jm + mtgox   7

Breaking open the MtGox case, part 1
Earlier today news broke of an arrest in Greece of a Russian national suspected of running a large-scale money laundering operation focused on Bitcoin. The man has since been publicly identified as Alexander Vinnik, 38, and over $4 billion USD is said to have been trafficked through the operation since 2011. We won't beat around the bush with it: Vinnik is [WizSec's] chief suspect for involvement in the MtGox theft (or the laundering of the proceeds thereof).
mtgox  theft  bitcoin  fraud 
july 2017 by jm
Mt. Gox had a chair worth $28,000
According to the bankruptcy documents, one of the assets listed is 'a chair worth 2,902,119JPY, or roughly $28,000USD.'
chairs  funny  mtgox  scams  bitcoin  furniture  assets  bankruptcy 
october 2016 by jm
The missing MtGox bitcoins
Most or all of the missing bitcoins were stolen straight out of the MtGox hot wallet over time, beginning in late 2011. As a result, MtGox operated at fractional reserve for years (knowingly or not), and was practically depleted of bitcoins by 2013. A significant number of stolen bitcoins were deposited onto various exchanges, including MtGox itself, and probably sold for cash (which at the bitcoin prices of the day would have been substantially less than the hundreds of millions of dollars they were worth at the time of MtGox's collapse).

MtGox' bitcoins continuously went missing over time, but at a decreasing pace. Again by the middle of 2013, the curve goes more or less flat, matching the hypothesis that by that time there may not have been any more bitcoins left to lose. The rate of loss otherwise seems unusually smooth and at the same time not strictly relative to any readily available factors such as remaining BTC holdings, transaction volumes or the BTC price. Worth pointing out is that, thanks to having matched up most of the deposit/withdrawal log earlier, we can at this point at least rule out the possibility of any large-scale fake deposits — the bitcoins going into MtGox were real, meaning the discrepancy was likely rather caused by bitcoins leaving MtGox without going through valid withdrawals.
mtgox  bitcoin  security  fail  currency  theft  crime  btc 
april 2015 by jm
The programming error that cost Mt Gox 2609 bitcoins
Digging into broken Bitcoin scripts in the blockchain. Fascinating:
While analyzing coinbase transactions, I came across another interesting bug that lost bitcoins. Some transactions have the meaningless and unredeemable script:

OP_IFDUP
OP_IF
OP_2SWAP
OP_VERIFY
OP_2OVER
OP_DEPTH

That script turns out to be the ASCII text script. Instead of putting the redemption script into the transaction, the P2Pool miners accidentally put in the literal word "script". The associated bitcoins are lost forever due to this error.


(via Nelson)
programming  script  coding  bitcoin  mtgox  via:nelson  scripting  dsls 
may 2014 by jm
The MtGox 500
'On March 9th a group posted a data leak, which included the trading history of all MtGox users from April 2011 to November 2013. The graphs below explore the trade behaviors of the 500 highest volume MtGox users from the leaked data set. These are the Bitcoin barons, wealthy speculators, dueling algorithms, greater fools, and many more who took bitcoin to the moon.'
dataviz  stamen  bitcoin  data  leaks  mtgox  greater-fools 
march 2014 by jm
It’s So Easy
Attempting to cash out of Bitcoins turns out to be absurdly difficult:
Trying to sell the coins in person, and basically saying he ether wants Cash, or a Cashiers check (since it can be handed over right then and there), has apparently been a hilarious clusterfuck. Today he met some guy infront of his bank, and apparently as soon as he mentioned that he needs to get the cash checked to make sure it is not counterfeit, the guy freaked out and basically walked away. Stuff like this has been happening all week, and he apparently so far has only sold a single coin of several hundred.
bitcoin  fail  funny  mtgox  fraud  cash  fiat-currency  via:rsynnott  buttcoin 
march 2014 by jm
Why Mt. Gox is full of shit
leading Bitcoin exchange "Magic The Gatherine Online Exchange" turns out to suffer from crappy code, surprise:
why does Mt. Gox experience this issue? They run a custom Bitcoin daemon, with a custom implementation of the Bitcoin protocol. Their implementation, against all advice, does rely on the transaction ID, which makes this attack possible. They have actually been warned about it months ago by gmaxwell, and have apparently decided to ignore this warning. In other words, this is not a vulnerability in the Bitcoin protocol, but an implementation error in Mt. Gox' custom Bitcoin software.


The rest of the article is eyeopening, including the MySQL injection vulnerabilities and failure to correctly secure a Prolexic-defended server.

https://news.ycombinator.com/item?id=7211286 has some other shocking reports of Bitcoin operators being incompetent, including 'Bitomat, the incompetent exchange that deleted their own [sole] amazon instance accidentally which contained all their keys, and thus customer funds'. wtfbbq
mtgox  security  bitcoin  standards  omgwtfbbq  via:hn  bitomat 
february 2014 by jm

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