BTC-e Hacked? Down for almost 24 hours... suspicious wallet activity

in #bitcoin5 years ago (edited)


There is a lot of discussion over the past day about the possibility that one of the oldest most trusted cryptocurrency exchanges BTC-e has been hacked. I personally have been a user there since 2011 and there is no exchange I would recommend more. It existed right in that sweet spot of being big enough to be efficient and have good trading volume, but not so big it would be an irresistible target to hackers. Additionally there were lots of rumors that the exchange was tied to some very powerful individuals which would create great disincentive for attackers to go after it.

Unfortunately at this time I am not very certain about their winning record preventing a centralized compromise of their exchange being maintained. It is not unprecedented that they have gone down for this period of time or longer for unscheduled maintenance, but there are a lot of circumstances this time which add additional suspicion to the circumstances. It is true that they may have a lot of work to do in preparation for the August 1st Segwit implementation into Bitcoin along with potential forks, but something like this would have been announced beforehand. The official BTC-e Twitter account claims this is simply unscheduled maintenance activity but there is sufficient reason to suspect this may not actually be the case.

The main piece of evidence of a hack is what is reported to be a BTC-e wallet address which has transactions consistent with a Bitcoin mixing process where the coins are sent out in many smaller transactions and later again consolidated to conceal the source and outputs. This activity can not be explained under the rubric of maintenance if it is indeed the address to the BTC-e wallet.

As you can see the above listed address has an extraordinarily large balance for anyone other than an exchange with activity consistent with a coin mixer going on until the time of this posting.

Main remaining output balance of the above address:

This, if it is in fact BTC-e's wallet address, which seems to remain unconfirmed at this time is fairly irrefutable evidence that either the exchange was compromised or the controllers of the wallet have run with the balance. There is no other reasonable explanation for this transaction activity other than trying to obfuscate the end point and origin of the coins.

BTC-e as far as the public knows has only had one major centralized compromise once before on June 11th 2011, and they reimbursed all of their customers 100% for their losses. Unfortunately back then the value of the lost coins were a mere fraction of their modern day valuation, and I don't think this is something they could afford to do this time, nor would it be a wise business move to do anything other than fold at this point. I wouldn't hold out any hopes for reimbursement this time, and any funds not compromised will likely be caught up in bankruptcy court where the largest claimants will have first priority over the remaining funds.

I wish I could be more optimistic about this one, but I think we may have just witnessed the falling of a Bitcoin institution with BTC-e.

UPDATE: Now it is looking like it may be more likely one of the lead people at BTC-e may have been arrested for money laundering, and those in control of the wallet may have ran with the funds.

Could this potentially be related to BTC-e?
"Greek authorities say they have arrested a Russian man involved in $4B laundering operation since 2011"

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Yes. I have been in the cryptocoin community for quite a while as well as a user of BTC-e, and right now the prospects don't look good. Of course people will suspect this as FUD, but I try really hard to not be involved in such things, and am very capable of separating it out from actual evidence which I have presented here to the best of my ability.

This a sad news for us. hope people will get back their money and nobody get loss . Take care

Unfortunately at this point it is looking increasingly clear that BTC-e is gone for good, along with its user's funds.

ericarthurblair is racist he told me he downvoted all my posts because I am a black musim.

I haven't down voted a single one of your posts freak show. You however have gone to the trouble of down voting every single one of my active posts and comments, and even some that have already paid out. Quite a victim you are.

Yup I am the victim of your gang of down voters. Attacking my account out of spite because you are a racist bigot that admitted you downvoted me because of my dyslexia. You came to my blog and abused me then complain when I just repay you in kind. honestly racists like you need to be flagged.

Being critical of your behavior is not abusive. Your behavior is however abusive, you make up whatever you like to justify it. I am pretty sure you are mentally ill. Seek medical treatment.

You came to my blog I didn't come to yours. I was even considering ignoring your account but you just won't shut up like a whiny little bitch you cry and cry. Shut up you stupid cunt stay the fuck out of my business and maybe I will forget you. I have other more important people to fuck with. Just so you know I have been nice to you and didn't include you on my list as I do not think you are part of that gang but wow you are a total cocksucker and maybe part of it. Should I include you on my comment which will be targeted at bot flagger victims that have a vested interest in flagging those that flagged them or not you decide? mute me or reply with more snark it is up to you. Here is the post below I will spamming so do you want to join this list or not?(Please note I didn't include you in the first test comments)

"These bot farmers are attacking you @"accname" just go to their account and flag every one of their posts and comments.

Here is the list you need to downvote they will attack you until you are negative like me flag them with me and tell others to do the same we can knock them down from there free speech hating ways."

Your little threats don't scare me you lunatic. Do whatever you want. I am not afraid of a psycho with a keyboard. Go ahead and waste your life hating people to whom you are inconsequential to. Hopefully you enjoy swimming in rage and insanity because that list of yours is growing fast. Pretty soon it will be a full time job.

Haha Ok I will add you to it then. Writing a bot is not a full time job but fine whatever. I think you will find my reaction are totally rational , measured and calculated. The fact you are using these terms "lunatic", "rage" "insanity" and "psycho" makes me happy. What do you think it is abnormal to carry on when you and your friends smashed this account? Well that wasn't my doing that was yours and me not rolling over but taking actions to counter the attacks is insane only if you are pussy, But I am not a pussy so yeah enjoy your lower rating as your friend said to me the thing is I do enjoy it. Will you enjoy it?

I didn't do anything to you except point out your account status is of your own making and a result of your insane behavior. There is no secret cabal of people meeting to plot how to destroy banjomad, you are not that important. Just a bunch of individuals who think you are an insane abusive asshole.

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