14 Feb '14, 12am

Relaunched Silk Road Loses Millions in Bitcoin Theft

Relaunched Silk Road Loses Millions in Bitcoin Theft

The Silk Road interface, showing drugs and other illegal goods for sale. Just months after a high-profile takedown and prompt resurrection , the Internet's most famous black market, Silk Road, has suffered a theft of bitcoins worth millions. The administrators say the thieves took advantage of a bug in the virtual currency itself, but others suspect it may have been an inside job. In a post on the Silk Road's official forums, only accessible via anonymizing service Tor, a staff member going by the name Defcon explained that a hacker had cleaned them out: "Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as 'transaction malleability' to repeatedly withdraw coins from our system until it was completely empty," wrote Defcon. The bitcoins, belonging to both Silk Road staff and users, were temporarily ...

Full article: http://www.nbcnews.com/tech/internet/relaunched-silk-road...

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Major Silk Road 2.0 hack costs bitcoin users millions of dollars

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