Disclosure about stolen funds from BitDice.

SebastianJu

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Legendary Escrow Service - Tip Jar in Profile

Quote from: dogedice.me on June 14, 2015, 05:42:16 PM

Hello guys,

As you aware, on March 24 BitDice lost ~145 BTC (more information ca be found here: https://bitcointalksearch.org/topic/m.10875932). We tracked down those coins. 85BTC were blocked on BTC-E by our request. We deeply appreciate their help and cooperation on this case. I kept silence about it while both parties conducted investigation. However, the thief went out public on reddit harassing reputation of BTC-E and impersonating BitDice developer. Here are the links:

https://www.reddit.com/r/BitcoinMarkets/comments/39pxat/btce_stole_100_bitcoins_from_me_and_i_have_no/
https://www.reddit.com/r/litecoin/comments/39rhvs/btce_allegedly_froze_this_customers_account_with/
https://www.reddit.com/r/Bitcoin/comments/39r20v/btce_stole_100_bitcoins_from_me_and_i_have_no/

I will try to say as much as I can without providing any private information about this case until further notice from our attorneys.

There were no dice playing by that user, he didn't win anything - he just stole the funds from the account. Legally it's called embezzlement and fraud. Coins were tracked down to the wallet that belongs to BTC-E. We got in touch with BTC-E and told them what has happened and they started their own investigation and delayed withdrawal of those coins.

I deeply apologize that it harmed reputation of BTC-E. They did what every legal business would have done in this case, that is attempting to seize the theft. And I really appreciate that bitcoin community can help each other in such cases.

At the moment case solved. Coins have been returned to us. On this I would again thank BTC-E for great help.

Regards,
BitDice Casino S.L.R.

Interesting outcome. I didnt think btc-e will comply with such a request. Though i would like to know which proof you had that these coins belonged to a scammer. Was the first withdraw directly sent to btc-e? Or were there different steps? Or did they treat the coins as tainted? I mean its similar to fiat money then and for sure in the future governments will treat coins that way too. Regardless if one likes it.

How did you get the other part back?

arallmuus

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Quote from: tss on June 15, 2015, 01:20:42 AM

-quote snip-

if this is true that he opened an account and was credited 10btc. if he did nothing to hack or manipulate the system to receive the btc once he withdrew them they were rightfully his.

Withdrawing something that you obtained via an error or bug on the site is consider a fraud therefore that is not his. Also that gambling sites is not a charity that give you BTC for you whenever you are opening a new account. Bitdice has emailed the user that stole the BTC before perhaps they could have offered a portion of this if they are returning the whole amount but the user choose to ignore it

P.S : I could be wrong but I did make a new account as well during the BlackJack launch but mine isnt creditted with 10 BTC

Quote from: dogedice.me on March 24, 2015, 05:23:30 PM

I've sent an email to the second guy and await his reply.

.

tss

hero member

Activity: 742

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Quote from: dogedice.me on March 24, 2015, 05:23:30 PM

After release of Blackjack, there was left some test code which adds 10BTC for new accounts. That's was very stupid and I fully accept that.

Quote from: dogedice.me on June 14, 2015, 05:42:16 PM

There were no dice playing by that user, he didn't win anything - he just stole the funds from the account.

if this is true that he opened an account and was credited 10btc. if he did nothing to hack or manipulate the system to receive the btc once he withdrew them they were rightfully his.

arallmuus

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Activity: 2562

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Quote from: ?? on ??

From my perspective it means I won't ever be using BTC-E as an exchange. If they're willing to confiscate user funds without the presence of law enforcement or a court order. You can't just take things into your own hands.

They actually did the right thing by doing this although it harmed their reputation as the thief has posted alot of negative things about them all over reddit and bitcointalk. Every BTC/FIAT exchanger should follow their step and perhaps this could prevent all the hacker from trying to cash the hacked BTC out (if we're lucky to track them anyway)

Quote from: iram1068 on June 14, 2015, 09:16:15 PM

Is this the story about the guy who open up scam accusation to btc-e?

Yes it is, the one who claimed to have their 100+ btc locked up

ausbit

legendary

Activity: 1330

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Happy to hear you got your coins back OP.
What would your options have been if the "hacker" had transferred the coins to a wallet he controlled and not an exchange?

Although i'm not sure i would call the guy that took the coins a hacker, it was more likely that he just happened to be on the site the same time as a bug hit that put 100btc into his bitdice.me wallet.
He was very stupid to just try cash them out straight away and greedy.
Im sure if he had contacted bitdice.me and advised them as to what happened they would have given him a few BTC for his honesty.

NLNico

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Activity: 1876

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DiceSites.com owner

Well, I called it, lol.

