661
Silk Road Discussion / Re: Agora runs horribly....
« on: February 16, 2014, 07:55:19 am »
To be fair, they had a bit of a rush to their market following the news break.
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662
Silk Road Discussion / Re: The Plan for Moving Forward
« on: February 16, 2014, 03:17:12 am »Defcon, the update is appreciated.. and the FE market is tempting to continue to vend in...
but.. can't you close registrations to new vendors or maybe allow some type of deeper confirmation in order to vend?
if they dont close the vender registration then all buyers must assume vendors who popped up after this are scammers, no excuses.
Vendor registration will be closed when the market re-opens.
663
Silk Road Discussion / Re: Full Disclosure
« on: February 16, 2014, 01:55:13 am »Clu, i also have a question, i feel transparency is necesarry right now but i understand you cant give EXACT details, but i want to know hat Hin, told you to prove to you his guys are legit, now like i said i dont expect for you to copy paste, but if he doxxed you you can atleast say that. you know, i feel this will help with the "trust" issue, i am tired of letting you guys give me half answers. i will be calm and cool but first i want the answers that i feel my lost money has bought me. you understand? i like this place and respect the cause, but i want some answers.
I'm really curious to hear what he said to you also
i like my admin like like my meth, transparent.
lol true that. After reading through all of the madness I feel like Clu got a lot of undeserved hate from a lot of people but seems to be the only one keeping in contact with everyones posts and being honest.
Will be interesting to hear what he says about that post
i agree, i like clu, when his name was getting tossed around, it was worse than anything else. but lets fucking get some answers Clu buddy, pal. answer my question.
I do not like posting this publicly. I have been watching you all ask this question and I needed to take some time to respond appropriately.
Hiniguel presented me with a few various pieces of vague data about myself that were accurate enough to illicit a panic attack. I do not feel I am in danger. I truly wish that I had not been a target of his in the first place, but it is done now. Hiniguel has only good intentions and was simply trying to find out who may have been at fault. He followed a path that lead to me, but it was a false one. I do not know what lead him on that path, but again...its done now.
I say this because I don't believe I was fully doxed. As always, I am as safe as anyone else here.
664
Silk Road Discussion / Re: Silk Road was robbed by [redacted]
« on: February 16, 2014, 12:49:30 am »
I don't know if you are attempting to be sarcastic, but everyone can see when a post is edited...
Yours wasn't. I will edit mine to you show you how that looks.
Edited for show.
Yours wasn't. I will edit mine to you show you how that looks.
Edited for show.
665
Silk Road Discussion / Re: Full Disclosure
« on: February 16, 2014, 12:46:12 am »I am catching up on a lot of communication. Can you specifically ask a full question? I have not read Hin's post yet.
I believe what everyone wants is:
Was a staff member involved in the attack, was it Oracle, is Oracle even staff?
I want to know this too obviously...
666
Silk Road Discussion / Re: To the moderators unaware of the scam- here's the place to clear your names
« on: February 15, 2014, 10:37:45 pm »
This is ridiculous.
1. Mods do not have server access.
2. Mods did not even have access to carry out this attack.
3. We have limited control over even the forum. It is our job to promote Silk Road. Prior to this attack, I made a very embarrassing post in hindsight pushing the security of the market. The timing could not have been worse and this attack vector was foolishly missed. What I said cannot be un-done. I'm sorry.
4. Every user should decide what is best for them at this point. We will re-open the market when it is ready, but if you feel more secure elsewhere, please go there. We have failed you. I have faith that the Silk Road will come back from this. People can decide to use it again or not. I do not blame them if they don't, however. Please just keep yourselves safe.
5. Whats with the "(I fucking hate you)"? What have I done personally to upset you?
1. Mods do not have server access.
2. Mods did not even have access to carry out this attack.
3. We have limited control over even the forum. It is our job to promote Silk Road. Prior to this attack, I made a very embarrassing post in hindsight pushing the security of the market. The timing could not have been worse and this attack vector was foolishly missed. What I said cannot be un-done. I'm sorry.
