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Bitcoin

Tracking a Bitcoin Thief, Part II: Illustrating the Issue of Trust In Altcoins 46

Posted by timothy
from the sometimes-the-good-guys-win dept.
An anonymous reader writes The team over at the BITCOMSEC (Bitcoin Community Security) project released a second part to their 'Tracking a Bitcoin Thief' series in which they disclose what happened to a once-rising alternate crypto currency project that promised to place guaranteed value of its MidasCoins by backing it with actual Gold. Dealing with the reality of user compromise, the projects founder ups and runs away with all of the communities coins; cashing them out at an exchange for Bitcoins. A sobering tale of trust issues within the alternate crypto currency community. (The first part is interesting, too.)
Bitcoin

US Marshals Auctioning $20M Worth of Silk Road's Bitcoins 119

Posted by Soulskill
from the all-about-the-bitjamins dept.
coondoggie writes: The U.S. Marshals office says it will auction off almost 50,000 bitcoins (about $20 million worth) seized from alleged Silk Road creator Ross Ulbricht. The auction, which is the second sale of Silk Road's bitcoin collection, will take place during a 6-hour period on Dec. 4 from 8:00 a.m. until 2:00 p.m. EST. Bids will be accepted by email from pre-registered bidders only, the U.S. Marshals office said. In June more than $17 million in bitcoins seized from the Silk Road take-down were auctioned off.
Bitcoin

Entrepreneur Injects Bitcoin Wallets Into Hands 77

Posted by timothy
from the heirs-are-not-amused dept.
wiredmikey writes A Dutch entrepreneur has had two microchips containing Bitcoin injected into his hands to help him make contactless payments. The chips, enclosed in a 2mm by 12mm capsule of "biocompatible" glass, were injected using a special syringe and can communicate with devices such as Android smartphones or tablets via NFC. "What's stored on the microchips should be seen as a savings account rather than a current account," Martijn Wismeijer, co-founder of MrBitcoin said. "The payment device remains the smartphone, but you transfer funds from the chips." The chips are available on the Internet, sold with a syringe for $99, but Wismeijer suggested individuals should find a specialist to handle the injection to avoid infections.
Privacy

Tor Project Mulls How Feds Took Down Hidden Websites 135

Posted by Soulskill
from the inside-job dept.
HughPickens.com writes: Jeremy Kirk writes at PC World that in the aftermath of U.S. and European law enforcement shutting down more than 400 websites (including Silk Road 2.0) which used technology that hides their true IP addresses, Tor users are asking: How did they locate the hidden services? "The first and most obvious explanation is that the operators of these hidden services failed to use adequate operational security," writes Andrew Lewman, the Tor project's executive director. For example, there are reports of one of the websites being infiltrated by undercover agents and one affidavit states various operational security errors." Another explanation is exploitation of common web bugs like SQL injections or RFIs (remote file inclusions). Many of those websites were likely quickly-coded e-shops with a big attack surface. Exploitable bugs in web applications are a common problem says Lewman adding that there are also ways to link transactions and deanonymize Bitcoin clients even if they use Tor. "Maybe the seized hidden services were running Bitcoin clients themselves and were victims of similar attacks."

However the number of takedowns and the fact that Tor relays were seized could also mean that the Tor network was attacked to reveal the location of those hidden services. "Over the past few years, researchers have discovered various attacks on the Tor network. We've implemented some defenses against these attacks (PDF), but these defenses do not solve all known issues and there may even be attacks unknown to us." Another possible Tor attack vector could be the Guard Discovery attack. The guard node is the only node in the whole network that knows the actual IP address of the hidden service so if the attacker manages to compromise the guard node or somehow obtain access to it, she can launch a traffic confirmation attack to learn the identity of the hidden service. "We've been discussing various solutions to the guard discovery attack for the past many months but it's not an easy problem to fix properly. Help and feedback on the proposed designs is appreciated."

According to Lewman, the task of hiding the location of low-latency web services is a very hard problem and we still don't know how to do it correctly. It seems that there are various issues that none of the current anonymous publishing designs have really solved. "In a way, it's even surprising that hidden services have survived so far. The attention they have received is minimal compared to their social value and compared to the size and determination of their adversaries."
The Courts

Court Order: Butterfly Labs Bitcoins To Be Sold 66

Posted by timothy
from the now-there's-a-flap dept.
MrBingoBoingo writes In a new development in the case against Butterfly Labs, the court overseeing the case has ordered bitcoins held by Butterfly Labs to be turned over to the court-appointed temporary receiver. The order also gives the receiver authorization to convert the bitcoins "to cash on a systematic and reasoned basis." The justification for this measure is at least to ostensibly create reserves with which refunds for Butterfly Labs' customers may be paid.
GNOME

Trisquel 7 Released 39

Posted by Soulskill
from the lucky-seven dept.
An anonymous reader writes: Trisquel 7.0 Belenos has been released. Trisquel is a "free as in freedom" GNU/Linux distribution endorsed by the FSF. This latest release includes Linux-libre 3.13, GNOME 3.12, Abrowser 33 (based on Firefox), the Electrum Bitcoin client and many more new features and upgrades. Trisquel 7.0 will be supported until 2019.

