Cryptsy on Verge of Bankruptcy After $7.5m Bitcoin Theft

Popular cryptocurrency exchange Cryptsy is on the verge of bankruptcy after the startup admitted that it had fallen victim to an online heist in July 2014, during which a total of $9.58 million-worth of Bitcoins and Litecoins. The company has been left with outstanding liabilities of around 10,000BTC – approximately $4.15 million – which, if not met, could result in the business winding up.

“About a year and a half ago,” a blog post from Cryptsy reads, “we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies.”

“After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit,” the post continues. “This Trojan had likely been there for months before it was able to collect enough information to perform the attack.”

The Trojan was able to steal around 13,000BTC ($7.5 million, based on the exchange rate at the time) and 300,000LTC ($2.08 million).

Cryptsy says that it did not disclose the theft at the time as it believed that it had enough cyptocurrencies in its reserve to make up the shortfall, supplementing that with its own profits. The site, though, has now failed to meet its outstanding liabilities. Unless Cryptsy can recover the stolen funds or can find a buyer to cover the shortfall, the company is set to declare itself insolvent.

Image courtesy of Bloomberg.

Silk Road Reloaded Moves to Obscure I2P Network Over Tor

Silk Road Reloaded, the latest version of the infamous darknet black market, has eschewed the Tor network for the little-known but more secure I2P network

Silk Road, its clones, and its successors alike have opted for Tor as their network of choice, but concerns over the level of anonymity the network provides, magnified by Edward Snowden’s revelations concerning the NSA’s PRISM spying program, have persuaded this latest iteration of Silk Road to move to I2P.

Silk Road Reloaded, unlike its originator, accepts cryptocurrencies Litecoin, Darkcoin, Anoncoin, and Dogecoin, as well as the traditional Bitcoin. Transactions made in currencies other than Bitcoin will be converted to Bitcoin through the site’s proprietary wallet.

The new service is said to be rather barren at present, but is expected to attract more activity over the coming months.

Expedia Accepts Bitcoins, as Some Retailers Remain Unsure

Popular travel site Expedia recently confirmed it will begin accepting bitcoins, giving customers the opportunity to book their next hotel visit with the digital currency.

Expedia customers booking accommodations will see bitcoin as a new payment option, and will be ushered to a unique payment site.  Transactions authorized directly from each customer’s bitcoin wallet, and Expedia will provide confirmation.

There is growing interest from companies willing to test bitcoins as long-term payment options, and are opening up communication to learn more from one another.

A growing number of restaurants and pubs also are dabbling with bitcoin, so it’s worth taking a look at your favourite eateries.  Popular online restaurant ordering service Takeaway.com now accepts bitcoins from customers, if you are hungry and want to place orders over the Internet. U.S. satellite TV company Dish Network said it would accept bitcoin payment from subscribers, indicating a major change.

However Ink Factory, which first embraced bitcoins in November 2013, recently noted that bitcoin might not be the payment method of the future – but confirmed that the cryptocurrency is still only in its infancy.  The company isn’t throwing in the towel on bitcoin, and is giving away 1/10th of a bitcoin, currently valued around £41, so its customers can become more familiar with bitcoin and how to use it.

The D Las Vegas Casino Hotel accepts bitcoins at the front desk, restaurants, gift shop, and on the casino floor.  A bitcoin ATM machine was also rolled out, so casino visitors will be able to access their online wallets.

Retailers and other companies might accept bitcoin, but expect the turbulent cryptocurrency to also endure a long infancy from consumers.  If you’re a bitcoin supporter, then it’s willing to send an email, tweet, or message to your favourite retailers to learn more about any bitcoin plans they might have in the future.

AMD Radeon GPU’s In Short Supply Due To Mining Popularity Boom

Cryptocurrencies are literally one of the coolest things on the planet right now, and just like a gold rush people are flocking in big numbers to strike it rich by mining the coins. The main component of doing such a thing is AMD graphics cards and while they can be mined well on Nvidia hardware, AMD hardware performs significantly better at the task.

The price of BitCoin, LiteCoin, WorldCoin and no doubt many others is booming fast as the scene heats up, people are running ASIC miners, cooking GPU’s, building epic mining rigs, all in the name of turning some computer time into cash, some with greater success than others.

Personally I think most mining systems are a waste of time these days, but that hasn’t stopped people trying to get in on the action. Of course the real winner here is AMD and I can bet they’re not upset about the recent boom in popularity for their GPU’s.

Thank you Brightsideofnews for providing us with this information.