Big stories often take some time to emerge. When they see the light, it’s usually just the tip of the iceberg. Mt. Gox was like this and CryptoRush is just the same. Another leak appeared today, this time from one of the exchange’s support workers.
One month of hacking
DogeyMcDoge has been working for CryptoRush since late February. When looking back on his first month, it’s clear that this was an exciting job to say the least. In only a month’s time, he saw the exchange get hacked twice. On top of that, the owner’s ways of recovering losses was ‘unorthodox’.
“Around the 11th of March, I received a message from Devianttwo: “had something bad happen. All I’m saying.” I was brought into a Skype call and told that we had been hacked. I was shocked. They told me the amount, and I did not sleep well that night.”
The first hacking he witnessed cost the exchange 950 Bitcoins and 2500 Litecoins. A large amount considering CryptoRush is one of the smaller exchanges.
“Someone with an IP from Ukraine. They were looking into it, thought they found the guy. Thought they could get the BTC back. Maybe it was shock. Maybe it was just me being naive. But I believed them.”
When you work at a place like this, you feel responsible about the many customers that place their funds in your hands. Even as a support worker, you’ll feel guilty whenever something like this happens. You know how it would feel if your coins would suddenly disappear. You’ve seen exchanges get hacked before, but this time, you are part of that exchange. So you try to replace that feeling of guilt by something else. Some form of hope in a happy ending. You know it’s naive, but it’s damn well better than accepting the truth and who knows…
The next stage is the so-called solution. Something has to be done, and anything will work as long as people get their money back.
“I was informed of the plan to announce CryptoRushShares, a currency that would pay % fees to holders. And the kicker? Fyrstikken would announce 60% ownership of them. But in the back room?
[3/14/2014 10:48:15 PM]
: he’s helping me gain capital back from share buyers
: he started by announcing 60% shareholding
: but he actually owns only 10%”
I guess it happens often. A ‘small lie’ in order to get things done. Nobody would give a damn if it worked so why bother? Beats doing nothing. Obviously a small lie remains a lie, especially in a situation like this. Full transparency would be what every hacked exchange should go for, but that’s rarely the case. It’s probably harder when you’re on the other end of the table, trying to restore faith into your exchange.
Unfortunately, the lie didn’t help CryptoRush.
“And so time goes on, and things look OK at first. But then the BTC wallet runs out. Alex123 and fraggyb did not know of our insolvency. Daemon problems we were told was the answer.
The guilt was starting to build up inside of me. I answered very few tickets the week of the 16th. I was conflicted, but I worked at my full time job >40 hours that week, so it kept my mind off of things a little. The issues continued. I kept suggesting ways we could maybe get some BTC back, arbitrage, etc. We didn’t even have enough funds for that. I wanted so bad for the exchange to stay afloat, thinking “Maybe tomorrow will bring us back our volume!” But alas, the problems with Zeit, and BTC withdrawals killed our volume. There was no coming back.”
As if their problems weren’t hard enough, another drama unfolded. The one we witnessed yesterday. Due to a wallet that wasn’t updated fast enough, people were able to withdraw more Blackcoins than they had in their account. Drama unfolded; the rest is history.
DogeyMcDoge’s confession is real. CryptoRush’s admins provided proof for this by tweeting about it.
No room for doubt there anymore. No reason to deny it, as well. In the meanwhile, CryptoRush made a few big announcements on Twitter. Besides the obligatory promises to reimburse stolen funds to its customers, the exchange also announced a new CEO. They also released an official statement on what happened yesterday.
“We are proud to announce that the President of CUAUTM is the new CEO of Cryptorush. With a new CEO, comes new servers, and staff to serve!”
After writing the initial story yesterday, it seemed only fair to provide this update. DogeyMcDoge’s writing provides a better look at how CryptoRush works and what challenges they faced in the past month. They will release a statement tomorrow on Dogey’s leak but, if it takes them 24 hours to write it, I doubt it will be a good one. It sounds like they’ll need 24 hours to look for excuses. That’s what you get when it takes 12+ hours to provide more details.
Last modified (UTC): April 20, 2014 6:34 PM