Silk Road 2.0 Hacked with Over £1.6 Million in Bitcoin Allegedly Stolen

(The Independent) Silk Road 2 moderator Defcon has claimed that hackers have stolen over 4,000 bitcoins after using a transaction malleability exploit to hack into the black market.

The deep web marketplace uses an escrow system to allow buyers and sellers to trade bitcoins, with the bug that was exploited masking transfers and allowing hackers to request the same amount of BTC again and again until the coffers were cleaned out.

It is thought to be the same technique that forced Bitcoin exchange Mt. Gox to halt all transactions.