That was somehow entertaining. First whole community have their pitchforks ready, how can these fking Russians steal so easily from the small individuals, I KNEW THEY WERE SHADY. Only to found out the guy was actually a thief like BTC-e said. GG. Nice they actually returned it.. I wonder if the reddit thread actually helped for that or was it returned before that (I assume you can only answer this later.)

a1choi

sr. member

Activity: 323

Merit: 254

were you ever able to do anything about the 2nd user that had stolen from you? It seems like you had even more specific information about the user and was going to open up legal recourse.

Would love to hear if there are any updates there.

ticoti

hero member

Activity: 854

Merit: 1000

Wow, it was a strange story with a nice end
congratulations,you can't recover bitcoins everyday

iram1068

member

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Is this the story about the guy who open up scam accusation to btc-e?

waterpile

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Activity: 602

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Quote from: ?? on ??

Interesting story.

From my perspective it means I won't ever be using BTC-E as an exchange. If they're willing to confiscate user funds without the presence of law enforcement or a court order. You can't just take things into your own hands.

It would have been interesting to see your progress seeking a legal case against this thief, as it would have opened yourself up to the possibility of being prosecuted for illegal remote gambling which carries a greater sentencing.

legal action costs alot of money especially if it has to do with the web.. imagine how many days, weeks, yrs. and money to close the case.. I understand what you're pointing out but we don't even know what country does the guy belong to..

jeannemadrigal2

sr. member

Activity: 322

Merit: 250

Interesting to see that scammed coins are not always lost for good. I don't recall another case where coins were returned. Thanks for posting this, I saw the other thread and thought that btc-e was being shady, but this makes more sense. An exchange has a lot to lose in a case like this if they lose trust.

subSTRATA

legendary

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:^)

so this is what all that btc-e stuff was about in the scam accusations section, really didnt expect this sort of outcome.

RHavar

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Quote from: ?? on ??

Anyway, if i remember correctly from his thread, he claims that he won coins fair and square, and now you are accusing him on hacks because you dont want to take the loss.

He admits in the thread he never wagered a thing, and then applies some backwards logic on why it's fair.

GhanaGamboy

full member

Activity: 191

Merit: 100

Dadice Fixed Rate.

Awesome news, as we all know it is very rare to get back stolen coin but you managed it with the help from BTC-E. I did read the guy who done it little story and posted that I thought it never added up and would not be surprised if the thief was lying, seems he was. Well done BTC-E they have just gained my trust more than ever and I'm sure many more feel the same. I would like to know how he managed to do that but for obvious reasons I doubt I will know lol

sherbyspark

hero member

Activity: 910

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Nice to know . This is probably the first case of coins being tracked and stolen coins being returned to the site.

RHavar

legendary

Activity: 1463

Merit: 1886

Didn't see that one coming, what a fortunate ending. Rather slimy of the guy to try drag BTC-E 's name through the dirt when they weren't doing anything but being good citizens.

katerniko1

legendary

Activity: 966

Merit: 1000

great to see you got your coins back im glad it all worked up ok.
so now its all ok with bitdice? hehe
regards.
-Katerniko1

webchris

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Great to hear!

RussianRaibow

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Activity: 616

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I AM A SCAMMER

It is good if you provide an explanation here as well => http://www.reddit.com/r/Bitcoin/comments/39r20v/btce_stole_100_bitcoins_from_me_and_i_have_no/

People are discussing whether you are a part of BTC-e...

dogedice.me

hero member

Activity: 776

Merit: 522

Hello guys,

As you aware, on March 24 BitDice lost ~145 BTC (more information ca be found here: https://bitcointalksearch.org/topic/m.10875932). We tracked down those coins. 85BTC were blocked on BTC-E by our request. We deeply appreciate their help and cooperation on this case. I kept silence about it while both parties conducted investigation. However, the thief went out public on reddit harassing reputation of BTC-E and impersonating BitDice developer. Here are the links:

https://www.reddit.com/r/BitcoinMarkets/comments/39pxat/btce_stole_100_bitcoins_from_me_and_i_have_no/
https://www.reddit.com/r/litecoin/comments/39rhvs/btce_allegedly_froze_this_customers_account_with/
https://www.reddit.com/r/Bitcoin/comments/39r20v/btce_stole_100_bitcoins_from_me_and_i_have_no/

I will try to say as much as I can without providing any private information about this case until further notice from our attorneys.

There were no dice playing by that user, he didn't win anything - he just stole the funds from the account. Legally it's called embezzlement and fraud. Coins were tracked down to the wallet that belongs to BTC-E. We got in touch with BTC-E and told them what has happened and they started their own investigation and delayed withdrawal of those coins.

I deeply apologize that it harmed reputation of BTC-E. They did what every legal business would have done in this case, that is attempting to seize the theft. And I really appreciate that bitcoin community can help each other in such cases.

At the moment case solved. Coins have been returned to us. On this I would again thank BTC-E for great help.

Regards,
BitDice Casino S.L.R.

Topic: Disclosure about stolen funds from BitDice. (Read 1855 times)