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$5 million worth Bitcoin [BTC] stolen from Bitmain’s Binance custodial wallet; transferred to Bittrex

Priya

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$5 million worth Bitcoin [BTC] stolen from Bitmain's Binance custodial wallet; transferred to Bittrex
Source: Unsplash

Bitmain, one of the largest Bitcoin mining company and the biggest ASIC chip producer in the world, has requested a jury trial at the United States District Court Western District of Washington at Seattle. This is in correlation with the Bitcoin [BTC] funds stolen from Bitmain’s Binance wallet.

According to the lawsuit, over 617 BTC [approximately] was stolen from the wallet in April 2018, when the price of Bitcoin was close to $8,935. The mining company has not yet identified the perpetrator, and addressed the hacker as John Doe in the lawsuit.

The Bitcoin mining company has alleged the hacker of purposely and intentionally accessing “a protected computer without authorization”, with the intention of gaining access to Bitmain’s Binance wallet. This action has resulted in the company incurring a loss of over $5 million.

The lawsuit also stated:

“As part of the scheme to fraud and theft, John Doe also knowingly transferred the Bitcoin he/she stole from Bitmain’s custodial wallet to an account on the Bittrex Seattle-based trading platform. John Doe’s unauthorized access and scheme to defraud was across state lines and accomplished using the Internet, which is used in interstate and foreign commerce and communications.”

Bitmain further accused the perpetrator of converting the stolen Bitcoins to MANA tokens and other cryptocurrencies at an inflated price, through Bitmain’s wallet. However, the market size of MANA was too small for the hacker to inflate the price of the token. This led to the conversion of the Bitcoins to Ethereum, which was later on used to buy the token.

Events of the hack | Source: Scribd

Events of the hack | Source: Scribd

It is also reported that the perpetrator controlled both sides of the trade of MANA at a deflated rate, selling through Bitmain’s wallet and purchasing through a different account on Binance.



Binance wallet | Source: Scribd

Binance wallet | Source: Scribd

Bitmain claimed:

“Through his unauthorized access to Bitmain’s digital wallet and market manipulations, John Doe was able to transfer or “sell” that MANA into Bitmain’s digital wallet at an artificially inflated set of prices that range between approximately $0.1997 and $033953 per MANA. This represented a 70 to 192 percent increase over the market rate that MANA had been trading”

They further stated:

“He/she transferred that BTC out of the John Doe’s Binance wallet and ultimately into a digital wallet on the Bittrex cryptocurrency trading platform.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] will be vulnerable to quantum computing if we’re not prepared, says Andrew Poelstra

Biraajmaan Tamuly

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Bitcoin will be vulnerable to Quantum Computing without preparation, indicates Blockstream Researcher
Source: Pixabay

Security is an important aspect of every crypto-asset and Bitcoin [BTC] is often dragged into debates on whether the blockchain is protected from hacks or vulnerable to certain technological developments.

In a recent episode of whatbitcoindid, Andrew Poelstra, the Lead Researcher at Blockstream, was asked about whether Quantum Computing was a genuine threat to the existence of some Bitcoin on the current blockchain.

Poelstra indicated that the threat was evident, but it was still a long way off from being practical in the current technological field. He mentioned that he expected quantum computing to come into play against the security of Bitcoin in “maybe less than 15 years” and said that he would be really surprised if “it was less than 25 years”.

Poelstra said that it was necessary to take actions in the current scenario for post-quantum systems because he believed that without any preparation for the impending technological aspect, it did not matter how the future rested. Without preparation, the community was going to be blindsided, he said.

He stated,



“It’s important now that we started working on standardization and exploring ideas and exploring what Bitcoin is going to look like in a post quantum world but in the current scenarios there were no candidates for post quantum schemes that would be reasonable to deploy them in a Bitcoin.”

The introduction of quantum computing in the cryptocurrency scenario was a topic which was widely debated among other personalities in the community as well. Mati Greenspan, a prominent eToro Analyst, had started earlier this year that the threat only existed to Bitcoin if quantum computing was available to only one person.

If people or users collectively upgraded to quantum computers, then the Bitcoin miners would upgrade among themselves to protect it from an alleged 99% attack, which is possible with a quantum computer.





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