4. Every user should decide what is best for them at this point. We will re-open the market when it is ready, but if you feel more secure elsewhere, please go there. We have failed you. I have faith that the Silk Road will come back from this. People can decide to use it again or not. I do not blame them if they don't, however. Please just keep yourselves safe.
5. Whats with the "(I fucking hate you)"? What have I done personally to upset you?
667
Silk Road Discussion / Re: The Oracle is wrong. The Oracle is the staff member that is behind this.
« on: February 15, 2014, 09:11:06 pm »
I just read through the pages of oracles posts.
He never tried to publicly "latch blame" onto me and in-fact both parties have stated multiple times that I had nothing to do with this attack. Again, I am not defending anyone, just stating facts.
He never tried to publicly "latch blame" onto me and in-fact both parties have stated multiple times that I had nothing to do with this attack. Again, I am not defending anyone, just stating facts.
668
Silk Road Discussion / Re: The Oracle is wrong. The Oracle is the staff member that is behind this.
« on: February 15, 2014, 08:47:04 pm »All - there is an archive of SR1's forum (all posts, threads) out there somewhere. The COMPLETE forum (not the one scrubbed of all of Stexo's posts either after SR1 went down or by Stexo himself). Somebody please post the link up here ASAP. Once that's done, I will provide something delicious for all those who want to know a little about the thief.
DoctorClu - can you address the OP's claims that I've "been publicly tryign to latch blame on to you" please? I would appreciate it.
Defcon - I'm not publicly asking you get in touch with me, or I will assume this thread has a "green light" and I will be forced to talk about my very initimate knowledge of events and interactions with you publicly, which I had agreed I would never do out of principle. I won't stand for being accused of this bullshit under any circumstances.. if that means spilling "all the beans", then so be it.
I have not been presented with any evidence to suggest you or anyone lead a path to me. Not even sure why they would. The only reason I said "Be Afraid", was because of what Hiniguel presented to me personally in regards to what his people are capable of.
At this point, I will not take sides. I have no bloody idea what is going on with all of this. It isn't out of anger directed at either party, but because I truly do not know what to think anymore...
669
Silk Road Discussion / IMPORTANT: Humbled and Furious
« on: February 15, 2014, 07:54:25 pm »
Reposting this in it's entirety due to the issue with the forum filters:
-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512
I am sweating as I write this.
Christmas brought grave news. I cannot adequately express how deeply honored I was by your unconditional support of my staff.
I do not expect the same reaction to today's revelations. This movement is built on integrity, and I feel obligated to be forthright with you.
I held myself to a high standard as your leader, yet now I must utter words all too familiar to this scarred community:
We have been hacked.
Nobody is in danger, no information has been leaked, and server access was never obtained by the attacker.
Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as "transaction malleability" to repeatedly withdraw coins from our system until it was completely empty.
Despite our hardening and pentesting procedures, this attack vector was outside of penetration testing scope due to being rooted in the Bitcoin protocol itself.
This attack hit us at the worst possible time. We were planning on re-launching the new auto-finalize and Dispute Center this past weekend, and our projections of order finalization volume indicated that we would need the community's full balance in hot storage.
In retrospect this was incredibly foolish, and I take full responsibility for this decision.
I have failed you as a leader, and am completely devastated by today's discoveries. I should have taken MtGox and Bitstamp's lead and disabled withdrawals as soon as the malleability issue was reported. I was slow to respond and too skeptical of the possible issue at hand. It is a crushing blow. I cannot find the words to express how deeply I want this movement to be safe from the very threats I just watched materialize during my watch.
I've included transaction logs at the bottom of this message. Review the vendor's dishonest actions and use whatever means you deem necessary to bring this person to justice. More details will emerge as we continue to investigate.
Given the right flavor 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.
It takes the integrity of all of us to push this movement forward. Whoever you are, you still have a chance to act in the interest of helping this community. Keep a percentage, return the rest. Don't walk away with your fellow freedom fighters' coins. DPR2 returned the cold storage. I didn't run with the gold. But two people alone cannot move us forward. It takes an entire community committing to integrity - and though this crushing blow will not stop us, it sure is a testament to how greedy some bastards truly are.
