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Bitcoin Exchanges Under ‘Massive and Concerted Attack’
Coin Desk ^ | 11 February 2014 | Emily Spaven

Posted on 02/11/2014 12:06:45 PM PST by Errant

A “massive and concerted attack” has been launched by a bot system on numerous bitcoin exchanges, Andreas Antonopoulos has revealed.

This has lead to popular exchange Bitstamp putting a temporary halt on all bitcoin withdrawals.

Antonopoulos, who is the chief security officer of Blockchain.info, said a DDoS attack is taking Bitcoin’s transaction malleability problem and applying it to many transactions in the network, simultaneously.

“So as transactions are being created, malformed/parallel transactions are also being created so as to create a fog of confusion over the entire network, which then affects almost every single implementation out there,” he added.

(Excerpt) Read more at coindesk.com ...


TOPICS: Business/Economy; Computers/Internet; Conspiracy; Society
KEYWORDS: attack; bitcoin; crypto; cryptofail; epicfail; exchanges; fraud; gox; protocol
Mt. Gox may be right after all about a certain vulnerability in the protocol and someone seems to be making a move to take advantage of it before it gets fixed.
1 posted on 02/11/2014 12:06:45 PM PST by Errant
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To: Errant

Maybe. Or maybe instead of simply making it illegal, they are just going to overwhelm it with attacks from all quarters including technological ones.


2 posted on 02/11/2014 12:08:52 PM PST by marron
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To: Errant

All your bitcons belong to us!


3 posted on 02/11/2014 12:09:01 PM PST by b4its2late (A Progressive is a person who will give away everything he doesn't own.)
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...

Click to be Added / Removed.
4 posted on 02/11/2014 12:09:22 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Wonder how many NSA agents are involved. Don’t want to step on the toes of the fed monopoly, or allow the chinese to move cash out of their corrupt communist banking system, now would we?


5 posted on 02/11/2014 12:11:39 PM PST by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: marron

Somebody isn’t happy that genius entrepreneurs found a way around their fiat greenbacks?


6 posted on 02/11/2014 12:13:50 PM PST by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Errant

under attack by the issuers of fiat currencies

a solution will be found... and it’ll just get stronger

LOL


7 posted on 02/11/2014 12:13:57 PM PST by sten (fighting tyranny never goes out of style)
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To: goodwithagun

Government don’t like competition.


8 posted on 02/11/2014 12:14:39 PM PST by dfwgator
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To: sten
I completely agree with you sten!

Also in perfect timing:

JPMorgan Report Slams Bitcoin as ‘Vastly Inferior’ to Fiat Currency

9 posted on 02/11/2014 12:18:19 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

NSA ATTACK!


10 posted on 02/11/2014 12:19:49 PM PST by aMorePerfectUnion
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To: Errant

Those darn ‘bots’ gummin’ up the works again. We are DOOMED!!!!


11 posted on 02/11/2014 12:24:58 PM PST by bobby.223 (Retired up in the snowy mountains of the American Redoubt and it's a GREAT life!)
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To: Errant

A made up currency invented by a hacker experiences software problems/ security issues. Who would have thought?


12 posted on 02/11/2014 12:25:54 PM PST by FatherofFive (Islam is evil and must be eradicated)
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To: aMorePerfectUnion; All

I just check mining, there doesn’t seem to be any issues with hashing and communicating results.


13 posted on 02/11/2014 12:28:23 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: dfwgator
Government don’t like competition.

And the Federal Reserve likes it even less.

14 posted on 02/11/2014 12:29:58 PM PST by Paine in the Neck (Our Lives, our Fortunes, and our sacred Honor)
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To: All

All the news agencies (fortune, bloomberg, cnbc, nytimes, cnn money, forbes) are all posting negative news stories now. Talk about timing...


15 posted on 02/11/2014 12:37:41 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: FatherofFive
security issues...


16 posted on 02/11/2014 12:43:51 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Currencies can shrug off a lot of problems, including rumors and volatility. One problem they can’t finesse is currency holders not having access to their funds.


17 posted on 02/11/2014 12:44:12 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Errant

jpmorgan... a respected voice in the world of ‘high’ finance

ROFLMAO


18 posted on 02/11/2014 12:46:56 PM PST by sten (fighting tyranny never goes out of style)
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To: Errant

Bitcoin is toast. What? You thought they were going to let it survive? As a former Prosecutor most people truly have NO idea how powerful even a state government is.


19 posted on 02/11/2014 12:49:21 PM PST by RIghtwardHo
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To: Zhang Fei

This problem seems to be isolated to exchanges and their third-party software and someone attacking a partial vulnerability. No problem accessing locally stored coins or transactions between mining pools, miners and etc., so far.


20 posted on 02/11/2014 12:50:10 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
JPMorgan Report Slams Bitcoin as ‘Vastly Inferior’ to Fiat Currency

I guess no one has pumped a few billion dollars of Bitcoins into Chase Bank as happened with the "vastly superior" Fed funny money.

21 posted on 02/11/2014 12:51:16 PM PST by KarlInOhio (Recycled Olympic tagline Shut up, Bob Costas. Shut up! Shut up! Shut up! Shut up! Shut up! Shut up!)
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To: RIghtwardHo

I harbored no doubts about there not being a fight. New technology ALWAYS wins in the end though, if it proves itself advantageous over the old way of doing things.


22 posted on 02/11/2014 12:54:12 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

The Controllers don’t like Bitcoin messing with their operations. That much should be obvious to everyone by now.


