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.
The Mt. Gox vulnerability we posted on earlier was confirmed today.
I received an anonymous tip:
Subject: Reports of MtGox being hacked ARE REAL
A member of the bitcoin forums does seem to indicate that a vulnerability in Magic The Gathering Online Exchange’s site was exploited.
Users corroborate that their accounts were drained as well.
And earlier today Mt. Gox admitted the flaw in their site.
Why these guys put their faith in trust in this one site beyond my comprehension. Isn’t the whole point of buttcoin is that it’s P2P, decentralized? Then why does the entire bitcoin economy rely on this one site to not only determine the value of a bitcoin, but to even turn it into USB, a currency they can actually use?
The buttcoin libertarians set up their own Fed, the one thing they wanted to get away from.
Received an anonymous tip today, here’s what it had to say:
There is a pastebin post going around that was created by a group called Buttsec. They claim to have “compromised” MTGOX and possibly other play money-to-real money sites.
Jake’s link led to site where a group called BUTTSEC (a pun on lulzsec) had posted their manifesto
Digging further, we found some other interesting notes
We’ve already seen reports of some people claiming they’ve had money transferred out of Mt. Gox without their knowledge, could this be indicative of something larger?
Let us know in the comments!