Being a part of this movement might be the most defining thing you do with your entire life.
Don't trade that for greed, comrades.
I will fight here by your side, even the greedy bastards amongst us.
This community has suffered great financial loss over and over again, and I am devastated that it has happened again under my watch.
Hindsight is already suggesting dozens of ways this could have been prevented, but we must march onward.
The only way to reverse a community's greed is through generosity. Our true character is revealed during trying times.
If this financial hardship places you at risk of physical harm, contact me directly and I will do my best to help you with my remaining personal funds.
- ----------------
Now what.
- ----------------
Never again store your escrow bitcoins on a server.
Silk Road will never again be a centralized escrow storage.
This week has shown the collateral damage we can cause by being a huge target and failing in just one unforeseen area.
I am now fully convinced that no hosted escrow service is safe.
If I cannot trust myself to keep a hosted escrow solution safe, I cannot trust anyone.
Multi-signature transactions are the only way this community will be protected long-term.
I am aggressively tasking our devs on building out multi-sig support for commonly-used bitcoin clients. Expect a generous bounty if you have the skill to implement this.
- -----------------
Until then.
- -----------------
1. We will never again allow ourselves to be a single point of failure. We will never again host your Escrow wallets.
2. Vendor registration is closed while we regroup.
3. All listings on Silk Road are now No-Escrow (Finalize-Early) for 1-2 months while we implement multi-signature transactions and lobby for mainstream Bitcoin client multi-sig support.
4. All unshipped orders have been cancelled.
5. Vendors may link to other marketplaces on a trail basis until we launch multi-sig, then we will re-evaluate based on community input. We do not want to be a centralized point of failure, but we also do not want to lead our buyers into dangerous waters.
6. From this point forward DO NOT trust markets with centralized escrow. Use multi-signature transactions whenever possible, with trusted third parties as escrow providers.
Everything will be offline for 24-48 hours to minimize variables as we continue to investigate. The evidence we have below will be expanded based on our findings.
- ------------------
No marketplace is perfect. Expect any centralized market to fail at some point. This is precisely why we must unite in the decision to decentralize.
We are relieved that our security procedures protected user identities, and that no servers were compromised. This was not a worst-case scenario: nobody will be getting arrested from this. Financial loss is terrible, but will not put all of us behind bars.
The details we have on the hacker are below. Stop at nothing to bring this person to your own definition of justice.
Humbled and furious,
Defcon
- ------------------
# Attacker Intel as of 2014-02-13 18:00:00 UTC
We normally do not doxx anyone, and hold user information sacred. But this is an extreme situation affecting our entire community, and all three users who have exploited this vulnerability are very much at risk until they approach us directly to assist with any information.
Do not reveal any details of the attack. This will jeopardize your reward. Contact us directly.
If anyone has purchased or sold to these usernames, expect generous bounties for any information you can contribute which leads to identification.
# Attacker 1: (Responsible for 95% of theft)
Suspected French, responsible for vast majority of the thefts. Used the following six vendor accounts to order from each other, to find and exploit the vulnerability aggressively.
## Usernames used:
narco93
ketama
riccola
germancoke
napolicoke
smokinglife
Transactions listed at bottom of this file. Finding Attacker 1 is top priority.
