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.

PROMOTED VIDEO
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Life and Style
ebooksFrom the lifespan of a slug to the distance to the Sun: answers to 500 questions from readers
News
Mock the tweet: Ukip leader Nigel Farage and comedian Frankie Boyle
peopleIt was a polite exchange of words, as you can imagine
Life and Style
fashion
Life and Style
Britons buy more than 30 million handsets each year, keeping them for an average of 18 months
tech
Arts and Entertainment
TV Presenters Ant McPartlin and Dec Donnelly. Winners of the 'Entertainment Programme' award for 'Ant and Dec's Saturday Night Takeaway'
musicAnt and Dec confirmed as hosts of next year's Brit Awards
Arts and Entertainment
Orson Welles made Citizen Kane at 25, and battled with Hollywood film studios thereafter
film
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

    Marketing Account Manager / Client Liaison Manager

    £25 - 32k DOE: Guru Careers: A digital-savvy Marketing Account Manager / Clien...

    Business Development Manager / Sales Executive

    £23-30k (DOE) + Bonus: Guru Careers: We are seeking bright Business Developmen...

    Inside Sales Manager – SaaS based solutions

    25-30k + Comms + Benefits: Sphere Digital Recruitment: A rapidly expanding tag...

    2nd Line server support

    £25000 - £30000 Per Annum: Clearwater People Solutions Ltd: Our large organisa...

    Day In a Page

    Isis in Syria: A general reveals the lack of communication with the US - and his country's awkward relationship with their allies-by-default

    A Syrian general speaks

    A senior officer of Bashar al-Assad’s regime talks to Robert Fisk about his army’s brutal struggle with Isis, in a dirty war whose challenges include widespread atrocities
    ‘A bit of a shock...’ Cambridge economist with Glasgow roots becomes Zambia’s acting President

    ‘A bit of a shock...’ Economist with Glasgow roots becomes Zambia’s acting President

    Guy Scott's predecessor, Michael Sata, died in a London hospital this week after a lengthy illness
    Fall of the Berlin Wall: History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War

    Fall of the Berlin Wall

    History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War
    How to turn your mobile phone into easy money

    Turn your mobile phone into easy money

    There are 90 million unused mobiles in the UK, which would be worth £7bn if we cashed them in, says David Crookes
    Independent writers remember their Saturday jobs:

    Independent writers remember their Saturday jobs

    "I have never regarded anything I have done in "the media" as a proper job"
    Lyricist Richard Thomas shares his 11-step recipe for creating a hit West End musical

    11-step recipe for creating a West End hit

    Richard Thomas, the lyricist behind the Jerry Springer and Anna Nicole Smith operas, explains how Bob Dylan, 'Breaking Bad' and even Noam Chomsky inspired his songbook for the new musical 'Made in Dagenham'
    Tonke Dragt's The Letter for the King has finally been translated into English ... 50 years on

    Buried treasure: The Letter for the King

    The coming-of-age tale about a boy and his mission to save a mythical kingdom has sold a million copies since it was written by an eccentric Dutchwoman in 1962. Yet until last year, no one had read it in English
    Can instilling a sense of entrepreneurship in pupils have a positive effect on their learning?

    The school that means business

    Richard Garner heads to Lancashire, where developing the 'dragons' of the future is also helping one community academy to achieve its educational goals
    10 best tablets

    The world in your pocket: 10 best tablets

    They’re thin, they’re light, you can use them for work on the move or keeping entertained
    Lutz Pfannenstiel: The goalkeeper who gave up Bayern Munich for the Crazy Gang, Bradford and a whirlwind trawl across continents

    Lutz Pfannenstiel interview

    The goalkeeper who gave up Bayern Munich for the Crazy Gang, Bradford and a whirlwind trawl across continents
    Pete Jenson: Popular Jürgen Klopp can reignite Borussia Dortmund’s season with visit to Bayern Munich

    Pete Jenson's a Different League

    Popular Klopp can reignite Dortmund’s season with visit to Bayern
    John Cantlie video proves that Isis expects victory in Kobani

    Cantlie video proves that Isis expects victory in Kobani

    The use of the British hostage demonstrates once again the militants' skill and originality in conducting a propaganda war, says Patrick Cockburn
    The killer instinct: The man who helps students spot potential murderers

    The killer instinct

    Phil Chalmers travels the US warning students how to spot possible future murderers, but can his contentious methods really stop the bloodshed?
    Clothing the gap: A new exhibition celebrates women who stood apart from the fashion herd

    Clothing the gap

    A new exhibition celebrates women who stood apart from the fashion herd
    Fall of the Berlin Wall: Goodbye to all that - the lost world beyond the Iron Curtain

    The Fall of the Berlin Wall

    Goodbye to all that - the lost world beyond the Iron Curtain