23 posted on 02/11/2014 12:54:43 PM PST by B4Ranch (Name your illness, do a Google & YouTube search with "hydrogen peroxide". Do it and be surprised.)
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To: sten

same game new target.

That over representation game...is useful

dollars,gold,silver,bitcoin,

some things will never change....the chins of course demand the real stuff...


24 posted on 02/11/2014 12:56:22 PM PST by Therapsid
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To: sten
jpmorgan... a respected voice in the world of ‘high’ finance

LOL, yep... Didn't they just get fined for about three times the entire value of Bitcoins in the world for their "respected activities"?

25 posted on 02/11/2014 12:58:09 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
Jan 06, 2014 · Fine for ignoring signs of Bernard Madoff's Ponzi scheme will take JP Morgan's penalties to $22.2bn...

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10554219/JP-Morgan-set-to-be-fined-2bn-for-allegedly-ignoring-Bernard-Madoff-Ponzi-scheme.html

26 posted on 02/11/2014 1:04:37 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

The Fed can manipulate the gold market, which is orders of magnitude larger than the Bitcoin market. It can crush Bitcoin with little effort. Couple this with some cyber-warfare technology, and it costs very little.

That’s the fatal flaw in Bitcoin. Governments reserve the authority to create money out of nothing (aka, counterfeiting) to themselves, and can no more tolerate competition from alternative currency systems than they can counterfeiters.


27 posted on 02/11/2014 1:19:26 PM PST by RBroadfoot
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To: Errant

Cui bono?


28 posted on 02/11/2014 1:19:42 PM PST by OldNewYork
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To: Errant

I pretty sure I can make back my Bitcoin losses with my Nigerian investments.


29 posted on 02/11/2014 1:35:59 PM PST by Dagnabitt (Amnesty is Treason. Its agents are Traitors.)
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To: Errant

Your Gov’t dollars at work, like all Gov’t projects, it will fail, the smartest people are not in Gov’t.

My confidence is not shaken, this is a good thing and will only strengthen the Bitcoin system over time.

There is a world wide economic war going, my money is on the governed.


30 posted on 02/11/2014 1:37:53 PM PST by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: OldNewYork

Mankind, if people in the world could wrestle control of the medium of exchange away from governments and banksters.


31 posted on 02/11/2014 1:45:05 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Mining is chugging along fine today.


32 posted on 02/11/2014 1:46:57 PM PST by George from New England (escaped CT in 2006, now living north of Tampa)
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To: RBroadfoot
That’s the fatal flaw in Bitcoin.

We shall see. This is the first iteration, lots to learn and improvements to be made. Already there are almost a hundred more in the pipeline. It's a powerful idea, kind of like the idea of freedom in lots of ways. Of course the old system isn't going to go quietly - have they ever?

33 posted on 02/11/2014 1:48:12 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

This just makes Bitcoin stronger. Bitcoin will out perform any financial instrument known to man in 2014.
My miners are bangin’ on all cylinders!


34 posted on 02/11/2014 2:22:14 PM PST by TsonicTsunami08
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To: TsonicTsunami08
My miners are bangin’ on all cylinders!

Ha! Mine too! ;)

35 posted on 02/11/2014 2:23:30 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

This may actually be a good thing... It will be interesting to see how it weathers this storm and if it results in some security hardening. I’m sure it won’t be the last attack and the infrastructure needs to be tested to prove itself.


36 posted on 02/11/2014 2:41:59 PM PST by jaydee770
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...

Thanks Errant.


37 posted on 02/11/2014 3:12:19 PM PST by SunkenCiv (http://www.freerepublic.com/~mestamachine/)
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To: Errant

Who couldn't see this coming?

38 posted on 02/11/2014 3:19:44 PM PST by McGruff (Every night has it's dawn.)
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To: Errant

...and so the bleeding obvious weakness of online currencies rears its ugly head.


39 posted on 02/11/2014 3:39:46 PM PST by AuditTheFed
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To: Errant
My guess was correct.

5.56mm

40 posted on 02/11/2014 3:42:50 PM PST by M Kehoe
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To: M Kehoe
I thought about you when I heard of the DOS attack. ;) There is a problem too with the exchange wallet software that makes it susceptible.

And there is a lot of unknowns, like when did attacks actually begin on Mt. Gox. They've been having problems transferring funds to customers way before this.

41 posted on 02/11/2014 3:51:23 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: jaydee770
I’m sure it won’t be the last attack and the infrastructure needs to be tested to prove itself.

Agree

42 posted on 02/11/2014 3:55:18 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: RIghtwardHo

“Bitcoin is toast. What? You thought they were going to let it survive? As a former Prosecutor most people truly have NO idea how powerful even a state government is.”

Yep, just witness how omnipotent the “guvmint” has been against the drug trade!

Or not.

Anyhow, I’ll keep an eye out for my “powerful” state government for sure... ;-)

As a further aside, I expect any government efforts to attack cryptocurrencies will fare about as well as an attack on barter. :-)


43 posted on 02/11/2014 5:41:22 PM PST by PreciousLiberty
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To: sten

“a solution will be found... and it’ll just get stronger”

Most likely...

http://zerocoin.org


44 posted on 02/11/2014 5:43:46 PM PST by PreciousLiberty
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To: AuditTheFed

“...and so the bleeding obvious weakness of online currencies rears its ugly head.”

Sure. And the amazing strength of fiat currencies is evident, right? $75 billion per month of “quantitative easing”...good stuff. :-P

Everything in the world is worth exactly what someone is willing to pay for it. At the moment, it’s around $660 per bitcoin.

https://www.lakebtc.com


45 posted on 02/11/2014 5:47:03 PM PST by PreciousLiberty
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