Feeds

Silk Road admins: Sorry for the hack, we're sorting out refunds

Head of drugs market vows to make good on lost cryptogeld

Protecting against web application threats using SSL

The masterminds of the SilkRoad 2.0 underground market have vowed to pay back all of the funds lost in a recent Bitcoin hack.

Administrator Defcon said that the team behind the darknet market would be donating all commissions it gathers on transactions towards reimbursing funds which were lifted from its escrow account by hackers last week.

"This leadership and this community will not stop until you are completely repaid," Defcon vowed.

"We know you feel defenseless right now. You are naked. Many of you are convinced there is no logical reason any darknet admin would ever fight to get your coins back."

The post puts to rest fears that Silk Road 2.0 would not attempt to relaunch in the wake of last week's incident which saw some $2.7m worth of Bitcoin vanish when an attacker exploited a transaction malleability vulnerability to empty all of the funds from Silk Road's transaction escrow wallet. According to administrators, 26 per cent of Silk Road's active users saw their entire Silk Road account funds wiped out in the attack.

The site has relaunched but has eliminated any central escrow plan (like the one which was hacked.) Rather, users and vendors will have the option of dealing directly with highly-trusted parties or using a reputation-based decentralized escrow system to hold funds pending delivery.

Additionally, the site said that it will launch support and dispute resolution services to help sort out transactions which were thrown for a loop by the attack itself.

Under the plan, Defcon vowed that the management would not collect any commission for itself until users were refunded "even if it takes a year." Or, perhaps more likely, until law enforcement shuts down the marketplace as it did the first Silk Road iteration.

"This is not an ideal climate, but it is the reality of the darknet today. I cannot emphasize strongly enough that every market which uses centralized escrow will fail," Defcon said.

"Centralization makes a market a huge target for attackers, and a huge target for dishonest administrators."

Meanwhile, Silk Road administrators say they are continuing to pore over information they have received on who might have been behind the hack. Defcon said that early indications are that no members of the administration were behind or complacent in the attack. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
Early result from Scots indyref vote? NAW, Jimmy - it's a SCAM
Anyone claiming to know before tomorrow is telling porkies
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Jihadi terrorists DIDN'T encrypt their comms 'cos of Snowden leaks
Intel bods' analysis concludes 'no significant change' after whistle was blown
Home Depot: 56 million bank cards pwned by malware in our tills
That's about 50 per cent bigger than the Target tills mega-hack
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Critical Adobe Reader and Acrobat patches FINALLY make it out
Eight vulns healed, including XSS and DoS paths
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.