# Attacker 2: (Responsible for ~2.5% of theft, using same methods towards end of attack lifecycle, likely knows Attacker 1)
LethalWeapon - Australia - "stumbled upon" large amount of BTC
# Attacker 3: (Responsible for ~2.5% of theft, using same methods towards end of attack lifecycle, likely knows Attacker 1)
mrkermit - Australia
# Theft Withdrawal Transactions and historical withdrawals by Attacker 1
address,txid_cleaned
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,c0d1f825af3d2b2267a2b419b13546c8b543c4b808473fbae4fc66079fe812c3
1LgdR7EdjuUyBkSgLXS7K5Viur4gPbcMMq,c48cd35a4e5bdcc8e3bfaa7f5c75c69c7e029bc7f493d13e8cde4dfb612eb6f3
12HujhGQqPMvb9Jeip5uSEzcUtuLKf31wd,a0deba5e29d8c347a597a4093ecab876a3a62f6da0c59d5b0e03ef47b0b68b53
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,bd68169c4a7ff017041595aa55f825d437f776e4574286b736aaef1950afe6a7
16unhdR3bctU2b5zTcek1dT4iiaWDKPHkE,5e79f7010d40df0496ce69c805f2d8c2271994ce9f33b3e3ff26d5708c9731fc
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,35819f2f65bf49c95618100af6c7084c64b39a925693120e1bef2feef2596d8a
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,e4be96c5cf64e31817cf6f2fdbb6c825e145ded397a5203804cca57f4737523a
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,ae0b814a44e8fa407803857a431279ea94141aa67a7c068ec6eed36321bf889f
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,521b551bfbd518921547fd85d1c6a824e214dee573219199f24b6499300839be
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,9ceb3828c75025ba4f5ee0aa5ed5508bad86ffc85dfb7e9b32a78f29f9f58d15
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,32d562acbae9d385ed8e644d3935e59b758689504911a8c7f0a73be04c4d4364
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,72336d6e17aad8e45c066290875b4fbdf9ba4a384d3254d5befccc46c8d75229
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,823913b2b7533f4cd125caa14b009ca85c01d88d3281cf778aa041fa6096b7ab
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,2b38f0dc86781cf9ed7e20784b87c757850377cd369ccd995f6ed90dfe695694
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,bd79a679ac6155db7032c8404f443f52b95602cecb1dafeba7bca37633ac6ccc
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,c248f7c64aab8520ad774af1052fec06f44e0788a01ddb20b0fb6036e763f28d
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,ffe36800ece5ad7714a747b57fac972908f27ed82bf363edf08e479a0a1d4a71
14UKFvvSH7i1mWdV5yh1Qke9iTVw5LyGfL,2f9989918c83f91cc434a4ccee990e4b046b73e871fc7d1d8af8ae697837af0e
15k24ojcgUyZUWYP47ZSLn9UiUpmBmCiE1,3c9d81a386b661d521312c84de4f4b0e48f7d43a128ded0c493ff3ad16205a0f
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,0f1a8a0258e6a8b0860f7ba04a81c31077e029b7a5ac82b6631c5397b7b7a0d6
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,582b8663a91adc90d931ff1536802fa6d2422176230b5664b636826be63bf049
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,12fd1f14c55bfc3bd07d644355f047d8237855ec3e5a6434254cb021e8a0fcf3
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,82cdc3b2dedfbfaad5a5c8d89a775af2df535ebe9e3d8602633f9976ad0abdf5
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,40608b6f40c8fdb5c8f973f1e0b6657aadf93acfa3b4bdbf19c6b86b911678f0
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,702a7e504826aae1b0ba093df0f575ca78ecb459b2ec3f5dcf65dcb96b2ddda5
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,d90755ce8650c61f991b11c60afac570bb0e22370236cad655721cd355157535
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,35d4e048ccf110e46a2f4b3f7d76b23d60adf5acfc2019c967c2d95cd5423e05
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,03803508ee7b1808e151022aed04e48c2895229b15d618ff75b2b77a7ae8b74d
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,d60ff8fc9c2ae6f198af03cb7a14e717a9741f23be87ee200c057c5292f95ae3
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,a66c5fc99a356375676989aeed81910f448ace1c9a8e07a1e62b5a70ca4530b2
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,4957eaa2c823eac70185356f9a361b357e35f4f2ed1f2732aa0790ccdb6b3c5d
