Picostocks “Cold Wallet” Hack - Revision history

Azoundria: Another 30 minutes complete. Added technical analysis and prevention sections. Expanded and revised most text in the article.

2023-12-08T17:11:12Z

Another 30 minutes complete. Added technical analysis and prevention sections. Expanded and revised most text in the article.

Show changes

Azoundria: /* Ongoing Developments */

2023-02-14T17:38:26Z

Ongoing Developments

← Older revision		Revision as of 11:38, 14 February 2023
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	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref><ref>[https://bitcointalk.org/index.php?topic=5138600.0 PicoStocks Withdrawals Failing in May 2019] (Feb 14, 2023)</ref>. Posts on BitcoinTalk regarding the platform appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.<blockquote>[I'm] trying to withdraw some ETH from picostocks.com, but since last week [I'm] unable to withdraw my balance[. I] check[ed] their [T]witter[ and] [F]ac[e]book[. I see] many people complaining [about] the[ir] withdrawal req[u]est[s] but no one is responsible and there is no proper way to contact som[e]one for support[.] So just be car[e]ful before using this exchange, because [I'm] still not sure [if] this site is [a] scam or not.</blockquote>The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref><ref>[https://bitcointalk.org/index.php?topic=5138600.0 PicoStocks Withdrawals Failing in May 2019] (Feb 14, 2023)</ref>. Posts by the founder tytus on BitcoinTalk regarding the platform appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.<blockquote>[I'm] trying to withdraw some ETH from picostocks.com, but since last week [I'm] unable to withdraw my balance[. I] check[ed] their [T]witter[ and] [F]ac[e]book[. I see] many people complaining [about] the[ir] withdrawal req[u]est[s] but no one is responsible and there is no proper way to contact som[e]one for support[.] So just be car[e]ful before using this exchange, because [I'm] still not sure [if] this site is [a] scam or not.</blockquote>The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

	== Prevention Policies ==		== Prevention Policies ==

Azoundria: /* Ongoing Developments */ Added source of withdrawals failing on PicoStocks.

2023-02-14T17:31:45Z

Ongoing Developments: Added source of withdrawals failing on PicoStocks.

← Older revision		Revision as of 11:31, 14 February 2023
Line 92:		Line 92:

	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>. Posts on BitcoinTalk regarding the platform appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.		PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref><ref>[https://bitcointalk.org/index.php?topic=5138600.0 PicoStocks Withdrawals Failing in May 2019] (Feb 14, 2023)</ref>. Posts on BitcoinTalk regarding the platform appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.<blockquote>[I'm] trying to withdraw some ETH from picostocks.com, but since last week [I'm] unable to withdraw my balance[. I] check[ed] their [T]witter[ and] [F]ac[e]book[. I see] many people complaining [about] the[ir] withdrawal req[u]est[s] but no one is responsible and there is no proper way to contact som[e]one for support[.] So just be car[e]ful before using this exchange, because [I'm] still not sure [if] this site is [a] scam or not.</blockquote>The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

	== Prevention Policies ==		== Prevention Policies ==

Azoundria: /* Immediate Reactions */

2023-02-14T17:20:15Z

Immediate Reactions

← Older revision		Revision as of 11:20, 14 February 2023
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	== Immediate Reactions ==		== Immediate Reactions ==
	It does not appear that there were any ~~changed~~ to the PicoStocks website to announce the situation at all<ref>[https://web.archive.org/web/20131028034411/https://picostocks.com/ PicoStocks Homepage On October 28th, 2013 - Internet Archive] (Feb 8, 2023)</ref><ref>[https://web.archive.org/web/20140209045011/https://picostocks.com/ PicoStocks Website On February 9th, 2014 - Internet Archive] (Feb 8, 2023)</ref>. PicoStocks posted an announcement about what happened on the BitcoinTalk forum<ref name="bitcointalkannouncement" />, which was subsequently reposted to Reddit<ref name=":0" />.<blockquote>PicoStocks is down for a while and will remain like this for sure over the weekend. Funds from our hot wallet and cold wallet account have been stolen.		It does not appear that there were any changes to the PicoStocks website to announce the situation at all<ref>[https://web.archive.org/web/20131028034411/https://picostocks.com/ PicoStocks Homepage On October 28th, 2013 - Internet Archive] (Feb 8, 2023)</ref><ref>[https://web.archive.org/web/20140209045011/https://picostocks.com/ PicoStocks Website On February 9th, 2014 - Internet Archive] (Feb 8, 2023)</ref>. PicoStocks posted an announcement about what happened on the BitcoinTalk forum<ref name="bitcointalkannouncement" />, which was subsequently reposted to Reddit<ref name=":0" />.<blockquote>PicoStocks is down for a while and will remain like this for sure over the weekend. Funds from our hot wallet and cold wallet account have been stolen.

