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@phusionphil
Announcement
Cryptsy has had problems for some time now and it’s time to let everybody know exactly why. These problems were NOT because of any recent phishing attacks, or even a ddos attack, nor does it have anything to do with me personally.
About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies. After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit. This Trojan had likely been there for months before it was able to collect enough information to perform the attack. It does not appear that this was the original developer for LK7, as on 5/22/2014, we received this message from the new developer who wanted to maintain the codebase:
—
Hello,
Lucky7Coin is not maintained and I would like to take care of it. I have announced that on bitcointalk.org in Lucky7Coin thread. You’re the only exchange for this coin and I hope you will let me take care of it. I’m responsible. You don’t have to be afraid of errors or forks. I’m developing multipool and I know bitcoin internals and protocol.
https://bitcointalk.org/index.php?topic=295157.msg6861797#msg6861797
For a start I’ve changed irc network, so clients could synchronize blockchain. Please upgrade as soon as you can.
Github repo: https://github.com/alerj78/lucky7coin
Branch “master” will always be for stable version, branch “devel” could be dirty. In a 2-3 weeks I’ll release new version with p2pool support and checkpoints. Before that I’ll contact you to check few blocks hashes for checkpoints and make sure there is no fork.
I hope we can cooperate and make this coin live again!
Jack
—
These are the approximate figures taken: Bitcoin: 13,000 BTC Litecoin: 300,000 LTC
This of course was a critical event for Cryptsy, however at the time the website was earning more than it was spending and we still have some reserves of those cryptocurrencies on hand. The decision was made to pull from our profits to fill these wallets back up over time, thus attempting to avert complete closure of the website at that time. This worked fine for awhile, as profits decreased due to low volume and low Bitcoin prices, we would adjust our spending accordingly. It wasn’t until an article from Coinfire came out that contained many false accusations that things began to crumble. The article basically caused a bank-run, and since we only had so much in reserves for those currencies problems began.
Our current customer liabilities for BTC is around 10,000 BTC, so as you can see we would like to see the Bitcoins returned for both our users and for ourselves.
Here are the transaction details from the Bitcoin wallet:
https://www.walletexplorer.com/wallet/0c07e0bec1002bd2
As you can see, 2014-07-29 13:17:36 is when the event occurred. A very interesting fact here, however, is that those Bitcoins have not moved once since this happened. This gives rise to the possibility they can be recovered. In fact, I’m offering a bounty of 1000 BTC for information which leads to the recovery of the stolen coins.
If you happen to be the perpetrator of this crime, and want to send the coins back no questions asked, then you can simply send them to this address:
1KNi4E4MTsF7gfuPKPNAbrZWQvtdQBTAAa
If they are returned, then we will assume that no harm was meant and will not take any action to reveal who you are. If not, well, then I suppose the entire community will be looking for you.
Some may ask why we didn’t report this to the authorities when this occurred, and the answer is that we just didn’t know what happened, didn’t want to cause panic, and were unsure who exactly we should be contacting. At one time we had a open communication with Secret Service Agent Shaun Bridges on an unrelated matter, but I think we all know what happened with him – so he was no longer somebody we could report this to. Recently I attempted to contact the Miami FBI office to report this, but they instead directed me to report it on the I3C website. I’ve not heard anything from them.
I think the only real people who can assist with this are the people of the Bitcoin community itself.
Trades and withdrawals will be suspended on the site indefinately until some sort of resolution can be made.
Here are our options:
1. We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements.
- or –
2. Somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.
- or –
3. If somehow we are able to re-aquire the stolen funds, then we allow all withdrawal requests to process.
I’m obviously open to any other ideas people may have on this.
If you have information, you can email [email protected]
– Update 2016/01/15 7:31pm –
I will be posting transaction ID’s for other alt coins soon. Updates will be appended to this post.
We are clearing out the order books for now and placing all funds back into user accounts.
Because of the phishing attempt earlier this week, we are performing a forced password reset on all accounts upon next login.
We are getting some helpful information to our reward email and want to thank all who are helping to find the culprit. The vast majority of our users want the Cryptsy exchange to continue operating.
Many are suggesting other options other than the 3 mentioned above:
4. Spread the loss to all users in the system and allow trades to continue.
5. Restrict withdrawals on short balanced coins, allowing withdrawals on a first come, first serve basis upon availability.
6. Place existing user balances of BTC, LTC into a frozen state and release funds as they become available from fees collected.
