Tuesday, January 6, 2015

Hackers Steal $5 Million Dollars in Bitcoin -- Vault of Satoshi Closing -- True Randomness & China!

 Good Morning Bitcoins!

Hackers Steal $5 Million Dollars from Bitstamp,

but didn’t we know that yesterday?

How can you tell if your random numbers are random enough?

Vault of Satoshi is closing in less than a month -- withdraw your coins today or they’re gonna keep em.

And... is China responsible for the Bitcoin Crash or are they just easy to blame because they’re such a large target.

Today is Tuesday, January 6th, 2014 -- MadBitcoins: We eat what we like.

This episode is sponsored by Coinkite.  Coinkite has added multi-sig, and has gone above and beyond what’s available, bringing real security to wallets. They offer privacy with Tor and a comprehensive developer API!  Give it a try today for free at Coinkite.com!

Here are Today’s MadBits:

Hackers steal $5 million dollars in attack on European bitcoin exchange.  The mainstream media gleefully confirms Bitstamp Theft.  They just love reporting on Drugs and Bitcoin or Bitcoin and Hacking.  Such sensationalism!  Much wow.  Still, $5 Million dollars seems like too much to keep in a hot wallet.  I wonder if it was an inside job.

It’s also possible the hack was totally random. Security Researcher Filippo Valsorda, already well known for his work with the heartbleed vulnerability has done it again, this time pointing out a weakness in the way bitcoin keys are generated.  It seems like if you re-use the same random number while generating the keys, the keys you generate aren’t really random and can be hacked.  It’s possible that the Bitstamp hack, much like last month’s Blockchain.info hack are both due to this failure to use proper randomness.  He presented his findings at the recent Hack the Box conference in Malaysia.

Vault of Satoshi is Closing.  As reported yesterday on the World Crypto Network, bitcoin exchange The Vault of Satoshi is closing.  Preferring instead to concentrate on their Netflix-like startup TurboFlix the company is giving everyone 30 days to withdraw their funds or they will claim them for themselves.  How sporting.  Like a landgrab in reverse.

China’s rallying stock market could be the cause of this weekend’s bitcoin crash.  During the speculative bubble of last year, the Chinese were buying bitcoin like crazy, but that’s all changed now with the Chinese stock market suddenly exploding, leading many analyists to believe that this was actually bitcoin money flowing back into the chinese market.  Others believe it was simply due to insider trading, perhaps early leak of the Bitstamp situation.

Meanwhile Bitcoin Prices are up about a point with WinkDex reporting a last of $275 -- a high of $276 and a low of $267.

Litecoin is at $2.05 cents a coin.

Share -- Like and Comment!  Your clicks count!  Literally!

Donate and Subscribe at MadBitcoins.com!

Follow MadBitcoins on Twitter @MadBitcoins

Until Next Time
This has been...
Mad Bitcoins.
Mad Bitcoins?

An old man turned ninety-eight
He won the lottery and died the next day
It's a black fly in your Chardonnay
It's a death row pardon two minutes too late