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Bitcoin glitch wipes out Silk Road 2.0, is the end near?

Silk Road 2.0 breached by hackers, millions in bitcoin stolen.

Published Fri, Feb 14 2014 4:08 PM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

The underground Silk Road 2.0 website was reportedly hacked and those responsible ran off with an estimated $2.6 million for their efforts.

Bitcoin glitch wipes out Silk Road 2.0, is the end near? | TweakTown.com

"I am sweating as I write this... I must utter words all too familiar to this scared community: We have been hacked," Silk Road 2.0 administrators posted on a forum. "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."

Although Defcon, the admin who posted a message on the Silk Road 2.0 forums didn't post an exact figure taken, security experts believe 4,400 coins - the equivalent of close to $2.6 million - was taken.

The original Silk Road successfully operated in the shadows before drawing federal attention, though Silk Road 2.0 never had the same luxury. However, the bitcoin exploit also recently ravaged several bitcoin exchanges, showing the digital currency has significant security issues.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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