	There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.		There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.

	This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>, ~~while~~ some BitcoinTalk users were similarly critical<ref name="bitcointalkannouncement" />.<blockquote>You're exactly the scumbag thief I said you were, back in Spring.</blockquote>		This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>, and some BitcoinTalk users were similarly critical<ref name="bitcointalkannouncement" />.<blockquote>You're exactly the scumbag thief I said you were, back in Spring.</blockquote>

	== Ultimate Outcome ==		== Ultimate Outcome ==
Line 92:		Line 92:

	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>. Posts on BitcoinTalk appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.		PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>. Posts on BitcoinTalk regarding the platform appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

Azoundria at 19:06, 13 February 2023

2023-02-13T19:06:35Z

← Older revision		Revision as of 13:06, 13 February 2023
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	== About PicoStocks ==		== About PicoStocks ==
	PicoStocks was a centralized exchange based in Marshall Islands<ref name=":6">[https://web.archive.org/web/20121228114940/http://picostocks.com/ PicoStocks Website On December 28th, 2012 - Internet Archive] (Feb 8, 2023)</ref>, which was launched on either December 21st, 2012<ref name=":7">[https://en.bitcoin.it/wiki/Picostocks PicoStocks - Bitcoin Wiki] (Feb 8, 2023)</ref> or December 24th, 2012<ref name="coinmarketcap" />. The service was primarily focused around allowing companies to raise funds using the blockchain with an "Initial PicoStocks Offering (IPO)"<ref name=":6" />. They reportedly allowed investors to invest anonymously<ref name=":6" /><ref name=":7" /> and used novel means for circumventing legal regulation<ref name="bitcointalklist" />. The service was run by the BitcoinTalk user "tytus"<ref name="bitcointalklist" /><ref name=":1">[https://bitcointalk.org/index.php?topic=133147.msg3771721#msg3771721 Quote of Original Announcement on BitcoinTalk] (Feb 8, 2023)</ref>. <blockquote>Picostocks facilitates valuation and fundraising for high tech startup projects and companies and offers valuable services and benefits for both bitcoin investors and entrepreneurs.		PicoStocks was a centralized exchange based in Marshall Islands<ref name=":6">[https://web.archive.org/web/20121228114940/http://picostocks.com/ PicoStocks Website On December 28th, 2012 - Internet Archive] (Feb 8, 2023)</ref>, which was launched on either December 21st, 2012<ref name=":7">[https://en.bitcoin.it/wiki/Picostocks PicoStocks - Bitcoin Wiki] (Feb 8, 2023)</ref> or December 24th, 2012<ref name="coinmarketcap" />. The service was primarily focused around allowing companies to raise funds using the blockchain with an "Initial PicoStocks Offering (IPO)"<ref name=":6" />. They reportedly allowed investors to invest anonymously<ref name=":6" /><ref name=":7" /> and used novel means for circumventing legal regulation<ref name="bitcointalklist" />. The service was run by the BitcoinTalk user "tytus"<ref name="bitcointalklist" /><ref name="bitcointalkannouncement">[https://bitcointalk.org/index.php?topic=133147.msg3771721#msg3771721 Quote of Original Announcement on BitcoinTalk] (Feb 8, 2023)</ref>. <blockquote>Picostocks facilitates valuation and fundraising for high tech startup projects and companies and offers valuable services and benefits for both bitcoin investors and entrepreneurs.