7. Find an investor or group who wish to invest into the operations or provide a loan.
In any case, it is our intent to get every user their funds. Depending on what option or combination of options we end up doing, this may take some time.
I’m seeking known leaders in the community who want to participate in an advisory board on how we can keep Cryptsy operational for the users.
– Update 2016/01/16 12:38am –
Here are the transactions from the LTC wallet:
http://ltc.blockr.io/tx/info/61e61a63f35c951a16870df9e0a34df462ee473fde819d134da9485d2e7d8f44
They moved about a year later, so that movement may help with tracking
– Update 2016/01/17 9:51pm –
Additional BTC transactions taken from another wallet on the same day:
https://blockchain.info/tx/e68f52a38f58e71b951a08650e20aea3f62f7331a3f548e99181f6dbf1cc1d51
https://blockchain.info/tx/48721871b11f716688fcf80a91a5c7586a1dddee83d90b84b564f3f29e11504c
https://blockchain.info/tx/790aa7ec2678552c88cf95110c0df4bcc16a72b8f7e6f331292b977cc6e481df
https://blockchain.info/tx/e8bb46bc6ea5f4580dd2b73f5d6a116e9023c84eb7c0fd4f34bcef3aca606fad
https://blockchain.info/tx/f3998a7e2e8b451106327d2c6e7f73ba58c2fd54b4bb3595b18a2d76e7d15f44
– Update 2016/01/18 2:29am –
BTCD:
http://explorebtcd.info/tx/bcc7a0faf66461840d5758c1cbeac9936f5fcb731145d6a6c51f029c530d41fb
http://explorebtcd.info/tx/a15af4d914e4f9395ae02b146077bf7f059cca299d001597b283768d6986435d
X11: https://chainz.cryptoid.info/xc/tx.dws?198610.htm https://chainz.cryptoid.info/xc/tx.dws?198611.htm https://chainz.cryptoid.info/xc/tx.dws?198608.htm https://chainz.cryptoid.info/xc/tx.dws?198609.htm
– Update 2016/01/19 10:08pm –
The following wallets have been opened for withdrawals:
007 42Coin Acoin Aegis Aiden AlienCoin AlphaCoin AmricanCoin AppleBytes Agentum AsiaCoin AsicCoin Axron BancorCoin BatCoin BattleCoin BBQCoin BetaCoin BitBay BitGem Bitshares Bitstake BlackCoin BoostCoin BottleCaps Bytecent ByteCoin CacheCoin CAIx CashCoin CheckCoin CinderCoin CinniCoin Clams CoinMagi ContinuumCoin CosmoCoin CounterParty CrackCoin CraftCoin DamaCoin DevCoin Diamond Doubloons Ducknote e-Gulden ElephantCoin Ether Expanse EZCoin
We will be opening more wallets over the next couple days.
Western Canadian Hempstar
Welcome to the new world order.
Rebecca Reeve - Marjory’s World, 2012
It’s important for little girls to know not every story has to be a love story and for boys to know that soldiers aren’t the only ones to triumph in war.
Guillermo del Toro (via maxkirin)
Rulz 4 Life
Yuh’know… I think these are all pretty reasonable.
Trudeau explained, “I understand that some of you do not agree with this move,” said Trudeau speaking to members of the liberal party, “However, no one can argue that marijuana is grown in every region of Canada, unlike maple trees. I realize the maple producers of Canada may be upset, but there are a lot more marijuana producers than maple syrup producers in this country and it’s about representing the most people possible across this great nation, isn’t it?”
Growing 10 Foot Tall Tomato Plants In Straw Bales
If you like Tomatoes, then you’ll want to seriously consider growing them in straw bales. They make the perfect growing environment for every type of vegetable & herb you could ever want to grow. And if you’re interested in growing 10 foot tall tomato plants, then look no further… this is your new growing method.
This highly productive straw bale garden is laid out into five parallel rows with vertical growing supports running along the length of each row. Make sure you check those supports out now, as they’re about to disappear!
Check out this timeline of photographs displaying how well you can grow tomatoes in straw bales. These tomato plants are huge!
Don’t miss the end.. you won’t believe it!
Here’s some healthy plant growth just a short while later:
Tomato plants, sunflowers and melons growing their way up the supports:
Here you can see the watering system, also running the length of the rows to make watering much easier:
Sunflowers are in bloom and melons just hanging out:
A cool shot peeking through the melons:
These tomato plants are getting EVEN bigger:
…AND BIGGER…
10 foot tall tomato plants being harvested! The smile says it all!
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Download The Straw Bale Gardening Guide Here
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