Silk Road 2 Hacked: Entire Bitcoin Wallet Drained, $2.7 Million Stolen

[steve2470]

http://www.ibtimes.com/silk-road-2-hacked-entire-bitcoin-wallet-drained-27-million-stolen-1555433

Using the same transaction malleability bug in bitcoin’s protocol that led to bitcoin exchanges like Mt. Gox and BitStamp shutting down withdrawals, hackers cleaned out the bitcoin wallet belonging to Silk Road 2, an underground Internet black market that launched in October after the FBI shut down the original Silk Road.

The hackers made off with 4474.27 bitcoins, roughly the equivalent of $2.7 million.

Silk Road 2’s administrator, known by the username Defcon, said that because transaction malleability is a problem with bitcoin itself, none of its anti-hacking measures could prevent the hack. The only currency accepted on Silk Road 2 is bitcoin.

As it did when the original Silk Road was shut down, news of the hack drove down the cost of bitcoin (some believe the now-imprisoned founder of Silk Road had ties with the mysterious creator of bitcoin). This time, bitcoin tumbled $50 and is currently sitting around $600 per bitcoin.

[MannyGoldstein]

1. LOL. I guess BitCoin has outlived its usefulness

to its creator, the NSA.

[bemildred]

2. "transaction mallebility", that's an interesting term.

It suggests that the guaranteed nature of bitcoin transactions isn't.