Bitcoin Buzz

SCMP’s Bitcoin Daily Report: Silk Road 2 picks up the pieces

PUBLISHED : Tuesday, 18 February, 2014, 1:37pm
UPDATED : Tuesday, 18 February, 2014, 1:37pm

Payback for Silk Road 2 customers

Controversial marketplace Silk Road 2 has pledged to refund customers after it said 4,500 bitcoins were stolen in a major hacking attack, wiping out US$2.5 million of customers’ funds.

In a statement posted on Reddit, it said: “This leadership and this community will not stop until you are completely repaid…We are committed to getting everyone repaid even if it takes a year.”

And in an attempt to rubbish rumours regarding the nature of the attack, it added: “We are deep into the investigation of data surrounding the attacks, and it there is absolutely zero evidence of any staff member being involved. We will publish more information as we determine its accuracy, thank you to all who have contributed tips on the attackers’ identities.”

Book deal in offing

Global publisher Penguin Random House has signed a deal to publish a book about bitcoin and Silk Road next year. Penned by Brian Patrick Eha, Walking the Silk Road will attempt to explore Silk Road at its core and the wider impact of bitcoin’s growth on the global economy.

Mt Gox’s price rebound

Japan’s Mt Gox bitcoin price is rallying after it crashed to US$220 a coin over the weekend.

By far the worst performing major index, it slumped to its lowest level since November last year.

Once a darling of bitcoin users, Mt Gox is now seeing a US$350 price difference against other leading exchanges.

Before now, it could boast that it was one of the top, if not the top, trading platform for bitcoin. Customers paid a premium price to use the platform because it was deemed one of the more volatile exchanges.

A protest outside the headquarters of Mt Gox initiated by angry customer Kolin Burges is ongoing. He seized the initiative on Friday, flying to Japan from London to protest outside its Tokyo headquarters.

Burges, unhappy with the lack of information regarding Mt Gox’s withdrawal problems, attempted to confront Tibanne chief executive Mark Karpeles, which runs the beleaguered trading platform.

A poll of 3,000 Coindesk readers on Monday suggested 68 per cent of Mt Gox customers, like Burges, are waiting for their withdrawal requests to be processed.

Mt Gox was unavailable for comment when the Post contacted the exchange.

Latest bitcoin price: US$632.88 at 13.28 on Tuesday based on prices from BTC-e and Bitstamp

Source: Coindesk