1CiP8nogPqGGg9e3sG2pGFYW8VP1ZYS7Rg,cfeaa0052f9fd65f0c8fba12adc6ca93f9fef256ba8fcd614628ead404a6016b
1CiP8nogPqGGg9e3sG2pGFYW8VP1ZYS7Rg,2112c411249e3c2efdc3dff4a29d2e7ccc934a82bec3e456b317f0497b07e38b
1CiP8nogPqGGg9e3sG2pGFYW8VP1ZYS7Rg,684b03ddedb96f2eb56f748315a0f14f6a580492384d119eb36c7039fcecd295
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,febbb2b5e2727d13df1eb69185e55b02c227171b44b5509c641f9f994842571a
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,fad058d8786bc446fe45b88f24d8f4459c14feff456eea794f1266339d44f4f4
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,70f50e0b1111dc55697e452421e3d4f604549d257c1783f12b299dde4290893d
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,6dc39b2cca7eabfe2cf51edd80c61b59cd6b53231627057981abbd32f2e93483
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,d3d3da7b2bfa128f5e4e3589d0241b56d722b157417cde2be7ade4570f9853ef
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,f748e0a3f490581006c155280a9823fb60373a6827d26fb2ee956e90b02d159d
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,58dc8afd9aa65be7001f3acbccaef79d239b7dc6c34f749d5befaa9634768c5f
18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,c103d2d867a7f966a208ca5f167ac2fb532407e35ddceb2438f63b08b1528a5a
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,f6c0c211d3b10981dd4b687aeaa4e525732da6452285e2240338e5e5b4062cde
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,2569598e74476739003ef851d6281c10a23ca0991fe084043f2133591c342bed
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,cc601ebd8c2b5c441e25e63927aba6cf159f5cc53c0ea1f0a77fa2636c10fde3
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,d119a2e4523d19cf72392261ec5c05e2a50302eb598741803f71ee9b36199936
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,d38de56db2adea3d1ddce8cee48e1a61c8cc00300b038f9babbf7db6b7f02431
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,064a1fcf9fe623b85e42cea315e98016e77de4c4ef269a195012e5dd594414fb
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,b5ac560a5f768d76fcd4c91e0969e78eb9e51d78394cba2e994301552d4031e8
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,c46dd9616ed32ffcbad0349d4dcba67990a6e8f48703ad89739fba4ab45aaffc
16MrSPHa7VyijtLzGR4hW5u36gEeM3MvY3,bd90cab04b4ed3c8abc11f2103f0fc65a24d9c60d91de721500e35edd5e185c7
1BddfHQ5Cpbj8qJbCSG7QbGWCcPwsnCb7c,d6a2b0f385c42f5d2a588afc773bffd1438d6b78c5c1c49fb408bd9ca0b9a5a5
1BddfHQ5Cpbj8qJbCSG7QbGWCcPwsnCb7c,d4c6342ff1f6d00c5cb768c1fc66549063d12d127d4b8d3eb1f658adf6332ee0
1BddfHQ5Cpbj8qJbCSG7QbGWCcPwsnCb7c,c6108687994df8098e167219d44b1a6b10f24394f913c9258f4800998fbe6aa5
1BddfHQ5Cpbj8qJbCSG7QbGWCcPwsnCb7c,067d5ef6708915d10723b0adf22d49eb39caf8c7e7eff9b7c4d53fb9fe2106c9
1BddfHQ5Cpbj8qJbCSG7QbGWCcPwsnCb7c,245d4a6b6866556ffef7d0112b22c4b44ed1be96a4f0080cd325d6405ab8c3a7
12ch7R9XfVHqNKgfZquKh9op6jX6roJEpq,fac18f0943e5bc486bd8e8b8538186bd564f8a47fd7e1ecf78e8959b568a9cce
12ch7R9XfVHqNKgfZquKh9op6jX6roJEpq,5ae0cbcbb93a41fbf0e4015122327980e7ca38f3d37055b99f5f7f036900f835
12ch7R9XfVHqNKgfZquKh9op6jX6roJEpq,ce5c3bf40c5f7d7d6d087765820c14b6dfd94cdf7e9f708dbf72c823dba2d699
12ch7R9XfVHqNKgfZquKh9op6jX6roJEpq,628dd7ee46fa6f545326054546a76f39b30191a3ebbf083360305a4b5eb53f1c
12ch7R9XfVHqNKgfZquKh9op6jX6roJEpq,0b827da2e434c25b1a6f544bd4e632bb116c8d02afb9a9589357b421633a1c38
1C8g81dNnr3hB2oNrndVqr3S7MT4WEA6QW,6014ad985fb482af419ca791e3ec51b447c6e3e90c5e65c1c591e17a3525a13e
1ParuUdUSA8d67gbEB4Kg3KRKkAhaCSvJL,417784edade215ef71adf5cb9fa49c124453c79669138d23a2178d7ce4be2759
1ParuUdUSA8d67gbEB4Kg3KRKkAhaCSvJL,30a959ab3f7e9b664772a3c938312e0738c46482895309c66110df11e0dde7b8
1ParuUdUSA8d67gbEB4Kg3KRKkAhaCSvJL,56b2a9cea6fd9de6070971823d149fc5855eb71a12095ec7163c0cac790c5904
1EJsQd9UkxhZgFe1VK7BrRaK5xkdpcA87Z,82afb7f42af741e2fc1f143030249659edfae79921aac740a1a8facf41563f0d
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-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512
I am sweating as I write this.
