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Defcon’s Latest post: We Will Repay The Stolen Funds

Update: Alleged Silk Road 2.0 Hacker Doxxed!?

I Spent half of this day contemplating if should post this as just another chapter of this drama, and decided why not, we should have this on the record, the latest statement from the hacked Silk road 2 admin, claiming he will make it up to everyone and will no collect any commision from the market until he repay the stolen funds to all vendors:

You can join the full discussion at the OP, here: http://silkroad5v7dywlc.onion/index.php?topic=26475.0;topicseen

===Start Quote===

First, to dispel rumors. We are deep into the investigation of data surrounding the attacks, and it there is absolutely zero evidence of any staff member being involved. We will publish more information as we determine its accuracy, thank you to all who have contributed tips on the attackers’ identities.

After much self-reflection and deliberation with community members we value highly, it is clear that there is only one way forward.

This leadership and this community will not stop until you are completely repaid.

We know you feel defenseless right now. You are naked. Many of you are convinced there is no logical reason any darknet admin would ever fight to get your coins back.

I can stand here and reiterate that all I want to do is defend you, to steer this community towards incrementally safer operation. But my words are no comfort, and I understand that. You will never meet me. We are all anonymous.

I gave a similar speech in December when we met our first impossible situation. You have no reason to trust my words. My actions will prove you wrong.

Here is the current plan. Thank you to the dedicated vendors and buyers who helped draft this approach. This is not necessarily a final plan, we are open to suggestions on how to improve this and want your feedback.

The Plan for Moving Forward as of Feb 15

1. This administration will not earn any commissions until everyone is completely paid back, and will be very transparent about the progress towards this goal.

2. The marketplace will relaunch as no-escrow. We will not re-implement escrow unless it is multi-signature and decentralized to multiple escrow providers (trusted mediators with feedback just like vendors). Never buy from a market which uses centralized escrow again. You will only get hurt no matter how honest the team is.

3. All items will be priced at a flat 5% commission which will go directly into victims’ balances upon purchase.

4. Vendors who lost funds: Commissions from your items will go directly into your wallet until you are completely repaid, then will be distributed to other vendors until they are repaid. Vendor bonds are considered lost funds, and we also commit to paying these back.

5. All vendors can opt-in to give a higher percentage back on their listings, and all buyers will be presented with a “Donate” box on the shopping cart. Vendors’ donation percentage will be publicly visible.

6. We will launch the support system immediately. Resubmit any open support requests you had which are still applicable. All previous messages will be ignored due to our inbound message volume. I have received over 1000 private messages over the past 24 hours, for example. This fresh start will allow us to stay on top of the support queue, rather than paying down a large debt incurred by previous administrators.

7. We will still handle dispute resolution for existing escrow orders until all balances site-wide are in “Pending Balance” category. Your stolen balances and escrows will display as “Pending balance” and “Pending escrow”. Yes, like Christmas. I hoped to never have to take this approach again. All unshipped orders have been cancelled. To the vendors who have shipped orders despite no access to the portal: you are beautiful people. Try to resolve with your buyer directly, and file a support ticket if you do not receive a refund to your pending escrow balance within a month.

The plans above are subject to change as we consider your input.

The statistics are humbling:

26% of our monthly active users have lost their entire SR funds. That represents 47% of users who have purchased or sold items since launch.

Our inbound traffic has been growing at a rapid pace. The first ten days of February saw as many purchases as the entire month of January. By Feb 13, we surpassed January’s total user registrations.

We strongly believe that we can work together and make this right.

Silk Road is not a name easily forgotten, and how we pull through this struggle will only solidify our name as the strongest community in the darknet.

Buyers and Vendors: We are committed to getting everyone repaid even if it takes a year. Do not forget to check your SR accounts frequently for balances repaid, and withdraw them when you see them.

Vendors:  You are welcomed and encouraged to vend on multiple markets. I only trust myself, and will not endorse any of them. But I have failed you. Wherever you vend, may you prosper.

Buyers: do not purchase using centralized escrow. Use markets which have implemented multi-signature, or only purchase with No-Escrow (FE) from VERY trusted vendors. This is not an ideal climate, but it is the reality of the darknet today. I cannot emphasize strongly enough that every market which uses centralized escrow will fail. Centralization makes a market a huge target for attackers, and a huge target for dishonest administrators.

Again, we welcome your feedback on this approach to moving forward, and will continue to refine it throughout the year based on sales data.

I don’t care how long it takes or how expensive it is, we will fight to get this community repaid.

===End Quote===

defcon4

We are not here to judge, just provide the information and let everyone make their own mind about this situation, keep safe.

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5 comments

  1. I’m glad you are posting these as they tend to disappear of the forum after a few hours like the “Humbled and Furious” thread was “accidentally deleted”. Really seems to me like there are too many on the forum either blindly following Defcon and any that aren’t seem to change their tune after “talking” with Defcon. Maybe I was to quiet and not loud enough to be paid off but I did vent a bit which ended up with me being called a troll, really ridiculous now as I’m seeking the truth or questioning their version of the truth. I will say this much if this doesn’t slow the amount of users blindly throwing money away they deserve to be cleaned out

    • This just gets funnier, doesn’t it?

      What I thought was 90% scam to begin with, is now 100%.

      Look at honest Mr Con’s words and actions.

      1. No real attempts to find the thieves. Why? They are presumed too sophisticated. i.e. they are him.
      2. Not actually repaying out of own pocket.
      3. Actually repaying by getting new customers to pay extra ‘tax’ commissions to a victim’s fund!
      4. Giving himself his old job back! If he was so shit he got money stolen from him in the first place, why would anyone put him in charge? Oh yeah, because nobody gets a say in that.
      5. A magnificent signoff- “I don’t care how long it takes or how expensive it is, we will fight to get this community repaid”. Expensive for him? No no no, expensive to anyone who buys anything from SR in future. But apparently that’s his fight.

      Even if he never stole the money. EVEN IF.
      Would you re-employ the same sleepy security guy who openly admitted in a letter to you that he saw the vulnerabilities that led to the last theft? If you do, then head on down to DR because they want your type of customer i.e. grinning idiots only.

  2. Can you believe that he offered Silk Road 2′s vulberability testing services to other darknet marketplaces? After DPR2 hacked TorMarket and releasd its userlist?

    Get your own damn security sorted before you offer it, or threaten to use it, on better marketplaces that don’t keep losing everybody’s entire balance, again and again.

    Defcon makes me ashamed to be British.

  3. “26% of users lost their entire balance”

    SR2 keeps the funds centrally. When a vendor wants to withdraw his money, it comes from this pool. If it was your wallet, you would have the private key, and Silk Road couldn’t have the “kill switch”.

    If your balance was in your own discrete wallet. the so-called scamming vendor couldn’t have withdrawn from it.

    When you login to SR2 again, you can bet that you just so-happen to be one of those 26% of people with a zero balance.

    Dr Bunhead, you are spot-on. He hasn’t addressed the transaction malleability issue he blamed. Until he explains how he’s fixed it, nobody should deposit any funds, unless you intend to follow them on the blockchain to determine silk road’s internal workings.

    You would think the first thing he would do is explain how they fixed the security loophole. It was the most important thing in the world that he needed us to understand a week ago. Now he wants money to flow into the crippled site again, and its not even mentioned.

    Your balance will be zero. The moment it isn’t, he’s going to be hitting those kill switches that he’s already admitted to.

    Defocn has the private keys to wallets on the site. They are his wallets. HE got robbed. He wants us to

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