Interested users can check out the screenshots and download the latest release. The project also accepts donations.
Crime

Tracking a Bitcoin Thief 64

Posted by samzenpus
from the naming-names dept.
An anonymous reader writes A small group of researchers were able to publish an investigative report on the hacking of a popular Bitcoin exchange earlier this year by the name of CryptoRush.in. Close to a million dollars stolen in crypto currency lead the group to discover evidence, track down the attacker and put together a timeline of what exactly happened. A captivating read for a community desensitized by thefts, hackings and lack of reporting. With pictures, and logs to prove it all.
Bitcoin

The Great Robocoin Rip-off 117

Posted by Soulskill
from the expectation-versus-reality dept.
FhnuZoag writes: Last year, Andrew Wilkinson, founder of MetaLab, bought a Robocoin Bitcoin ATM, figuring it would be a fun little side project and a good way to help move Bitcoin forward. It did not quite turn out that way. He has now written a timeline of the 10-month, $25,000(CAD) struggle. In short: there was a massive shipping delay, a $2,000 charge to clear customs, no knowledge base, unhelpful support, and the ATM itself flat out didn't work.
Bitcoin

Bill Gates: Bitcoin Is 'Better Than Currency' 130

Posted by Soulskill
from the all-about-the-digital-benjamins dept.
An anonymous reader sends this excerpt from Entrepreneur.com: After long remaining mostly mum on Bitcoin, Microsoft's legendary co-founder Bill Gates has spoken. At the Sibos 2014 financial-services industry conference in Boston, America's richest man just threw his weight behind the controversial cryptocash. Well, at least as a low-cost payments solution. ... "Bitcoin is exciting because it shows how cheap it can be," he told Erik Schatzker during a Bloomberg TV's Smart Street show interview yesterday (video). "Bitcoin is better than currency in that you don't have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient." ... While he seems relatively bullish on how inexpensive transacting in Bitcoin can be, Gates isn't singing the praises of its anonymity. The billionaire alluded in an oblique, somewhat rambling fashion to some of the more nefarious anonymous uses associated with Bitcoin.
Bitcoin

PayPal Integrates Bitcoin Processors BitPay, Coinbase and GoCoin 56

Posted by Soulskill
from the betting-on-bits dept.
An anonymous reader writes: PayPal today announced partnerships with three major Bitcoin payment processors: BitPay, Coinbase and GoCoin. The eBay-owned company wants to help digital goods merchants accept Bitcoin payments, although it is starting with those located in the U.S. and Canada first ("We are considering expanding to other markets," a PayPal spokesperson told TNW. "Stay tuned.")

PayPal says it chose to integrate the third-party functionality directly in the PayPal Payments Hub because the aforementioned trio already offers its customers protections when dealing with the virtual currency. The company envisions anything that can be obtained digitally, such as video games and music, being sold in Bitcoin.
Bitcoin

Paypal Jumps Into Bitcoin With Both Feet 134

Posted by timothy
from the in-for-penny dept.
retroworks (652802) writes The BBC, the Wall Street Journal, Bloomberg, Forbes and several other business sites are buzzing with Paypal's incorporation of Bitcoin transactions. According to Wired, Paypal will be "the best thing ever to happen to Bitcoin." Paypal-owned Braintree not only brings 150 million active users in close contact with Bitcoin, it signals "mainstreaming" similar to cell phone app banking, perceived as experimental just a few years ago.
Bitcoin

Satoshi Nakamoto's Email Address Compromised 65

Posted by Soulskill
from the or-as-he-likes-to-be-called,-bitcoin-batman dept.
ASDFnz writes: Satoshi Nakamoto, the respected (and currently missing) inventor of Bitcoin, seems to have had his email address compromised by an unknown agent. Satoshi exclusively used one email address when he was active in the Bitcoin community: satoshin@gmx.com. If you have a look at the original Bitcoin whitepaper (PDF), you will find it there at the top just under the title. He also usually signed his correspondence with his PGP signature. Earlier today, the head administrator of Bitcointalk, Theymos, received an email from Satoshi's email address that appeared to originate from GMX's servers. Theymos made a post on the Bitcointalk forums saying he had received an email from the address without Satoshi's PGP signature. Later, the unknown agent posted to other Satoshi accounts.
Bitcoin

The Apache Software Foundation Now Accepting BitCoin For Donations 67

Posted by samzenpus
from the a-different-way-to-give dept.
rbowen writes The Apache Software Foundation is the latest not-for-profit organization to accept bitcoin donations, as pointed out by a user on the Bitcoin subreddit. The organization is well known for their catalog of open-source software, including the ubiquitous Apache web server, Hadoop, Tomcat, Cassandra, and about 150 other projects. Users in the community have been eager to support their efforts using digital currency for quite a while. The Foundation accepts donations in many different forms: Amazon, PayPal, and they'll even accept donated cars. On their contribution page the Apache Software Foundation has published a bitcoin address and QR code.
Bitcoin

