Silk Road 2.0 hacked with over £1.6m worth of Bitcoin 'stolen'

Mod called for thief to return the stolen currency

Silk Road 2 moderator Defcon has claimed that hackers have stolen over 4,000 Bitcoins after using a transaction malleability exploit to hack into the black market.

The deep web marketplace uses an escrow system to allow buyers and sellers to trade bitcoins, with the bug that was exploited masking transfers and allowing hackers to request the same amount of BTC again and again until the coffers were cleaned out.

It is thought to be the same technique that forced bitcoin exchange Mt. Gox to halt all transactions earlier in the week. Members of the bitcoin community have said that the exploit has been known about for a while, and that the onus is on websites that handle the currency to introduce measures to stop abuse of the vulnerability.

“I should have taken MtGox and Bitstamp’s lead and disabled withdrawals as soon as the malleability issue was reported,” said Defcon in a blog post. “I was slow to respond and too skeptical of the possible issue at hand.”

Defcon has also called on the hackers to return the stolen bitcoin, writing: "Given the right flavour of influence from our community, we can only hope that he will decide to return the coins with integrity as opposed to hiding like a coward."

Usernames employed during the theft have been listed, with users of the site now setting about tracking down the people behind the robbery. Defcon encouraged individuals to "use whatever means you deem necessary to bring this person to justice."

The incident has driven down the price of BTC by around 50 points, and it is now wavering at around 600.

"No marketplace is perfect," Defcon commented. "Expect any centralized market to fail at some point. This is precisely why we must unite in the decision to decentralise."

Famous bitcoin investors include Virgin founder Richard Branson, who previously promised to accept the cryptocurrency on Virgin Galactic.

Life and Style
ebookNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Software Developer

    £27500 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...

    Recruitment Genius: IT Support Analyst

    £35000 - £45000 per annum: Recruitment Genius: They are the go-to company for ...

    Guru Careers: Graduate Software Developer / Junior Developer

    £20 - 28k + Benefits: Guru Careers: We are seeking a Graduate Software Develop...

    Recruitment Genius: Digital Web Designer

    Negotiable: Recruitment Genius: A Digital Web Designer is required to join a f...

    Day In a Page

    Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

    The 161-page dossier that exposes Fifa's dark heart

    How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
    Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

    Exclusive interview with Tripoli PM Khalifa al-Ghweil

    'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
    Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

    Raymond Chandler's Los Angeles

    How the author foretold the Californian water crisis
    Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

    Art attack

    Chinese artist who posted funny image of President Xi Jinping facing five years in prison
    Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

    Cher is the new face of Marc Jacobs

    Alexander Fury explains why designers are turning to august stars to front their lines
    Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

    'I'm climbing Ben Nevis for my daughter'

    Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
    10 best wedding gift ideas

    It's that time of year again... 10 best wedding gift ideas

    Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
    Paul Scholes column: With the Premier League over for another year, here are my end of season awards

    Paul Scholes column

    With the Premier League over for another year, here are my end of season awards
    Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

    Liverpool have seen too much tragedy to forget Heysel

    Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
    Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

    Khan’s audition for Mayweather may turn into a no-win situation

    The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
    Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

    Blundering Blair quits as Middle East peace envoy – only Israel will miss him

    For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
    Fifa corruption arrests: All hail the Feds for riding to football's rescue

    Fifa corruption arrests

    All hail the Feds for riding to football's rescue, says Ian Herbert
    Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

    The Kurdish enclave still resisting the tyranny of Assad and Isis

    In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
    How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

    How I survived Cambodia's Killing Fields

    Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
    Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

    How Stephen Mangan got his range

    Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor