Bitcoin Drama

Search for Owners of MyBitcoin Loses Steam

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Energy has flagged in the hunt for the people behind MyBitcoin.com, the popular e-wallet service that disappeared with, according to them, 154,406 Bitcoins back in early August. After days of silence, a spokesman emerged for the site and a claims process was initiated to refund users 49 percent of their deposits, which in today’s prices shakes out to $861,755.

But that still leaves 78,747 BTC ($896,929 USD at today’s prices), which MyBitcoin’s spokesman says were taken by hackers, unaccounted for. Read More

Bitcoin Drama

MyBitcoin Spokesman Finally Comes Forward: “What Did You Think We Did After the Hack? We Got Shitfaced”

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The popular Bitcoin transaction processor that disappeared from the internet about 10 days ago, taking at least tens of thousands of Bitcoins in user deposits with it, has been communicating via statements posted to the site. In essence: We screwed up. We were hacked. We have enough BTC to refund some of the lost Bitcoins, and then we’re done. “It appears to be human error combined with a misunderstanding of how Bitcoin secures transactions into the next block,” the most recent statement says by way of explanation.

Some members of the Bitcoin community suspect foul play (more about that later). But as promised, there is now a claims form for users who lost Bitcoins in the debacle: “Claims are manually reviewed and will be processed within 48 hours of being filed. This claim form will remain online for 30 days.”

And as of Saturday night, the historically-reticent MyBitcoin has a voice: “Tom Williams,” who stepped forward to field questions from the Bitcoin community via the #bitcoin-police channel on IRC, where he verified his association with the site by moving Bitcoins from the MyBitoin IP to a pre-specified address and providing the same encrypted signature that was used to sign the official statements posted on MyBitcoin.

After passing muster with the tech-savvy denizens of #bitcoin-police, a loosely-organized group of Bitcoin enthusiasts who investigate various issues in the Bitcoin community, Mr. Williams got down to tacks. “Listen: what did you think we did after the hack happened? We got shitfaced for many days. What would you do? Fuck.” Read More

Paying Crimes

MyBitcoin.com Is Back: A Week After Vanishing With at Least $250 K. Worth of BTC, Site Claims It Was Hacked

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Who is Tom Williams? MyBitcoin.com, which disappeared without explanation from the internet about a week ago, is back up with a messages “From the desk of Tom Williams, operator of MyBitcoin.com.” The statement, labeled an “incident report,” is the only live page on the site. MyBitcoin noticed a large amount of BTC missing, the statement says, realized its security had been breached, and pulled the site immediately. After investigating the hack, the statement says, the “we” behind MyBitcoin realized it was bankrupt and “would have to go into receivership.” There will be a claims process for reimbursing users, the statement says.

We’re not exactly sure what constitutes receivership in a system with no central authority, or why the site’s anonymous operators would feel obligated to refund its anonymous users given the utter lack of accountability. Before the statement hit, word on the street was that MyBitcoin.com, the user-friendly Bitcoin wallet that was the go-to for most Bitcoin newbies, was an elaborate ploy set up by a group of (Canadian?) hackers who swindled naive Bitcoin users for the money and the lulz. At the time it went down, MyBitcoin.com had more deposits than the third largest Bitcoin exchange, Bitomat.pl. Bitomat.pl had 17,000 BTC on hand when it went down this weekend due to human technical error. But just one Bitcoin user, the vocal Bruce Wagner, had 25,000 BTC stored at MyBitcoin when it disappeared. Betabeat had 6 BTC there, and we’re surely not the only ones. At today’s prices, MyBitcoin had more than $250,000 in its coffers. Read More