Hal Finney, PGP and Bitcoin Pioneer, Dies At 58 40

Posted by timothy
from the that's-a-legacy dept.
New submitter brokenin2 writes Hal Finney, the number two programmer for PGP and the first person to receive a Bitcoin transaction, has passed away. From the article on Coindesk: "Shortly after collaborating with Nakamoto on early bitcoin code in 2009, Finney announced he was suffering from ALS. Increasing paralysis, which eventually became near-total, forced him to retire from work in early 2011."
Bitcoin

Euro Bank Santander Commissions Study On Bitcoin's Impact On Banking 50

Posted by timothy
from the first-they-commission-a-story-about-you dept.
First time accepted submitter Nikkos (544004) writes Digital currency news website HashReport broke the news Monday that European megabank Santander has commissioned a study to "Analyze the impact of bitcoin and other cryptocurrencies on banks and devise a strategic course of action." The study is being facilitated as a challenge through Yegii, an 'Insight Network' founded by Trond Undheim. Undheim is also a Senior Lecturer at MIT Sloan School of Management, as well as Managing Director at Tautec Consulting. The challenge was initiated by Julio Faura — Head of Corporate development for Banco Santander. According to Dr. Undheim, Faura was "looking for additional outside perspective onto the topic of Bitcoin. While acquiring consulting services from top tier consulting firms can be exciting, he thought that an outsider, multidisciplinary perspective, would be particularly helpful."
Bitcoin

Early Bitcoin User Interviewed By Federal Officers 92

Posted by Unknown Lamer
from the just-wasting-electricity-officer dept.
MrBingoBoingo (3481277) writes Recently a Bitcoin user reports being interviewed over their past use of a now defunct exchange service by agents from the FBI and Treasury Department. This encounter raises concerns that earlier Bitcoin users who entered the space inocuously and without ties to Dark Markets or The Silk Road might need to prepare for Law Enforcement questioning about their early Bitcoin related activities.
Bitcoin

Are Altcoins Undermining Bitcoin's Credibility? 267

Posted by samzenpus
from the least-of-your-worries dept.
An anonymous reader writes The editor of a Bitcoin advocacy site believes the proliferation of altcoins (cryptocurrencies other than Bitcoin) is harming Bitcoin's long-term potential as an alternative to traditional currencies. Posting at BadBitcoin.org, a site that seeks to expose online scams that target Bitcoin users, the pseudonymous ViK compares altcoins, including the Internet meme inspired Dogecoin, to a pump-and-dump scheme where developers create their own version of the Bitcoin wallet and blockchain and then "pre-mine" or generate a significant number of cryptocurrency units before the altcoin's official release. Later, when their value has risen, the pre-mined altcoins are exchanged for Bitcoin or in some cases converted directly to cash. While critics of cryptocurrencies in general might find ViK's comments about the altcoin "tulip" mania ironic, the self-confessed Bitcoin fan is nevertheless calling for an altcoin boycott: "The easiest way to stop them is to not participate. We all know that they only have one purpose, and that is to make Bitcoin for the so called developers."
Bitcoin

Network Hijacker Steals $83,000 In Bitcoin 101

Posted by Unknown Lamer
from the rerouting-the-internet-for-fun-and-profit dept.
An anonymous reader writes with news that bogus BGP announcements can be used to hijack work done by cryptocurrency mining pools. Quoting El Reg: Researchers at Dell's SecureWorks Counter Threat Unit (CTU) have identified an exploit that can be used to steal cryptocurrency from mining pools — and they claim that at least one unknown miscreant has already used the technique to pilfer tens of thousands of dollars in digital cash. The heist was achieved by using bogus Border Gateway Protocol (BGP) broadcasts to hijack networks belonging to multiple large hosting companies, including Amazon, Digital Ocean, and OVH, among others. After sending the fake BGP updates miners unknowingly contributed work to the attackers' pools.
The Almighty Buck

Ecuador To Forge Ahead With State-Backed Digital Currency 85

Posted by samzenpus
from the lets-make-money dept.
First time accepted submitter jaeztheangel writes Ecuador's government has approved plans to start a new Digital Currency backed by the state. With defaults in recent history, and dwindling oil reserves it will be interesting to see how this decision turns out. From the article: "Congress last month approved legislation to start a digital currency for use alongside the U.S. dollar, the official tender in Ecuador. Once signed into law, the country will begin using the as-yet-unnamed currency as soon as October. A monetary authority will be established to regulate the money, which will be backed by 'liquid assets.'”
Bitcoin

Inside BitFury's 20 Megawatt Bitcoin Mine 195

Posted by Unknown Lamer
from the fools-and-their-megawatts dept.
1sockchuck (826398) writes Bitcoin hardware vendor BitFury has opened a 20-megawatt data center to expand its cloud mining operations. The hashing center in the Republic of Georgia is filled with long rows of racks packed with specialized Bitcoin mining rigs powered by ASICs. It's the latest example of the Bitcoin industry's development of high-density, low-budget mining facilities optimized for rapid changes in hardware and economics. It also illustrates how ASIC makers are now expanding their focus from retail sales to their in-house operations as Bitcoin mining becomes industrialized.

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