Topic: Red Alert Blockchain.info down (Read 1149 times)

I understand how it works, but I also understand that I am not guaranteed to have sole direct access to the private keys generated on their site, therefore I am not assured to have sole access to my coins.  The only way to have almost 100% guarantee that you are the sole controller of you private keys is to generate keys on a computer that never sees the internet.  I also use blockchain for a hot wallet and generate keys for storing larger amounts on a computer that never sees the internet.  My point is a healthy dose of skepticism is not unwarranted in bitcoinland.

That said, blockchain has the best system to protect customers, but it is still an online service and user skepticism is warranted when the site goes down unexpectedly.

Edit:  users can keep a copy of their public keys to verify that their funds are still there.  I have done this and verified my funds are still there.

hmm, if i import single key to blockchain address and that address has an amount of BTC. Does blockchain know my address key?

With all due respect, I think you and quite a few others have a misunderstanding how exactly the blockchain.info wallets work.   

I keep most of my funds on paper wallets that were generated on a machine that has never been online.   I keep a hot wallet on blockchain.info with a smaller amount of funds, about the same amount of cash that I am comfortable walking around in public with my physical wallet.

Blockchain.info keeps an encrypted copy of your wallet on their servers.  They do not know your password.  All operations on your wallet are done in your browser, not on their servers - your password is never sent to their server and is instead used on your own machine to decrypt your wallet data kept on their server.  They provide a means to import your private keys from your wallet backup so that you have access to your funds.  The procedure is outlined when you create your wallet.  If you did not pay attention to this when you chose to put funds in your blockchain wallet, it's on you for causing yourself undue stress.

The reason I chose to use blockchain as my hot wallet is that the android app is very easy to use, sends backups to my email when the wallet changes, and there is a very clear procedure how to regain access to my funds using the backup when blockchain.info is offline, which means if blockchain.info disappears and never comes back, I still have my funds.  I tested this procedure myself before putting in any serious amount of money in my blockchain wallet, and I am fully confident that blockchain has not stolen my funds and cannot steal my funds without expending significant resources to crack my password, which would cost more than what I keep in there.

While I am really annoyed with blockchain.info being down, Right now, I have live access to my hot wallet with MultiBit, have conducted two transactions since the outage, and at any moment, I could sweep the remaining funds to a paper wallet to an address with a private key that no person or online machine has ever seen besides myself.

I am not associated with blockchain.info, other than being an appreciative user of their website and wallet service.

Around here people start with an outrageous claim of fraud. Then slowly, very slowly the boring truth comes out. It's stupid, but way more fun. 

Given all the loss of customer funds, I don't blame people for getting antsy, especially when it comes to their money.  For now, I'm just going to go with guilty until proven innocent, because a publicly verifiable blockchain should allow exchanges and wallet services to easily prove their solvency.

They can't steal your funds because they don't have access to your private keys. If you don't keep your own backups, it's theoretically possible for them to lose your coins (albeit unlikely) but they make it very easy to back up your wallet so that this isn't a concern.

I'm perfectly confident that the 1μBTC I was keeping in blockchain.info is safe. 

No need to panic. All the funds are unaffected, as can be verified by anyone who tries to restore their wallet backup into a desktop client, as many have already done. We do not have access to your funds.

We're gradually restoring services and wallets onto the databases.

Thanks,

Andreas

Chief Security Officer
Blockchain

Do you have anything to back your accusations?

Stop spreading FUD. Everyone with decent intelligence is able to get their funds out.

I imported a private key from my wallet.aes.json into Multibit and made a payment just a few hours ago.  I checked all the active address I use in that wallet, and it's all still there.

Don't you think you are over reacting a little? 

I know it's been down almost all day, but jumping the gun and calling them scammers is a little much, or do you have proof otherwise?

well I would be getting your backup right now booting the wallet and moving the funds, they have heavy links to scammers

anyone got their funds back yet ?

They do not have unencrypted copies of your private keys.  They can't run off with your coins unless they password attack your wallet data.

If you read the blog entry following that one, it describes how to use multibit to import your wallet backup.

This is absolutely Red Alert

has blockchain.info now done a runner with funds ?

a message from chief scammer in charge

https://blog.blockchain.com/2014/03/17/current-service-outage/