with anything else. Take care and have a nice day ahead.

Best regards,
Ron”

I have since seen more people had accounts closed on this Reddit thread including GAB & Wikileaks.

Coinbase, what has happened to you, terminating legitimate 5 year old customers accounts, and more importantly not giving any reason!!! bad bad.

US Citizens troubles with Bitcoin exchanges

So recently I wanted to test out the Bitmex trading platform, and as I tried to begin by depositing bitcoins into my account, I get this message:

Due to local laws, BitMEX is unable to service your country (US). We cannot accept deposits. If you believe this to be in error, contact us at support@bitmex.com.

While any US citizen using Bitfinex (imho the best bitcoin trading platform around) know that they are terminating all crypto transactions from ALL US individual customer accounts:

“we are terminating trading, deposits, and withdrawal functionality for U.S. individual customers by no later than November 9, 2017.”

from this post.

WTF is going on??? I would love to hear your informations or opinions on why this is happening, is Trumpland USA really fucking shit up internationally?

/Rant

No Gemini follow up about Bitcoin Cash

gemini-bitcoin-cash-nothing

Some of us bitcoin holders held bitcoin in Gemini exchange during the Aug 1 fork, we knew Gemini was not supporting Bitcoin Cash, but after the fork and BCH/BCC become quite a valueable coin 99% of non supportive exchanges have since announced they will distribute Bitcoin Cash for their users, some have immediately (Poloniex, Cex, etc), some announced they’ll be distributing later, like Coinbase announced they’ll be distributing in January 2018.

Surely every non-supporting exchange had pressure from users, hoping and requesting they get BCH, Gemini ended up posting this on Aug 3 addressing the BCH forking issue on their blog:

Since the “hard fork” on August 1st, 2017, we have been monitoring the situation closely. Currently, Gemini does not support trading or withdrawals of the newly forked chain (BCC / BCH / BCash). As we first wrote on March 20th, 2017, and later updated on July 26, 2017, we will make every effort to support withdrawals for the chain with less total difficulty (in this case BCC). As a result, we are currently working on a technical implementation for a one-time withdrawal of BCC for our customers. With that said, any modifications we make to our digital asset storage system (including support for a one-time withdrawal), are made with extreme caution and require extensive security review to ensure the integrity of our customers’ assets. We appreciate your patience and understanding as we take the next few weeks to build this functionality in a safe, secure, and responsible manner. We will post material updates when we have them. If you have any questions, please contact Gemini customer support at support@gemini.com.

So it seems like good news, but after emailing them at their above support email, asking for an update on this situation, they responded with this generic response:

Thank you for reaching out. Currently, Gemini does not support trading or withdrawals of the newly forked chain (BCC / BCH / BCash). We have been monitoring the “hard fork” situation closely and are currently working on a technical implementation for a one-time withdrawal of BCC for our customers.

Any modifications we make to our digital asset storage system (including support for a one-time withdrawal), are made with extreme caution and require extensive security review to ensure the integrity of our customers’ assets. We appreciate your patience and understanding as we take the next few weeks to build this functionality in a safe, secure, and responsible manner.

Material updates will be posted on our blog here: https://gemini.com/blog/update-bitcoin-hard-fork-bitcoin-cash/. Please let us know if you have additional questions.

It’s actually copy and pasted from their blog. 🙁

Gemini! It’s August 21! Can you please update us, many of us have been loyal customers and would appreciate an update on this situation.

BTC-e bitcoin exchange seized by US gov

btc-e

Russian bitcoin exchange BTC-e has been seized by the US gov for possible fraud. All coins have been currently confiscated. BTC-e reps have been giving updates on BitcoinTalk forum.

Here is update #3 and most recent update is update #6, you’ll have to use Google translate probably since the entire thread is in Russian language.

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.

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.

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.