Shame, really

The post Seen outside the Bitstamp headquarters today appeared first on Buttcoin Foundation.

Earlier today, while the price of Bitcoin was crashing (hence the falling Bitcoins on our site to celebrate the occasion), many users on Reddit started reporting issues cashing out with Bitcoin exchange Bitstamp.

Bitstamp – Bitcoin Withdrawal not processing in time (self.Bitcoin)
submitted 12 hours ago by PokerMarket

I have a pending withdrawal since 12 hours on bitstamp.
Usually they are between instant and 1 hour.
Anyone else waiting for a bitstamp bitcoin withdrawal?

Why are deposit confirmations so lagged on Bitstamp? (self.Bitcoin)
submitted an hour ago * by Tsuyoku_Naritai

Why does Bitstamp lag several confirms behind for incoming bitcoin deposits?
I recently made two deposits to bitstamp, and for each one, other blockchain explorers show 7 confirms more than Bitstamp. It means waiting two hours for a deposit, and wondering if their system is broken till the first confirmation shows up. I’ve had similar happen before but it seems to be getting much worse. What’s wrong with them?
Edit: and now one of them has disappeared. I advise you don’t deposit any bitcoins to Bitstamp until they have responded or whatever is happening is fixed.

Bitstamp is apparently broken or hacked. I suggest not depositing coins there till they respond. (self.Bitcoin)
submitted 58 minutes ago * by Tsuyoku_Naritai

A few hours ago I made 2 deposits to Bitstamp. After lagging 7 confirmations behind on the blockchain, they each disappeared from the incoming transactions list WITHOUT updating my balance, which still sits at zero bitcoins. No transfers or sales have been made under the account and there is no indication that it’s been compromised. Bitstamp haven’t contacted me. Coins from one of the deposits has already been transfered to address https://blockchain.info/address/1JoktQJhCzuCQkt3GnQ8Xddcq4mUgNyXEa[1][1] which I assume belongs to Bitstamp. I’ve contacted support.
Has anyone else managed to deposit bitcoins there successfully in the last hour or so? Has anyone else had an issue? (I need to go now but if anyone else has, then it’s an emergency so all please upvote this post for visibility. If not, then maybe it’s just some crazy new KYC game of theirs).

It appears the issues is that Bitstamp may have been Goxxed. They’ve sent out emails saying their Hot Wallet is having “problems” and that you should stop doing business with them immediately.

Dear customer,

Today our transaction processing server detected problems with our hot wallet and stopped processing withdrawals.

You should STOP SENDING bitcoin deposits to your Bitstamp account IMMEDIATELY as private keys of your deposit address may be lost.

Your bitcoins already deposited with us are stored in a cold wallet and can not be affected.

We will send you more info as soon as possible.

Best regards,

Bitstamp team

Looks like this crash may be because someone just stumbled upon some�very� cheap coins.

Grab your popcorn, it’s going to get interesting.

EDIT: We’ve confirmed this is real

The post Bitstamp is fucked, hot wallet compromised appeared first on Buttcoin Foundation.

According to a pastebin post, hackers are planning to unleash “Operation Shock and Awe”, a campaign to distribute negative news articles in conjunction with a massive sell-off and DDoS campaign on all bitcoin exchanges except one. Using this one remaining exchange, the plan is to buy up remaining coins for cheap, cheap, cheap and then profit when it goes up.

From the post:

1. 15:30-15:45 UTC – Spread bogus AP press releases to 50+ national US and British media outlets and 100+ local outlets indicating exchange site Mt. Gox under investigation by Japnese government for securities fraud, with seizure and asset freeze soon
2. 15:45-16:00 UTC – After initial publication of bogus AP press releases, spam story on reddit and upvote with sock accounts, spread panic in comments using sock accounts
3. 16:00 UTC – Several sellers lined up for a coordinated dump of 250,000+ BTC which will crash the price to under 100 to correlate in time with publication of bogus AP reports
4. 16:10 UTC – Massive coordinated http packet flood (distributed F5) from botnet of 1,000,000+ compromised machines on the following sites:
5. – https://www.mtgox.com
6. – https://btc-e.com
7. – https://www.coinbase.com
8. – https://www.bitpay.com
9. – https://www.bitinstant.com
10. – https://www.bitcoitalk.org
11. – http://s2.bitcoinity.org
12. – http://bitcoinium.com/
13. – http://bitcoincharts.com/
14. 16:30 – 17:00 UTC – During the ddos, buy only from Bitstamp which will not be included in the ddos but was included in the coordinated dump.
15. 17:00 UTC – Stop ddos, buy as much cheap bitcoin from MTGOX as possible as quickly as you can
16. 17:00 or later – Bogus AP reports will be corrected / debunked as hoax, price will rebound
17. Potential profit 200-300%

These sound like scary dudes, I think we should be very afraid.

The post Hackers plan to turn your Bitcoin INTO A BOMB! Operation Shock and Awe to bring massive DDOS and price drops to Bitcoin exchanges. appeared first on Buttcoin Foundation.