Silk Road 2 officials posted an post in a forum that hacker have used the latest exploit in Bitcoins to steal 4474 bitcoins. The site used a central escrow service to send bitcoins from buyers to sellers. Hackers took advantage of the Transaction But which allow to transact same amount multiple times. This is the same bug which forced Mt.Gox to halt all withdrawals.

Read More :- Big Bitcoin Exchanges Halt Trading

Mt.Gox confirms that they have made their average bitcoin wallet secure against these type of Attacks.

Hackers used Silk Road’s automatic transaction verification system to order from each other and then request refund for unshiped goods. Hackers were able to use the transaction Bug because Silk Road used only transaction ID for confirmation of transfer process of bitcoins. They run an automated refund system for all their vendors and six vendors misused the exploit.

Nicholas Weaver, a researcher at the International Computer Science Institute, states that total theft of Silk Roads bitcoins is just 4,400 Coins Approx $2.6 million.

Silk Road 2 Hacked Due To Transaction Bug in System, 4000 Bitcoins Stolen

According to Silk Roads data they have detected 3 attackers One is from France and other 2 are from Australia.

Defcon denies accusations but they took responsibility for allowing the theft. This attack has caused tremendous loss to Silk Road, some of the silk road users are planning to move their business to other marketplace like Agora, Pandora.

After this attack all other sites currently keep the users bitcoin “escrow” before a transaction is complete to prevent such frauds.

Defcon further clarifies that from now onwards Silk Road will no longer use any escrow for prevention, Instead they will ask users to send money directly between buyer and seller.

The site is trying to track other thief’s, the usernames used in this attack are
narco93
ketma
germancoke
smokinglife
riccola
napolicoke

As usual we say no “One is secure in this cyber world “

“No marketplace is perfect “.

LEAVE A REPLY

Please enter your comment!
Please enter your name here