Silk Road 2.0 Reports Bitcoin Theft

According to reports from a number of sources close to the Silk Road 2.0, the site and its administrators have been subjected to a Bitcoin theft valued at anywhere between two to three million dollars USD.

Although on the surface it looks like your standard hack-and-jack, there are numerous reasons to suspect that at the very least it was an inside job, save for the possibility they simply did it themselves. Defcon, one of the leaders of SR 2.0, has told the media that the hackers were able to exploit the “transaction malleability” flaw in Bitcoins, a well known issue that has also plagued websites like the MTGox prior to this event.

He then posted what he believes are the names and identities of the attackers, including where they live and the last IP they were traced to, asking members of the underground drug trading network to submit any information they have which will help bring those responsible to justice.

Using Silk Road 2.0, or its predecessor, was always a risky affair, especially as the vast majority of transactions were for illegal goods and generally paying customers had no assurance that the money they forked over was for exactly what they wanted. They certainly never got to see the product before purchasing. It’s now possible that Silk Road 2.0 was a set up all along and this is the reward.

“This attack hit us at the worst possible time. We were planning on re-launching the new auto-finalize and Dispute Center this past weekend, and our projections of order finalization volume indicated that we would need the community’s full balance in hot storage,” Defcon said in announcing the attack.

It’s unlikely anyone but the FBI will even look at this case, and even then it’s pretty much 100% impossible for anyone who was involved with the online marketplace to expect to be reimbursed for their losses.