[LINK] BitCoin DDoS and/or Wallet-Hack

[Kim Holburn]

On 2013/Apr/04, at 1:00 PM, Michael Skeggs mike at bystander.net wrote:

> All I needed to know about how seriously to treat this anon banking/trading
> attempt I found out when I learned MT Gox is an acronym for Magic the
> Gathering online eXchange - a place where people used to swap fantasy
> themed game cards.

That's it?  That's your only reason?

> This is not the banking-level security you are looking for.

I'm not sure banks are always that good on online security.  The basic thing is that a company (potentially) losing money is an awfully good motivation for good security.  A group that started online is more likely to have a clue in this regard.

> The bitcoin reference implementation itself, however, has proven pretty
> bullet proof. But it has illustrated there are a bunch of things needed to
> make an online currency beside the coinage.

Yes but without the coinage none of the other things are going to evolve, are they?

> Regards,
> Michael Skeggs
> 
> 
> On 4 April 2013 12:53, Roger Clarke <Roger.Clarke at xamax.com.au> wrote:
> 
>> Bitcoin value in rollercoaster ride after DDoS attack
>> Juha Saarinen
>> itNews
>> Apr 4, 2013 9:46 AM (3 hours ago)
>> 
>> http://www.itnews.com.au/News/338624,bitcoin-value-in-rollercoaster-ride-after-ddos-attack.aspx
>> 
>> Wallet service raided.
>> 
>> Digital cryptographic currency Bitcoin suffered a huge drop in value
>> today, allegedly due to a denial of service attack against the
>> largest Bitcoin trading exchange.
>> 
>> At the largest Bitcoin exchange, Mt Gox, Bitcoin rose sharply to
>> US$147 before dropping to US$126 in just over an hour of trading. It
>> then recovered to over US$140 before starting to trend downwards,
>> hitting as low as US$113. Bitcoin against the Aussie dollar is
>> showing a similar trading pattern.
>> 
>> Currently, Bitcoin is trading at US$123 at Mt Gox.
>> 
>> On its support site, the Mt Gox exhange told users that there would
>> be delays with deposits and withdrawals.
>> 
>> "Due to a DDos attack, Dwolla deposits and withdrawals are currently
>> not being processed and we are expecting some delays. This is
>> expected to be resolved in 12 hours. Our apologies for the delay and
>> inconvenience caused. Thank you for your patience while we work to
>> resolve this."
>> 
>> As of writing, representatives from Mt Gox said the issue has been
>> resolved.
>> There is speculation that the swings in value are connected to a
>> Bitcoin deposit service, Instawallet, being hacked and suspended its
>> operations indefinitely.
>> 
>> Instawallet has not revealed how many Bitcoins were stolen in the
>> raid on its database, but says it will start processing claims for
>> users with wallets containing less than 50 BTC.
>> 
>> Those with more deposited may not be refunded, however, as
>> Instawallet says "claims for wallets that hold a balance greater than
>> 50 BTC will be processed on a case by case and best efforts basis."
>> 
>> Despite having little use in the real world, Bitcoin has experienced
>> a massive appreciation in value in a short period of time this year,
>> with the total monetary base now thought to be around A$1.3 billion.
>> 
>> --
>> Roger Clarke                                 http://www.rogerclarke.com/
>> 
>> Xamax Consultancy Pty Ltd      78 Sidaway St, Chapman ACT 2611 AUSTRALIA
>>                    Tel: +61 2 6288 1472, and 6288 6916
>> mailto:Roger.Clarke at xamax.com.au                http://www.xamax.com.au/
>> 
>> Visiting Professor in the Faculty of Law               University of NSW
>> Visiting Professor in Computer Science    Australian National University
>> _______________________________________________
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>> 
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-- 
Kim Holburn
IT Network & Security Consultant
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