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Someone on bitcointalk.org [1] noticed that approximately 42,000 BTC (currently worth about US$4.3 million) was just transferred out of one of Instawallet's acc

Someone on bitcointalk.org [1] noticed that approximately 42,000 BTC (currently worth about US$4.3 million) was just transferred out of one of Instawallet's accounts [2]. No idea whether the transaction was Instawallet's doing, or the attacker's. [1] https://bitcointalk.org/index.php?topic=164143.msg1716794#msg1716794 https://bitcointalk.org/index.php?topic=164143.msg1716794#ms... [2] http://blockchain.info/address/1LrPYjto3hsLzWJNstghuwdrQXB96KbrCy http://blockchain.info/address/1LrPYjto3hsLzWJNstghuwdrQXB96...

dobbsbob 14y ago
UH OH Says it was sent FROM cold storage that's not a good sign.
- deleted 14y ago
  [deleted]
- beala 14y ago
  If it's actual cold storage, then it's probably just them taking precautions. The whole point of cold storage is to make the wallet immune to a server breach. But who knows? It sounds like their security was sloppy.
  - dobbsbob 14y ago
    Edit.. [Apr-1 10:30 CET] Bitcoin-Central and Paytunia update: Our customer's bitcoins and euros are safe and will not be affected by the security breach. We have taken the websites off-line for proper investigation. The address 1LrPYjto3hsLzWJNstghuwdrQXB96KbrCy is under our exclusive control. from https://bitcoin-central.net/ https://bitcoin-central.net/ All is fine then I guess
M4v3R 14y ago
It's worth noting that the transfer took place two hours before the site was taken down. That's a really bad sign.
beala 14y ago
Ah wait a minute. That address is worth $4.3m, but the number of coins transfered from Instawallet cold storage is $1.5m. There are three transactions. One is old. Two are new, and only one of the new ones is labeled as "Instawallet Cold Storage".
- waterlesscloud 14y ago
  One of the other addresses in that list has a history of moving around thousands of BTC. Perhaps it's all some sort of behind-the-scenes Instawallet address. http://blockchain.info/address/1BcCo1dNztEjMtzxFTbtQuZEuK1NkvN8q5 http://blockchain.info/address/1BcCo1dNztEjMtzxFTbtQuZEuK1Nk...
  - beala 14y ago
    Very well could be. That address also received a large amount of coins from the cold wallet on the 18th. http://blockchain.info/tx/f0dba606f4d245c49a165035eabe3457949b8c04f33b0af53b17ffece01e9176 http://blockchain.info/tx/f0dba606f4d245c49a165035eabe345794...
angryasian 14y ago
how is bitcoin anonymous if someone is able to find out where money was able to be transferred out of so easily ?
- uiri 14y ago
  You can't prevent double spending without being able to track where individual coins go. So we can know that X BTC went from wallet A to wallet B. Bitcoin is anonymous in the sense of linking owners to wallets. Even if someone asks to send Y bitcoins to wallet C as payment for something, you can't know from the wallet address where the wallet is stored or even if it isn't the wallet of a third party to whom that someone owes bitcoins.

dobbsbob 14y ago

UH OH Says it was sent FROM cold storage that's not a good sign.

deleted 14y ago
[deleted]
beala 14y ago
If it's actual cold storage, then it's probably just them taking precautions. The whole point of cold storage is to make the wallet immune to a server breach. But who knows? It sounds like their security was sloppy.
- dobbsbob 14y ago
  Edit.. [Apr-1 10:30 CET] Bitcoin-Central and Paytunia update: Our customer's bitcoins and euros are safe and will not be affected by the security breach. We have taken the websites off-line for proper investigation. The address 1LrPYjto3hsLzWJNstghuwdrQXB96KbrCy is under our exclusive control. from https://bitcoin-central.net/ https://bitcoin-central.net/ All is fine then I guess

M4v3R 14y ago

It's worth noting that the transfer took place two hours before the site was taken down. That's a really bad sign.

beala 14y ago

Ah wait a minute. That address is worth $4.3m, but the number of coins transfered from Instawallet cold storage is $1.5m. There are three transactions. One is old. Two are new, and only one of the new ones is labeled as "Instawallet Cold Storage".

waterlesscloud 14y ago
One of the other addresses in that list has a history of moving around thousands of BTC. Perhaps it's all some sort of behind-the-scenes Instawallet address. http://blockchain.info/address/1BcCo1dNztEjMtzxFTbtQuZEuK1NkvN8q5 http://blockchain.info/address/1BcCo1dNztEjMtzxFTbtQuZEuK1Nk...
- beala 14y ago
  Very well could be. That address also received a large amount of coins from the cold wallet on the 18th. http://blockchain.info/tx/f0dba606f4d245c49a165035eabe3457949b8c04f33b0af53b17ffece01e9176 http://blockchain.info/tx/f0dba606f4d245c49a165035eabe345794...

angryasian 14y ago

how is bitcoin anonymous if someone is able to find out where money was able to be transferred out of so easily ?

uiri 14y ago
You can't prevent double spending without being able to track where individual coins go. So we can know that X BTC went from wallet A to wallet B. Bitcoin is anonymous in the sense of linking owners to wallets. Even if someone asks to send Y bitcoins to wallet C as payment for something, you can't know from the wallet address where the wallet is stored or even if it isn't the wallet of a third party to whom that someone owes bitcoins.