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.

Someone embedded the “1812 Overture” song into the background with a dazzling animated picture show. This reviewer gives it 2 thumbs up!

Unfortunately within a few moments the whole site came down. It’s unlikely it’s due to this attack, and more like the forum is so utter and complete garbage (despite the administrator Theymos accepting over $100k in donations to upgrade it) it probably just simply collapsed from having a several meg file in the header.

See the video below for the whole thing in action.

The post BitcoinTalk hacked again by “The Hole Seekers”, forums down. (video) appeared first on Buttcoin Foundation.

Here’s some facts about Silk Road and what charges this guy is facing!

http://www.scribd.com/doc/172768269/Ulbricht-Criminal-Complaint

Interesting things from the document so far:

• Cryptography was really good, and the complaint states that the TOR network makes it “practically impossible” to trace users.
• The tumbler worked. It “frustrates attempts to track transactions back to the blockchain and makes it practically impossible to trace users.”
• There were 9 MILLION bitcoins worth of transactions that passed through the system over time.
• The server was in a foreign country. The report does not say where.
• There were 957k registered silkroad accounts.
• 146k unique buyer accounts.
• It’s unstated from when the investigation started, but they received a complete copy of the Silk Road web server on the 23rd of July 2013. This was all done under the Mutual Legal Assistance Treaty, which implies that they had access to current site information up until the point they shut the site down.
• This included user account and transaction information. It’s unclear whether or not this covers addresses and other sensitive transaction information. **This also apparently covers at least 60 days worth of messages from the period where the site was copied. It seems from the information, PGP messages were probably ok given that the document said PGP makes it practically impossible to trace the users.
• Silkroad maintained a small staff of admins, it wasn’t just DPR.
• It is not certain that PGP worked for DPR, they have messages between the staff and DPR from “forensic analysis of the server.” Unless he was not using PGP.
• DPR solicited murder for hire. Someone was able to obtain thousands of usernames, passwords, and personal info of silkroad users. It is assumed the feds have this, because they speak about the sample messages of names that the hacker sent. As a result, DPR attempted to have him killed. It is not known if the guy ever was indeed killed.
• The silk road was basically made from the shroomery.com, it was the first place he visited. They traced him by finding his old posts on various forums where he advertised it, not as the owner, just saying “I found this site, what do you think about it?”
• They caught Ross Ulbricht through simple web sleuthing and a few subpoenas.
• He did his web administrating from an internet cafe on Laguna Street in San Fransisco.
• Canada intercepted fake ID’s going to his home. This was used to match with fake ID requests.
• For all the money he made, he lived in a small apartment with room mates for under 1000 a month.
• Here is the blockchain transaction for the “hit”:http://blockchain.info/en/tx/4a0a5b6036c0da84c3eb9c2a884b6ad72416d1758470e19fb1d2fa2a145b5601
• youtube URL:�http://www.youtube.com/user/ohyeaross
• Interview between him and a friend:�https://www.youtube.com/watch?v=Olib3jnvSmw
• The site where he made his first mistake and gave out his email address in PMs with his name.https://bitcointalk.org/index.php?PHPSESSID=tt9mt8nqt3lfm0ff1reoduo8j6&topic=47811.msg568744#msg568744

Amazing stuff.

So how did they track him down? This buffoon decided to solicit for help building his site posting his�[email protected]�address! Used an insecure internet cafe … 500 feet from his house! He even�told the feds about Silk Road�during an earlier altercation with zero provocation!

I didn’t compile this, direct quote from the SR forums. (Which are still working)

DPRs Fuckups

1. Posted Gmail address containing his real name using same forum account handle used to advertise for SR when it started.
2. Logged into the VPN used to access SR and his gmail address from the same IP. I repeat, he did NOT use Tor to administer SR.
3. Use same public wifi to access internet 500ft from his house.
4. Disclosed that his timezone was PST in a message.
5. Wrote in his linkden profile that he had left his field to focus on “creating an economic stimulation designed to give people a first-hand experience of what it would be like to live in a world without systemic use of force by institutions and government”.
6. Ordered fake ID’s internationally to his home address (to setup more SR servers). The fake id’s contained his picture, which considering what they were to be used for doesnt make any sense.
7. Told the DHS when they showed up at his door for the fake IDs that “anyone can go onto SILK ROAD and order fake ids”.
8. Solicited the hitman “redandwhite” for fake ID’s using his DPR account. Hitman obviously FED/RAT.
9. Asked on clearnet helpsite Stackoverflow for help with programming for a hidden service.
10. Changed his real name to a pseudonym a minute before asking.
11. Used code that he posted on Stackoverflow in SR’s code.
12. Increased ire of LEO by doing a Forbes interview. Revealed too much about his character.

