Bitcoin Robbery May be the End of the Cryptocurrency

Silk Road 2.0, a black market drug-trading site based on untraceable Bitcoins, reports that 4,474 Bitcoins, valued at about $2.7 million, have been stolen from the site. The virtual currency is encrypted computer code that is stored in a virtual wallet, and only a limited number of Bitcoins are created. The site’s administrator, who goes by the name of Defcon, posted 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.” The coins were apparently stored onsite in escrow.

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