13 Feb '14, 9pm

The Silk Road 2 has been hacked for $2.7 million in bitcoin

The second incarnation of the Silk Road has run into some trouble, with the administrator known as Defcon claiming today the site has fallen victim to a hack, and that all the associated accounts have been emptied . Judging by the blockchain records, attackers made off with roughly $2.7 million in bitcoin, the site's complete holdings. The site is still officially active According to Defcon, the hack exploited the same "transaction malleability" bug that caused temporary shutdowns at Mt Gox and BitStamp earlier this week. He claims a vendor exploited the bug during a vulnerable moment in the site's relaunch process, initiating and hiding a flood of transactions until the accounts were emptied. The process required unusually lax security procedures by the site, with little separation between vendor wallets and escrow holdings, but given the scrappy nature of the endeavor, i...

Full article: http://www.theverge.com/2014/2/13/5409340/the-silk-road-2...

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