Also here is a link to the transaction to hire the hitman:http://blockchain.info/en/tx/4a0a5b6036c0da84c3eb9c2a884b6ad72416d1758470e19fb1d2fa2a145b5601

Edit: Link to supposed conversation with hitman�http://oi39.tinypic.com/jizyah.jpg

Unreal.

I guess the only piece of advice I can offer is this:

(Summary pulled from Reddit)

The post The Silk Road shutdown and how its owner how Ross William Ulbricht, a.k.a “Dread Pirate Roberts”, is totally, completely, undeniably fucked. appeared first on Buttcoin Foundation.

Volume is at an all time high on these exchanges as well. There’s nothing more to do than sit back, relax, and Listen to the sounds of Buttcoin.

The post Bitcoins crashing towards a 50%+ loss today appeared first on Buttcoin Foundation.

[youtube id=”NoBFhdeR9PE” width=”580″ height=”337″]

ETA: According to some dude on reddit, “It looks like they sniffed him out by looking back at old Internet records (forum posts, IPs etc) around the times of SRs appearance. The first person to ever advertise SR was DPR himself, and he used an email account attached to his natural born identity. No NSA or technical hack.”

The post The Silk Road is closed appeared first on Buttcoin Foundation.

Winners will receive 1 swift kick in the ass from myself and a lifetime supply of Mellow Yellow.

The post Spot the Bitcoin Bubble appeared first on Buttcoin Foundation.

Text version:

DWOLLA

As of 12:13 PM on 5/14/2013:

You

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]]> http://www.buttcoinfoundation.org/breaking-department-of-homeland-security-shuts-down-mt-gox-doing-business-with-payment-processor-dwolla/feed 4 http://www.buttcoinfoundation.org/what-really-caused-the-2013-bitcoin-crash http://www.buttcoinfoundation.org/what-really-caused-the-2013-bitcoin-crash#comments Fri, 12 Apr 2013 23:04:54 +0000 http://buttcoin.org/?p=1179 As everyone and their mother is aware of now, the price of bitcoins has fallen drastically, dragging the Winklevoss twins’ net worth down by over 20 million dirty dollars, destroying thousands of redditors’ “investments,” and crushing the hopes and dreams of FYGM libertarians everywhere. Since this obviously was not a speculative bubble and certainly didn’t […]

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]]> As everyone and their mother is aware of now, the price of bitcoins has fallen drastically, dragging the Winklevoss twins’ net worth down by over 20 million dirty dollars, destroying thousands of redditors’ “investments,” and crushing the hopes and dreams of FYGM libertarians everywhere. Since this obviously was not a speculative bubble and certainly didn’t pop because it was ridiculous, we’ll want to take a look at some of the forces that are actually at play here.

MtGOX and other smaller exchanges suffered from severe downtime and delays in trading as panic rippled through the streets and bitcoiners tried to withdraw their funds before their losses were too great. Now you may be tempted to say that these issues were due to being unprepared for the unprecedented popularity of bitcoin or that their infrastructure wasn’t suited to the unexpected rush of traffic. It could even be posited that the admins and coders were incompetent and clueless and had programmed the trading engines horribly. This couldn’t have been the case though, and instead we know for sure (because they told us and they’re absolutely trustworthy!) that every single exchange that was unreachable was being helplessly DDoSed by hundreds of thousands of anonymous hackers from notorious internet website 4chan in an attempt to both discredit Bitcoin and to drive down prices, allowing the miscreants to buy all the bitcoins at low prices before the rebound to million dollar bitcoins. Sadly, the attacks were unsuccessful and the mighty Mount Gox stands strong before us.

Some bitcoin enthusiasts have considered the logistics of launching satellites into orbit to maintain the bitcoin network and blockchain should the world economy collapse and cause a descent into anarchy. Those with access to the satellites would be able to continue mining and trading bitcoins, coming to rule over those who hadn’t planned so well. It could be that Avalon miners have surreptitiously been sent into space and slowly added to the network, their hashing throttled at the moment so as not to attract attention. Until Wednesday all was well until the notriously dangerous HAARP‘s energy was focused on these satellites, destroying the miners and destabilizing the currency, leading to the crash.