	Investors[, you] can obtain valuation of assets You own by the PicoStocks community through an Initial PicoStocks Offering (IPO). You can sell Your assets to PicoStocks if You are satisfied with the IPO evaluation results. You can obtain long term profits from the sold assets through a fixed share in future dividend payments from the asset. You can collect rewards by evaluating assets offered by other PicoStocks members. You can profit from transactions on the PicoStocks platform. You can participate in profits from dividends from assets You hold on PicoStocks. You can benefit from the anonymity of the bitcoin network.		Investors[, you] can obtain valuation of assets You own by the PicoStocks community through an Initial PicoStocks Offering (IPO). You can sell Your assets to PicoStocks if You are satisfied with the IPO evaluation results. You can obtain long term profits from the sold assets through a fixed share in future dividend payments from the asset. You can collect rewards by evaluating assets offered by other PicoStocks members. You can profit from transactions on the PicoStocks platform. You can participate in profits from dividends from assets You hold on PicoStocks. You can benefit from the anonymity of the bitcoin network.

	Entrepreneurs[, y]ou can obtain initial valuation of assets of Your company at any stage of development, much cheaper and much faster than through other public stock exchange platforms. You can raise capital for the company by selling stocks of the company to PicoStocks after accepting the results of the IPO. You can monitor the valuation of the company as on any other stock exchange platform but with much less formal requirements and at a much lower cost.</blockquote>The platform listed their name and address as "Picostocks Incorporated, Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960"<ref name=":6" />. They also featured an "IPO office" which was "operated by BioInfoBank, Sw. Marcin 80/82 lok. 355, 61-809 Poznan, Poland"<ref name=":6" />. Customers could contact them by email, phone, and fax<ref name=":6" />, as well as through some social media channels like the BitcoinTalk forum<ref name=":1" />. Traded stocks remained the legal property of PicoStocks and PicoStocks collected various fees throughout the investment process<ref name=":7" />.		Entrepreneurs[, y]ou can obtain initial valuation of assets of Your company at any stage of development, much cheaper and much faster than through other public stock exchange platforms. You can raise capital for the company by selling stocks of the company to PicoStocks after accepting the results of the IPO. You can monitor the valuation of the company as on any other stock exchange platform but with much less formal requirements and at a much lower cost.</blockquote>The platform listed their name and address as "Picostocks Incorporated, Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960"<ref name=":6" />. They also featured an "IPO office" which was "operated by BioInfoBank, Sw. Marcin 80/82 lok. 355, 61-809 Poznan, Poland"<ref name=":6" />. Customers could contact them by email, phone, and fax<ref name=":6" />, as well as through some social media channels like the BitcoinTalk forum<ref name="bitcointalkannouncement" />. Traded stocks remained the legal property of PicoStocks and PicoStocks collected various fees throughout the investment process<ref name=":7" />.

	== The Reality ==		== The Reality ==
Line 40:		Line 40:
	\|November 29th, 2013 6:18:45 PM		\|November 29th, 2013 6:18:45 PM
	\|BitcoinTalk Post		\|BitcoinTalk Post
	\|BitcoinTalk user tytus, suspected to be the founder of PicoStocks, posts an announcement on the BitcoinTalk forum<ref name=":1" /><ref>[https://web.archive.org/web/20140410055951/https://bitcointalk.org/index.php?topic=133147.80 tytus Theft Announcement on BitcoinTalk - Internet Archive] (Feb 8, 2023)</ref>.		\|BitcoinTalk user tytus, suspected to be the founder of PicoStocks, posts an announcement on the BitcoinTalk forum<ref name="bitcointalkannouncement" /><ref>[https://web.archive.org/web/20140410055951/https://bitcointalk.org/index.php?topic=133147.80 tytus Theft Announcement on BitcoinTalk - Internet Archive] (Feb 8, 2023)</ref>.
	\|-		\|-
	\|November 30th, 2013 3:36:14 AM		\|November 30th, 2013 3:36:14 AM
Line 77:		Line 77:

	== Immediate Reactions ==		== Immediate Reactions ==
	It does not appear that there were any changed to the PicoStocks website to announce the situation at all<ref>[https://web.archive.org/web/20131028034411/https://picostocks.com/ PicoStocks Homepage On October 28th, 2013 - Internet Archive] (Feb 8, 2023)</ref><ref>[https://web.archive.org/web/20140209045011/https://picostocks.com/ PicoStocks Website On February 9th, 2014 - Internet Archive] (Feb 8, 2023)</ref>. PicoStocks posted an announcement about what happened on the BitcoinTalk forum<ref name=":1" />, which was subsequently reposted to Reddit<ref name=":0" />.<blockquote>PicoStocks is down for a while and will remain like this for sure over the weekend. Funds from our hot wallet and cold wallet account have been stolen.		It does not appear that there were any changed to the PicoStocks website to announce the situation at all<ref>[https://web.archive.org/web/20131028034411/https://picostocks.com/ PicoStocks Homepage On October 28th, 2013 - Internet Archive] (Feb 8, 2023)</ref><ref>[https://web.archive.org/web/20140209045011/https://picostocks.com/ PicoStocks Website On February 9th, 2014 - Internet Archive] (Feb 8, 2023)</ref>. PicoStocks posted an announcement about what happened on the BitcoinTalk forum<ref name="bitcointalkannouncement" />, which was subsequently reposted to Reddit<ref name=":0" />.<blockquote>PicoStocks is down for a while and will remain like this for sure over the weekend. Funds from our hot wallet and cold wallet account have been stolen.

	There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.		There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.

	This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>, while some BitcoinTalk users were similarly critical<ref~~>[https://bitcointalk.org/index.php?topic~~=~~133147.msg3771721#msg3771721 Immediate Criticism Received on BitcoinTalk] (Feb 8, 2023)<~~/~~ref~~>.<blockquote>You're exactly the scumbag thief I said you were, back in Spring.</blockquote>		This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>, while some BitcoinTalk users were similarly critical<ref name="bitcointalkannouncement" />.<blockquote>You're exactly the scumbag thief I said you were, back in Spring.</blockquote>

	== Ultimate Outcome ==		== Ultimate Outcome ==

Azoundria at 00:31, 10 February 2023

2023-02-10T00:31:54Z

← Older revision		Revision as of 18:31, 9 February 2023
Line 74:		Line 74:
	The loss amount was reportedly as 5,896.23098163<ref name="bitcointalklist" /> BTC (some sources rounded this to 5,895 BTC<ref name="kylegibson" /><ref name="bitcoinexchangeguide" />), with an estimated value of either $6,000,000 USD<ref name="kylegibson" /><ref name="bitcoinexchangeguide" /><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6gzl/ Reddit User Godfreee's estimate - Reddit] (Feb 8, 2023)</ref> or $3,009,397 USD<ref name="bitcointalklist" />.		The loss amount was reportedly as 5,896.23098163<ref name="bitcointalklist" /> BTC (some sources rounded this to 5,895 BTC<ref name="kylegibson" /><ref name="bitcoinexchangeguide" />), with an estimated value of either $6,000,000 USD<ref name="kylegibson" /><ref name="bitcoinexchangeguide" /><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6gzl/ Reddit User Godfreee's estimate - Reddit] (Feb 8, 2023)</ref> or $3,009,397 USD<ref name="bitcointalklist" />.