Christmas brought grave news. I cannot adequately express how deeply honored I was by your unconditional support of my staff.
I do not expect the same reaction to today's revelations. This movement is built on integrity, and I feel obligated to be forthright with you.
I held myself to a high standard as your leader, yet now I must utter words all too familiar to this scarred community:
We have been hacked.
Nobody is in danger, no information has been leaked, and server access was never obtained by the attacker.
Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as "transaction malleability" to repeatedly withdraw coins from our system until it was completely empty.
Despite our hardening and pentesting procedures, this attack vector was outside of penetration testing scope due to being rooted in the Bitcoin protocol itself.
This attack hit us at the worst possible time. We were planning on re-launching the new auto-finalize and Dispute Center this past weekend, and our projections of order finalization volume indicated that we would need the community's full balance in hot storage.
In retrospect this was incredibly foolish, and I take full responsibility for this decision.
I have failed you as a leader, and am completely devastated by today's discoveries. I should have taken MtGox and Bitstamp's lead and disabled withdrawals as soon as the malleability issue was reported. I was slow to respond and too skeptical of the possible issue at hand. It is a crushing blow. I cannot find the words to express how deeply I want this movement to be safe from the very threats I just watched materialize during my watch.
I've included transaction logs at the bottom of this message. Review the vendor's dishonest actions and use whatever means you deem necessary to bring this person to justice. More details will emerge as we continue to investigate.
Given the right flavor 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.
It takes the integrity of all of us to push this movement forward. Whoever you are, you still have a chance to act in the interest of helping this community. Keep a percentage, return the rest. Don't walk away with your fellow freedom fighters' coins. DPR2 returned the cold storage. I didn't run with the gold. But two people alone cannot move us forward. It takes an entire community committing to integrity - and though this crushing blow will not stop us, it sure is a testament to how greedy some bastards truly are.
Being a part of this movement might be the most defining thing you do with your entire life.
Don't trade that for greed, comrades.
I will fight here by your side, even the greedy bastards amongst us.
This community has suffered great financial loss over and over again, and I am devastated that it has happened again under my watch.
Hindsight is already suggesting dozens of ways this could have been prevented, but we must march onward.
The only way to reverse a community's greed is through generosity. Our true character is revealed during trying times.
If this financial hardship places you at risk of physical harm, contact me directly and I will do my best to help you with my remaining personal funds.
- ----------------
Now what.
- ----------------
Never again store your escrow bitcoins on a server.
Silk Road will never again be a centralized escrow storage.
This week has shown the collateral damage we can cause by being a huge target and failing in just one unforeseen area.
I am now fully convinced that no hosted escrow service is safe.
If I cannot trust myself to keep a hosted escrow solution safe, I cannot trust anyone.
Multi-signature transactions are the only way this community will be protected long-term.
