Bitcoin fees are skyrocketing

Enlarge / Rising demand has caused Bitcoin’s transaction fees to skyrocket. (credit: Timothy B. Lee, using data from Blockchain.info) The cost to complete a Bitcoin transaction has skyrocketed in recent days. A week ago, it cost around $6 on average to get a transaction accepted by the Bitcoin network. The average fee soared to $26 on Friday and was still almost $20 on Sunday. The reason is simple: until recently, the Bitcoin network had a hard-coded 1 megabyte limit on the size of blocks on the blockchain, Bitcoin’s shared transaction ledger. With a typical transaction size of around 500 bytes, the average block had fewer than 2,000 transactions. And with a block being generated once every 10 minutes, that works out to around 3.3 transactions per second. A September upgrade called segregated witness allowed the cryptographic signatures associated with each transaction to be stored separately from the rest of the transaction. Under this scheme, the signatures no longer counted against the 1 megabyte blocksize limit, which should have roughly doubled the network’s capacity. But only a small minority of transactions have taken advantage of this option so far, so the network’s average throughput has stayed below 2,500 transactions per block—around four transactions per second. Read 7 remaining paragraphs | Comments

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Bitcoin fees are skyrocketing

Bitcoin value falls off cliff after $77M stolen in Hong Kong exchange hack

The value of bitcoins plummeted 20 percent after almost 120,000 units of the digital currency were stolen from Bitfinex, a major Bitcoin exchange. The Hong Kong-based exchange said it had discovered a security breach late Tuesday, and has suspended all transactions. “We are investigating the breach to determine what happened, but we know that some of our users have had their Bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up,” said the company on its website . Read 7 remaining paragraphs | Comments

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Bitcoin value falls off cliff after $77M stolen in Hong Kong exchange hack

Ransomware decryptor

If you or someone you love has been hijacked by Coinvault ransomware — malware that encrypts your data and won’t decrypt it unless you transfer Bitcoin to criminals — Kaspersky may be able to help you ( via Hacker News )

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Ransomware decryptor

Silk Road Reloaded Ditches Tor for a More Anonymous Network

Trying to shut down Silk Road, and any of its many-headed hydra reiterations, seems to be the ultimate lesson in futility. According to Motherboard , a new version of the online black market, called Silk Road Reloaded, launched today on the I2p anonymous network, dealing with several altcoin currencies. Read more…

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Silk Road Reloaded Ditches Tor for a More Anonymous Network

Mt. Gox Found Over $100 Million In Bitcoin In a Random Wallet

Bitcoin is big money. When Mt. Gox went belly up , hundreds of millions in bitcoin up and disappeared. Now, the troubled exchange just happens to have stumbled into 200, 000 ‘coin it thought was lost , or roughly 116 million dollars. Read more…        

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Mt. Gox Found Over $100 Million In Bitcoin In a Random Wallet

Bitcoin Exchange CEO Arrested for Money Laundering

The Justice Department has formally charged the CEO of Bitcoin exchange Bitinstant.com with running an illegal wire service , and according to reports by the New York Post’s Kaja Whitehouse , he’s just been arrested at JFK. Uh oh. Read more…        

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Bitcoin Exchange CEO Arrested for Money Laundering

Apps come bundled with secret Bitcoin mining programs, paper over the practice with EULAs

Researchers at Malwarebytes have discovered that some programs covertly install Bitcoin-mining software on users’ computers , papering over the practice by including sneaky language in their license agreements allowing for “computer calculations, security.” The malicious programs include YourFreeProxy from Mutual Public, AKA We Build Toolbars, LLC, AKA WBT. YourFreeProxy comes with a program called Monitor.exe, which repeatedly phones home to WBT, eventually silently downloading and installing a Bitcoin mining program called “jhProtominer.” So now that we have proof that a PUP is installing miners on users systems, do they do it without ever letting the user know? Well not exactly, their EULA specifically covers a section on Computer Calculations: COMPUTER CALCULATIONS, SECURITY: as part of downloading a Mutual Public, your computer may do mathematical calculations for our affiliated networks to confirm transactions and increase security. Any rewards or fees collected by WBT or our affiliates are the sole property of WBT and our affiliates. Their explanation is basically the purpose of Bitcoin Miners and that they will install this software on the system, run it, use up your system resources and finally keep all rewards from the effort YOUR system puts in. Talk about sneaky. In my opinion, PUPs have gone to a new low with the inclusion of this type of scheme, they already collected information on your browsing and purchasing habits with search toolbars and redirectors. They assault users with pop-up ads and unnecessary software to make a buck from their affiliates. Now they are just putting the nails in the coffin by stealing resources and driving user systems to the grave. Potentially Unwanted Miners – Toolbar Peddlers Use Your System To Make BTC [Adam Kujawa/Malwarebytes] ( via /. )        

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Apps come bundled with secret Bitcoin mining programs, paper over the practice with EULAs

Cyber-crooks mail heroin to Brian Krebs

Brian Krebs is a security expert and investigative journalist who has published numerous ground-breaking stories about the online criminal underground, much to the consternation of the criminal underground.        

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Cyber-crooks mail heroin to Brian Krebs

Drug Enforcement Agency Seizes First Bitcoins From Silk Road Dealer

The Drug Enforcement Agency has seized 11.02 Bitcoins —about $800—from a drug dealer in South Carolina who had been using Silk Road. It’s the first (known) time the government has taken control of the virtual currency like it were property or real-world cash. Read more…        

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Drug Enforcement Agency Seizes First Bitcoins From Silk Road Dealer

In wake of Liberty Reserve bust, Mt. Gox will require user verification

On Thursday, the world’s largest Bitcoin exchange, Mt. Gox, announced that it would require all users to “be verified in order to perform any currency deposits and withdrawals. Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.” The company did not provide any explanation about why it was imposing this new requirement, but it did say that it would be able to process most verifications within 48 hours. The move comes two days after federal prosecutors went after Liberty Reserve , another online currency that had notoriously poor verification. (In court documents, a federal investigator in that case included an address of “123 Fake Main Street, Completely Made Up City, New York” to create an account that was accepted.) It also comes two weeks after the Department of Homeland Security started investigating Mt. Gox over the possible crime of money transmitting without a license. Read 1 remaining paragraphs | Comments

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In wake of Liberty Reserve bust, Mt. Gox will require user verification