Bitcoin Gambling Site Gets Hacked And More

Published July 4, 2015

Online bettor gets away with over $1 million in bitcoins after exploiting encryption leak on Primedice.

June wasn’t the best of months for online gambling using bitcoin as a couple of stories that turned out to be dramas made their way to the surface. While one of them saw a heist of over one million dollars, it was the other one that ended up in a guilty plea.

Hufflepuff steals $1m worth of bitcoins

The story begins with Primedice, an online betting website that allows users to wager in bitcoins on a throw of the dice. The goal of this simple game is to guess if the value of the dice is above or below a certain value, while the house edge is about 1%.

A player by the username of Hufflepuff became one of the biggest bettors on the side after the third version of the software was implemented in August last year. This new user was betting about $8,000 every second for several hours in one sitting and what was more surprising was the fact that he was winning and winning big. While the site delayed the cashouts for a bit in order to see if there was something happening, they couldn’t find anything and so they released the funds.

Hufflepuff continued to play and withdrew more than 2,400 bitcoins, which were worth over one million dollars at the time. Primedice eventually figured out that the user managed to see the encrypted value of the dice before placing the bets and the problem was resolved. The player however remains free and a lot richer.

Operator of bitcoin poker site found guilty

The second story features

Originally appeared at: http://www.onlinecasinoreports.com/articles/bitcoin-gambling-site-gets-hacked-and-more.php

Bitcoin Gambling Site Gets Hacked And More is a story from: BitcoinWarrior.net

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