I am aggressively tasking our devs on building out multi-sig support for commonly-used bitcoin clients. Expect a generous bounty if you have the skill to implement this.
- -----------------
Until then.
- -----------------
1. We will never again allow ourselves to be a single point of failure. We will never again host your Escrow wallets.
2. Vendor registration is closed while we regroup.
3. All listings on Silk Road are now No-Escrow (Finalize-Early) for 1-2 months while we implement multi-signature transactions and lobby for mainstream Bitcoin client multi-sig support.
4. All unshipped orders have been cancelled.
5. Vendors may link to other marketplaces on a trail basis until we launch multi-sig, then we will re-evaluate based on community input. We do not want to be a centralized point of failure, but we also do not want to lead our buyers into dangerous waters.
6. From this point forward DO NOT trust markets with centralized escrow. Use multi-signature transactions whenever possible, with trusted third parties as escrow providers.
Everything will be offline for 24-48 hours to minimize variables as we continue to investigate. The evidence we have below will be expanded based on our findings.
- ------------------
No marketplace is perfect. Expect any centralized market to fail at some point. This is precisely why we must unite in the decision to decentralize.
We are relieved that our security procedures protected user identities, and that no servers were compromised. This was not a worst-case scenario: nobody will be getting arrested from this. Financial loss is terrible, but will not put all of us behind bars.
The details we have on the hacker are below. Stop at nothing to bring this person to your own definition of justice.
Humbled and furious,
Defcon
- ------------------
# Attacker Intel as of 2014-02-13 18:00:00 UTC
We normally do not doxx anyone, and hold user information sacred. But this is an extreme situation affecting our entire community, and all three users who have exploited this vulnerability are very much at risk until they approach us directly to assist with any information.
Do not reveal any details of the attack. This will jeopardize your reward. Contact us directly.
If anyone has purchased or sold to these usernames, expect generous bounties for any information you can contribute which leads to identification.
# Attacker 1: (Responsible for 95% of theft)
Suspected French, responsible for vast majority of the thefts. Used the following six vendor accounts to order from each other, to find and exploit the vulnerability aggressively.
## Usernames used:
narco93
ketama
riccola
germancoke
napolicoke
smokinglife
Transactions listed at bottom of this file. Finding Attacker 1 is top priority.
# Attacker 2: (Responsible for ~2.5% of theft, using same methods towards end of attack lifecycle, likely knows Attacker 1)
LethalWeapon - Australia - "stumbled upon" large amount of BTC
# Attacker 3: (Responsible for ~2.5% of theft, using same methods towards end of attack lifecycle, likely knows Attacker 1)
mrkermit - Australia
# Theft Withdrawal Transactions and historical withdrawals by Attacker 1
address,txid_cleaned
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,c0d1f825af3d2b2267a2b419b13546c8b543c4b808473fbae4fc66079fe812c3
1LgdR7EdjuUyBkSgLXS7K5Viur4gPbcMMq,c48cd35a4e5bdcc8e3bfaa7f5c75c69c7e029bc7f493d13e8cde4dfb612eb6f3
12HujhGQqPMvb9Jeip5uSEzcUtuLKf31wd,a0deba5e29d8c347a597a4093ecab876a3a62f6da0c59d5b0e03ef47b0b68b53
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,bd68169c4a7ff017041595aa55f825d437f776e4574286b736aaef1950afe6a7
16unhdR3bctU2b5zTcek1dT4iiaWDKPHkE,5e79f7010d40df0496ce69c805f2d8c2271994ce9f33b3e3ff26d5708c9731fc
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,35819f2f65bf49c95618100af6c7084c64b39a925693120e1bef2feef2596d8a
17SzZX9rH1iXASraKC1yPxMZZN6utdmdEU,e4be96c5cf64e31817cf6f2fdbb6c825e145ded397a5203804cca57f4737523a
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,ae0b814a44e8fa407803857a431279ea94141aa67a7c068ec6eed36321bf889f
