21 BTCSilk Road withdrawal exploit (James Zhong) (2012)
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In plain words
Nine fake Silk Road accounts and 140+ rapid withdrawals tricked the marketplace into releasing about 50,000 BTC.
What happened
Nine fake Silk Road accounts and 140+ rapid withdrawals tricked the marketplace into releasing about 50,000 BTC.
What happened to the coins
Seized by US authorities on 9 Nov 2021 (about 50,676 BTC); Zhong pleaded guilty to wire fraud in 2022.
See also
- Hardware walletA hardware wallet is a small device that keeps your private keys offline and signs transactions inside itself. Even if your computer is infected, the keys never leave the device.
- Seed phraseA seed phrase is a list of 12 or 24 ordinary words that can recreate all the keys of a wallet. Whoever has the words has the bitcoin, so write them on paper or metal and never type them into a website.
- Proof of reservesAn exchange's attempt to show it holds the customer coins it owes.
- Hot / cold walletHot: keys on an internet-connected device. Cold: keys kept offline.
References
- archive.ph archive.ph
- cnbc.com cnbc.com