	Funds were removed from both the hot wallet and cold wallet of PicoStocks<ref name=":0" /><ref name="bitcoinexchangeguide" /><ref name="bitcointalklist" />. According to blockchain data, the hot wallet had 685.57933572 BTC<ref>[http://blockchain.info/address/1NzM1bdTKuK9z3pQUCc1raXPezYUenSNWj Picostocks Hot Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":3" /> and the cold wallet had 5210.65104591 BTC<ref>[https://blockchain.info/address/12RAM7r4EraZ5ESU5QJwe8sS3gj3YYEgpF Picostocks Cold Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":2" />. This maintains a total of 5896.23038163 BTC. Using the bitcoin market price for November 29th, 2013 of $1,037.76 USD from BuyBitcoinWorldWide<ref>[https://buybitcoinworldwide.com/price/ ~~BuyBitcoinWorldWide~~ Price] (Feb 8, 2023)</ref>, this gives a total value of $5,407,405.23 USD.		Funds were removed from both the hot wallet and cold wallet of PicoStocks<ref name=":0" /><ref name="bitcoinexchangeguide" /><ref name="bitcointalklist" />. According to blockchain data, the hot wallet had 685.57933572 BTC<ref>[http://blockchain.info/address/1NzM1bdTKuK9z3pQUCc1raXPezYUenSNWj Picostocks Hot Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":3" /> and the cold wallet had 5210.65104591 BTC<ref>[https://blockchain.info/address/12RAM7r4EraZ5ESU5QJwe8sS3gj3YYEgpF Picostocks Cold Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":2" />. This maintains a total of 5896.23038163 BTC. Using the bitcoin market price for November 29th, 2013 of $1,037.76 USD from BuyBitcoinWorldWide<ref>[https://buybitcoinworldwide.com/price/ BuyBitcoinsWorldwide Historic Bitcoin Price Chart] (Feb 8, 2023)</ref>, this gives a total value of $5,407,405.23 USD.

	== Immediate Reactions ==		== Immediate Reactions ==

Azoundria: /* Total Amount Lost */ proof of post deletion

2023-02-08T23:52:38Z

Total Amount Lost: proof of post deletion

← Older revision		Revision as of 17:52, 8 February 2023
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	== Total Amount Lost ==		== Total Amount Lost ==
	The loss amount was reportedly as 5,896.23098163<ref name="bitcointalklist" /> BTC (some sources rounded this to 5,895 BTC<ref name="kylegibson" />), with an estimated value of either $6,000,000 USD<ref name="kylegibson" /><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6gzl/ Reddit User Godfreee's estimate - Reddit] (Feb 8, 2023)</ref> or $3,009,397 USD<ref name="bitcointalklist" />.		The loss amount was reportedly as 5,896.23098163<ref name="bitcointalklist" /> BTC (some sources rounded this to 5,895 BTC<ref name="kylegibson" /><ref name="bitcoinexchangeguide" />), with an estimated value of either $6,000,000 USD<ref name="kylegibson" /><ref name="bitcoinexchangeguide" /><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6gzl/ Reddit User Godfreee's estimate - Reddit] (Feb 8, 2023)</ref> or $3,009,397 USD<ref name="bitcointalklist" />.

	Funds were removed from both the hot wallet and cold wallet of PicoStocks<ref name=":0" /><ref name="bitcoinexchangeguide" /><ref name="bitcointalklist" />. According to blockchain data, the hot wallet had 685.57933572 BTC<ref>[http://blockchain.info/address/1NzM1bdTKuK9z3pQUCc1raXPezYUenSNWj Picostocks Hot Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":3" /> and the cold wallet had 5210.65104591 BTC<ref>[https://blockchain.info/address/12RAM7r4EraZ5ESU5QJwe8sS3gj3YYEgpF Picostocks Cold Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":2" />. This maintains a total of 5896.23038163 BTC. Using the bitcoin market price for November 29th, 2013 of $1,037.76 USD from BuyBitcoinWorldWide<ref>[https://buybitcoinworldwide.com/price/ BuyBitcoinWorldWide Price] (Feb 8, 2023)</ref>, this gives a total value of $5,407,405.23 USD.		Funds were removed from both the hot wallet and cold wallet of PicoStocks<ref name=":0" /><ref name="bitcoinexchangeguide" /><ref name="bitcointalklist" />. According to blockchain data, the hot wallet had 685.57933572 BTC<ref>[http://blockchain.info/address/1NzM1bdTKuK9z3pQUCc1raXPezYUenSNWj Picostocks Hot Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":3" /> and the cold wallet had 5210.65104591 BTC<ref>[https://blockchain.info/address/12RAM7r4EraZ5ESU5QJwe8sS3gj3YYEgpF Picostocks Cold Wallet - Blockchain.info] (Feb 8, 2023)</ref><ref name=":2" />. This maintains a total of 5896.23038163 BTC. Using the bitcoin market price for November 29th, 2013 of $1,037.76 USD from BuyBitcoinWorldWide<ref>[https://buybitcoinworldwide.com/price/ BuyBitcoinWorldWide Price] (Feb 8, 2023)</ref>, this gives a total value of $5,407,405.23 USD.
Line 92:		Line 92:

	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.		PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>. Posts on BitcoinTalk appear to have been deleted<ref>[https://web.archive.org/web/20160130114415/https://bitcointalk.org/index.php?action=profile;u=56286 tytus Post Count 275 Prior To Delete - BitcoinTalk] (Feb 8, 2023)</ref><ref name=":8" />.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

Azoundria: /* What Happened */

2023-02-08T23:49:15Z

What Happened

← Older revision		Revision as of 17:49, 8 February 2023
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	\|-		\|-
	\|February 15th, 2019		\|February 15th, 2019
	\|Medium Post		\|Final Medium Post
	\|The PicoStocks account on Medium posted the final post about how the platform prevented wash trading by publishing user IDs<ref>[https://medium.com/@picostocks/how-publishing-user-ids-with-trades-makes-a-crypto-exchange-better-for-everyone-fcc0a02059a0 How Publishing User IDs with Trades Makes a Crypto Exchange Better for Everyone - Medium] (Feb 8, 2023)</ref>.		\|The PicoStocks account on Medium posted the final post about how the platform prevented wash trading by publishing user IDs<ref>[https://medium.com/@picostocks/how-publishing-user-ids-with-trades-makes-a-crypto-exchange-better-for-everyone-fcc0a02059a0 How Publishing User IDs with Trades Makes a Crypto Exchange Better for Everyone - Medium] (Feb 8, 2023)</ref>.
			\|-
			\|March 29th, 2019 12:57 AM
			\|Final Twitter Post
			\|The final post of PicoStocks on Twitter<ref name=":10">[https://twitter.com/PicoStocks/status/1111522755432890368 PicoStocks Final Tweet - Twitter] (Feb 8, 2023)</ref>.
	\|-		\|-
	\|December 13, 2019, 12:00:36 PM		\|December 13, 2019, 12:00:36 PM
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	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade, although users started to report withdrawal problems in 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.		PicoStocks continued to operate for close to a decade and was active on social media until March 2019<ref name=":10" />, although users started to report withdrawal problems and a lack of support near the end of 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

Azoundria: /* What Happened */ most recent PicoStocks events added

2023-02-08T23:45:58Z

What Happened: most recent PicoStocks events added

← Older revision		Revision as of 17:45, 8 February 2023
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	\|tytus Last Active		\|tytus Last Active
	\|The BitcoinTalk account for tytus is last active on the BitcoinTalk forums<ref name=":8" />.		\|The BitcoinTalk account for tytus is last active on the BitcoinTalk forums<ref name=":8" />.
			\|-
			\|February 15th, 2019
			\|Medium Post
			\|The PicoStocks account on Medium posted the final post about how the platform prevented wash trading by publishing user IDs<ref>[https://medium.com/@picostocks/how-publishing-user-ids-with-trades-makes-a-crypto-exchange-better-for-everyone-fcc0a02059a0 How Publishing User IDs with Trades Makes a Crypto Exchange Better for Everyone - Medium] (Feb 8, 2023)</ref>.
			\|-
			\|December 13, 2019, 12:00:36 PM
			\|Withdrawal Problems
			\|PicoStocks users start to report withdrawal problems and a lack of support on the BitcoinTalk forum<ref name=":9" />.
	\|}		\|}

Line 80:		Line 88:

	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade, although users started to report withdrawal problems in 2019<ref>[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.		PicoStocks continued to operate for close to a decade, although users started to report withdrawal problems in 2019<ref name=":9">[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.

