Bitcoin heist going down right now, and you can watch in real-time

Bitcoin heist going down right now, and you can watch in real-time

Bitcoin marketplace and ‘the eBay of drugs’ The Silk Road was taken down by the FBI. Just after the black vans took Silk Road head honcho [Dread Pirate Robberts] away, a new Bitcoin marketplace came onto the scene called Sheep Marketplace. Sheep Marketplace closed after revealing that 5400 bitcoins – or $5.8 million USD were stolen by the user EBOOK101 by exploiting a bug in the Sheep site.

Over this last weekend, it was revealed this bug in the Sheep Marketplace site wasn’t responsible for the loss of 5,400 coins, but instead 96,000 BTC, or $100 million USD, making this one of the largest thefts of all time.

Whoever was responsible for this theft didn’t make a clean getaway. Because the Bitcoin block chain records the history of every transaction, laundering bitcoins is harder than it seems. The most common method is to ‘tumble’ the bitcoins – sending them through multiple wallets, combining and recombining them, until tracking groups of bitcoins just becomes too hard.

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