Uh-oh, looks like all the buttcoin miners with hundreds of bitcoins and thousands of dollars trapped in Mt. Gox aren’t happy with the endless delays and the murmurs of them waiting until the weekend to close up shop, take take the money and run.
At least one guy is being pro-active about the sitution.
Looks like someone’s gonna get got.
Forums member c-rock can read between the lines though.
This is going to get real ugly real fast folks.
Mt. Gox re-opening up at 11EDT tonight; huge run on the bank expected, total collapse of bitcoin economy emminent
EDIT: Relaunch delayed 24 hours because someone took their last highlighter pens.
After Mr. Gox claimed do-overs, and had no idea how to re-secure their site or even verify who’s money is who, they are planning on re-opening tonight and everyone is waiting for the pandemonium to begin.
Bitcoins are the product of a possibly fictional Japanese man named Satoshi Nakamoto. They are “mined” through having computers with powerful graphics cards solve gradually more complex mathematical equations, and only 21 million Bitcoins will exist (creating an inherently deflationary currency, a major no-no). Bitcoin gained notoriety due to the press talking about how people were using a service named “Silk Road” to buy drugs online with Bitcoin, and Bitcoin’s “value” skyrocketed to over $30 to 1 BTC.
The big Bitcoin “currency exchange,” MtGOX (“Magic: the Gathering Online Exchange,” or, as they like to call it, “Mount Gox”) made a killing off of taking a .65% fee off of every conversion, and had a policy of only allowing people to withdraw $1000 USD a day or $10,000 a month from their MtGOX account, supposedly to conform with money laundering laws but actually to prevent a run on the bank. The first run on the bank happened in relatively slow motion due to MtGOX holding everyone’s money hostage (if you can only withdraw $1,000 a day you have an interest in keeping the bubble going artificially long) and helped prevent a full-fledged initial run on the bank. Nevertheless, prices plummeted as low as $10 USD-1 BTC before recovering to about $15.
Then, MtGOX was hacked and someone took 100,000 BTC and sold them to another account of his for $.01 a Bitcoin (to conform with their “withdraw no more than $1000 a day” rule) and this crashed the market. MtGOX shut down and has had an incredibly tough time trying to rebuild itself. It instituted a “rollback” of the deal and reclaimed the “stolen” Bitcoins, but it is still sitting on at least 1.3 million dollars of other people’s money, and they’re no longer even completely sure what belongs to who. They’re opening the market up again at 11 PM EDT tonight, and we will witness a full-scale cyber-run on the bank, It’s a Wonderful Life-style.
Various other exchanges have been set up to replace MtGOX, but none is that big yet.
Via Something Awful
Let’s check out some sweet Bitcoin Facebook action, shall we?
Thanks to YOSPOS for the inspiration
Some doofus on the Steam forums wants to pay with fake internet crypto-butts to buy special hats on TF2.
It’s a good thing he mentioned that it’s a “high risk currency” or else some mod might have been forced to wade through the Bitcoin forums to figure out what this asshat is blabbering on about.
Another Steam member offered a better solution
At least bottle caps are of more use than a crypto-currency no one wants to use.
Lionhat Security takes claim for Mt. Gox hack and user dump, taunts owners and promises next black friday.
I just received an email from a reliable source (who clued me into the Mt. Gox hack well before the bitcoin forums knew) which points to a security group taking response for the hack and database dump today.
Subject: mt.gox hack 2day
i know the guys who hacked into mt.gox and dumped the data today. they released about 60k usernames/passes (hashed), but say they are hanging on to the good stuff for now, preparing for another major crash (without correction this time they say)
these guys aren’t lulsec or anon, think bigger picture, esp. in an unreg market like bitcoins ðŸ˜‰
He sent me a link to a manafesto from Lionhat Security, who taunts the lead developer storing US customer info overseas and who’s previous experience includes iPhone applications.
Another release from lionhat security
bitcoin sure has come a long way lately? people moving their life savings around, putting it all in mtgox. well you saw what happened the other day what we were able to acquire from them. maybe you shouldn’t have trusted an 18 year old whose credentials include an iphone soundboard app with your offsite servers. also, shouldn’t he have been paying attention to transactions instead of attending anime conventions? ðŸ™‚
well, good luck with the mining and all, we’re halfway there with the next black fridayQQ
so throw a few coins our way and we’ll give you a little preview of what we have in store next in addition to some more goodies we got from the last hack ðŸ˜€
— lionhat security – in kimshe we trust
They included a bitcoin block link so maybe they’re looking to cash in on the same penny BTC action from today, who knows.
Remember, if you have any tips feel free to contact me
I’m not sure what happened today, but Bitcoins briefly lost all value, dropping from $18 to $.01 nearly instantly.
The price shot back up alost instantly (and Mt. Gox had crashed so no one could put in buy orders ar <$1), but not before the bitcoin guys also proceeded to freak the fuck out.
It’s also worthy to note how much power Mt. Gox has over the entire market, a large sell over literally destroys the entire economy.