Azoundria: /* Immediate Reactions */ article should be all completed and ready for publishing

2023-02-08T23:40:07Z

Immediate Reactions: article should be all completed and ready for publishing

← Older revision		Revision as of 17:40, 8 February 2023
Line 1:		Line 1:
	~~{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/picostockscoldwallethack.php}}~~
	[[File:Picostocks.jpg\|thumb\|PicoStocks platform.]]		[[File:Picostocks.jpg\|thumb\|PicoStocks platform.]]
	PicoStocks was a centralized exchange based in Marshall Islands, which operated one of the earliest forms of offshore fundraising, where entrepreneurs could launch offerings for investors. On November 29th, 2013, the service suffered a breach of 5,896.23098163 bitcoin which were taken from two separate wallets. Ultimately, the exchange covered all affected user losses and was able to relaunch successfully.		PicoStocks was a centralized exchange based in Marshall Islands, which operated one of the earliest forms of offshore fundraising, where entrepreneurs could launch offerings for investors. On November 29th, 2013, the service suffered a breach of 5,896.23098163 bitcoin which were taken from two separate wallets. Ultimately, the exchange covered all affected user losses and was able to relaunch successfully.
Line 70:		Line 69:
	There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.		There is no sign of an intrusion into the systems. Both wallets were located on different computers. We suspect that these have been copied by people who had access to the system in the past and decrypted.

	This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>.		This is of course a serious loss for the company, but we expect no losses for the users. the funds collected on user account will be returned. We will have to create a new hot wallet and we will change all PicoStocks addresses for all users, but the rest will remain as it was. We will open the system when we have positively reviewed the security and collected the funds for the users :-( Maybe in 1 week from now :-(</blockquote>Multiple users heavily criticized PicoStocks for operating their cold wallet on a networked computer<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq6aan/ servowire Comment - Reddit] (Feb 8, 2023)</ref><ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq81rr/ thekiwi99 Comment - Reddit] (Feb 8, 2023)</ref>, but there is no indication that this was the way the wallet had operated. The response with the most upvotes on Reddit concluded that the PicoStocks platform either deserved their loss or was attempting a scam<ref>[https://www.reddit.com/r/Bitcoin/comments/1rrnua/comment/cdq680f/ riplin Comment - Reddit] (Feb 8, 2023)</ref>, while some BitcoinTalk users were similarly critical<ref>[https://bitcointalk.org/index.php?topic=133147.msg3771721#msg3771721 Immediate Criticism Received on BitcoinTalk] (Feb 8, 2023)</ref>.<blockquote>You're exactly the scumbag thief I said you were, back in Spring.</blockquote>

	~~How did the various parties involved~~ (~~firm~~, ~~platform~~, ~~management, and~~/~~or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?~~

	== Ultimate Outcome ==		== Ultimate Outcome ==
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	PicoStocks promised users that they would return all "the funds collected on user account"<ref name=":0" /> and this was reportedly followed through with<ref name="bitcointalklist" />.		PicoStocks promised users that they would return all "the funds collected on user account"<ref name=":0" /> and this was reportedly followed through with<ref name="bitcointalklist" />.

	~~It is unknown how much was recovered.~~

	~~What funds were recovered? What funds were reimbursed for those affected users?~~

	== Ongoing Developments ==		== Ongoing Developments ==
	PicoStocks continued to operate for close to a decade.		PicoStocks continued to operate for close to a decade, although users started to report withdrawal problems in 2019<ref>[https://bitcointalk.org/index.php?topic=133147.msg53335839#msg53335839 Users Reporting Withdrawal Problems In 2019 - BitcoinTalk] (Feb 8, 2023)</ref>.

	The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.		The PicoStocks homepage was still online as of September 28th, 2021<ref>[https://web.archive.org/web/20210928043722/https://picostocks.com/about PicoStocks Website On September 28th, 2021 - Internet Archive] (Feb 8, 2023)</ref>, and the website appeared functional to log in as of January 3rd, 2022<ref>[https://web.archive.org/web/20220103200915/https://picostocks.com/login PicoStocks Website On January 3rd, 2022 - Internet Archive] (Feb 8, 2023)</ref>. However, no subsequent captures of the site have been made and it appears to be offline as of February 8th, 2023.