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,521b551bfbd518921547fd85d1c6a824e214dee573219199f24b6499300839be
13NizDxGnt44bhvMJpttqB7ghfkerb9WUQ,9ceb3828c75025ba4f5ee0aa5ed5508bad86ffc85dfb7e9b32a78f29f9f58d15
18HBFs5b5RapzPsuHTXD8cGKkwKDpQDhjm,32d562acbae9d385ed8e644d3935e59b758689504911a8c7f0a73be04c4d4364
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15k24ojcgUyZUWYP47ZSLn9UiUpmBmCiE1,3c9d81a386b661d521312c84de4f4b0e48f7d43a128ded0c493ff3ad16205a0f
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,0f1a8a0258e6a8b0860f7ba04a81c31077e029b7a5ac82b6631c5397b7b7a0d6
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,582b8663a91adc90d931ff1536802fa6d2422176230b5664b636826be63bf049
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,12fd1f14c55bfc3bd07d644355f047d8237855ec3e5a6434254cb021e8a0fcf3
1C2qqRaDHGbTHeEa29p3QruyUKusYDMCb9,82cdc3b2dedfbfaad5a5c8d89a775af2df535ebe9e3d8602633f9976ad0abdf5
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18ozftq32S4ppV5tPLtg7Eb12GJt8j2B34,35d4e048ccf110e46a2f4b3f7d76b23d60adf5acfc2019c967c2d95cd5423e05
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670
Silk Road Discussion / Re: Why delete the "I'm furious" thread and posts?
« on: February 15, 2014, 07:16:12 pm »
I have the post in it's entirety. I just don't see the point is reposting and stickying it again...If someone can convince me, I will.
671
Silk Road Discussion / Re: If this is a scam, why weren't withdrawals halted?
« on: February 15, 2014, 03:32:11 pm »
What sickens me the most is that this may put people on the streets, default on loans, become physically hurt, even killed due to owing money to cartels or others.
Obviously I was not trusted with access. Maybe I could have done something to convince Defcon to provide it, I don't know....I simply cant handle a coffin on my conscience.
Obviously I was not trusted with access. Maybe I could have done something to convince Defcon to provide it, I don't know....I simply cant handle a coffin on my conscience.
672
Silk Road Discussion / Re: If this is a scam, why weren't withdrawals halted?
« on: February 15, 2014, 03:13:31 pm »
Not enough had access to stop this. That is clear.
Had I been able to hit a killswitch seeing the server balance begin to drop quckly, you can bet your life I would have disabled withdraws and taken the market offline.
Had I been able to hit a killswitch seeing the server balance begin to drop quckly, you can bet your life I would have disabled withdraws and taken the market offline.
673
Silk Road Discussion / Re: The Oracle is wrong. The Oracle is the staff member that is behind this.
« on: February 15, 2014, 02:22:39 pm »DoctorClu - can you confirm that Oracle was part of the Admin/Dev team?
Not to my knowledge, but not every member of staff knows everything about the others. We go through layers of security to do so.
674
Silk Road Discussion / Re: The Oracle is wrong. The Oracle is the staff member that is behind this.
« on: February 15, 2014, 02:01:16 pm »Welcome back. And this is HIGHLY interesting...It's also highly full of shit. The thread I mean. Not you.
Say as you please, but DrClu will confirm that I have uncovered alot. More than even he knew.
Also, Clu I was possibly pointing blame to earlier. He is not to blame. CLU AND STEALTH CAN BE TRUSTED.
Thank you for stating so publicly.
Hiniguel has done some serious digging and from what he has provided to me, he has hired some VERY skilled people and proved it.
Oracle - Be afraid.
675
Silk Road Discussion / Re: Silk Road is regrouping for 24-48hrs after suffering a major attack.
« on: February 15, 2014, 11:25:07 am »
I can tell you we will not meet that mark. Apologies, but I am only trying to be transparent.
More work is required on the market to revise it. Escrow code must be removed, new fee-structure implemented, and then pen-tested. Expect another 24-48 hours.
More work is required on the market to revise it. Escrow code must be removed, new fee-structure implemented, and then pen-tested. Expect another 24-48 hours.