Meanwhile, the United States government has been attempting to destroy bitcoin as well, initiating their own DDoS attacks spearheaded by the CIA, launching packets from their headquarters in Langley, and the Department of Defense, using all five sides of the Pentagon to launch heretofore unprecedented attacks on bitcoin exchanges, bitcoin websites, bitcoin forums, and possibly even individual bitcoin users. Reports of imposing men dressed entirely in black suits attempting to intimidate and threaten bitcoin users have begun to trickle in. Unfortunately these reports are anonymous, as the affected users fear for their safety were they to go public.

We’ve also heard some rumors that the Freemasons are once more directly manipulating bitcoin prices, although to what extent and for what reasons we are unsure. They could be looking into colluding with the Illuminati/Bilderbergers to take control of Bitcoin while destroying the world economy and devaluing all other currencies with the ultimate goal of developing a one-world currency while ushering in the New World Order, eventually handing the planet over formally to the Reptoid aliens that have already infiltrated most of the world’s governments.

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]]> http://www.buttcoinfoundation.org/what-really-caused-the-2013-bitcoin-crash/feed 11 http://www.buttcoinfoundation.org/how-i-learned-to-stop-worrying-and-love-the-bitcoin http://www.buttcoinfoundation.org/how-i-learned-to-stop-worrying-and-love-the-bitcoin#comments Fri, 12 Apr 2013 00:16:25 +0000 http://buttcoin.org/?p=1159 For anyone who has been under a rock or in a cabin in Canada or something for the past thirty-six hours, the price of Bitcoins has crumbled. After hitting a high of 266 filthy fiat dollars per tulip bulb, the price crumpled as thousands of people stepped back and realized they’d made a terrible mistake. […]

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]]> For anyone who has been under a rock or in a cabin in Canada or something for the past thirty-six hours, the price of Bitcoins has crumbled. After hitting a high of 266 filthy fiat dollars per tulip bulb, the price crumpled as thousands of people stepped back and realized they’d made a terrible mistake. The resulting selloff once more devastated the Magic: the Gathering Online eXchange‘s servers, pushing the lag up to over an hour, allowing us to watch the price topple down the charts like distant starlight reaching the Earth for the first time in millennia. It finally settled at a low of $105 before jumping back up to $200, then back down, then up, then down, up and down like a yo-yo. Relatively smarter people and panic sellers got out, while the true believers rode it all the way down, despite their losses.

GIF credit @bakedinapie

MtGOX finally admitted that they were not being DDoSed, instead announcing that they are merely incompetent and unprepared for actual web and exchange traffic. They then pulled the brakes and halted all trading entirely to let the market “cool down” following the price crashing.

Meanwhile, trading continued at smaller exchanges, with the prices falling well below $100 as wary “investors” jump ship. Many of them have experienced their own issues from the flood of traffic, with Bitfloor crying wolf DDoS.

What drove this ridiculously huge bubble? If you ask the average bitcoin chump, he’ll tell you that the citizens of Cyprus are buying up huge amounts of bitcoins to hide from their government’s “theft” as the country tries desperately to save its flailing economy. Amazing bitcoin ATMs and fantastic new bitcoin services are springing up all over the country, as well as everywhere else in Europe. None of this is true, however. Cyprus is involved, but not in the way that everyone is trumpeting. Bitcoiners saw the crisis in Cyprus and attempted to pitch their flaky “currency” to Cypriots as a way to escape government controls, hype built up around this, media attention built up around the hype, and then this all began feeding back on itself until yesterday’s reality check.

Today, prominent posts in the bitcoin subreddit included links to suicide helplines, angry screeds about MtGOX, people calling each other out for giving bad financial advice, and the occasional smuglord showing off that he’s still hoarding his buttcoins. The atmosphere there is rather deflated. Bitcointalk just wants MtGOX’s blood.

Who’s left holding the bag this time? Everybody who was gambling on the price going up uP UP forever, all the true believers who’ve been led astray by the likes of Rickard Falkvinge, Max Keiser, and Alex Jones, foolish investors who read about this newfangled “bitcoin” thing in shitty financial rags, and the Winklevoss twins�(notable for such aptly named websites as “Hukkster” and “

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]]> http://www.buttcoinfoundation.org/how-i-learned-to-stop-worrying-and-love-the-bitcoin/feed 8 http://www.buttcoinfoundation.org/bitcoin-a-story-in-six-panels http://www.buttcoinfoundation.org/bitcoin-a-story-in-six-panels#comments Wed, 10 Apr 2013 19:22:49 +0000 http://buttcoin.org/?p=1153 The post Bitcoin: a story in six panels appeared first on Buttcoin Foundation.

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