Quote from: ginko-B on February 20, 2014, 03:43:59 AM

Quote from: Spekulatius on February 20, 2014, 03:08:36 AM

Quote from: BitThink on February 20, 2014, 01:33:35 AM

May I ask whether my understanding of this issue is correct?

The white hat exploited the XCP bug and get 35K XCP from the exchange and then deposit it back and sell all them to the wall and withdrew part of the BTC he got. Now the bug was fixed and the 35K XCP was rolled back.

If my understanding is correct, then every XCP bought during the dump belongs to the 35K invalid XCP from the white hat. Therefore, after client updates, those XCP will disappear. Then how come people are still asking whether the dump stands or not? The XCP has been rolled back, so the BTC balance has to be rolled back too.

EDIT After a second thought, I realized that the dump just happens in the exchange's trade book and nothing happened on the block chain. Therefore, whether they are legit or not all depends on the exchange.

Quote from: busoni on February 19, 2014, 10:11:38 PM

Quote from: led_lcd on February 19, 2014, 09:56:47 PM

Was it mentioned if the hacker/white hat was going to return the BTC that they withdrew?

If they don't return that BTC, Poloniex would be out of pocket in a huge way.

I hope we can pull together an adequate bounty for the white hat such that they will return all BTC.

He said he would, but I haven't heard from him since he explained the vulnerability. My guess is he is waiting on the block chain rebuild to see where he stands with XCP.

If all the XCP gets returned to the Poloniex account, then the dump will stand, and he can keep the BTC. If not... then let's hope he returns it, and I'm going to have to roll back some trades.

Quote from: jimhsu on February 20, 2014, 01:22:28 AM

Some sort of resolution to make the most parties happy still has to occur on poloniex before trading can be opened up. The most agreeable resolution would be for the hacker to return the BTCs, all trades after block 286712 to be cancelled, and the BTC refunded as appropriate. I don't know about the XCPs withdrawn from purchasing at the dump.

Again I should emphasize that such incidents are hardly unique to any coin. Bitcoin had similarily serious issues at a far more mature stage, and Nxt just has a critical issue last week despite a much larger market cap.

So now the exchange is out of ~30 BTC? If the white hat/hacker doesnt return the loot it is up to them to cover the loss or push it onto their customers, if they want to continue to make business with Counterparty users and crypto in general I would strongly advise them to cover it.

The Buyers of todays cheap XCP are of course happy because their cheap Bids were filled.

The Sellers, which also include a random amount of buyers it seems, incase the attacker took from Poloniex' XCP wallet indescrimately of whether the coins belonged to buyers or sellers, are not so happy because their XCP were sold against their express consent. On the other hand, with the recent upheavel and concern surrounding the attack, the protocol and the devs decision to roll back everybodies balance like that, the price will most likely take a plunge before things return to normal. So the sellers may proof very lucky that they got a comparatively good price before we go back down.

Hey Spekulatius, out of curiosity, where did you see the 30 BTC figure?

After re reading some pages back it seems more like he made off with around 70 BTC and left 35 BTC in his account.

Quote from: kdrop22 on February 19, 2014, 09:13:41 PM

Quote from: flayway on February 19, 2014, 09:02:02 PM

Quote from: halfcab123 on February 19, 2014, 08:20:34 PM

What up with the massive dump ?

But still i dont understand where that 35k coins come first to Polo..?

Those 35K coins, were the XCP deposits in Poloniex central account. The white hat hacker, withdrew these coins from the central address and deposited it back to Poloniex and sold then on the exchange for a low price.
The order depth in Poloniex was around 100 BTC. So, the hacker took these BTC, but left some of them in the exchange.

Quote from: busoni on February 19, 2014, 05:29:36 PM

I messaged PhantomPhreak, but if any XCP developers are online right now, please message me right away.

The attacked left 35BTC in his account. He has been very cooperative so far and has asked for an address to return the BTC he took. I'll keep you all updated.

emphasises by me.