Vendor Using BitPay Becomes Victim of Five Bitcoin Double-spend Attacks

One particular online Bitcoin shop was the victim of several double-spend attacks while using BitPay as a payment processor. While BitPay lets merchants accept payments as “completed’ at zero- network confirmations, it is still; possible to double-spend funds. This highlights the need for payment processor ‘insurance’ all transactions will be honoured when dealing with zero-confirmation payments.

A Bitcoin Double-spend For US$20

According to the Reddit post, this online shop sells in-game items, mainly for CS: GO. Throughout the years, this game has become increasingly popular. Gamers are always looking for the newest skins to show off. Some of these items can go for several hundred dollars on the market.

Due to the correlation between Bitcoin and gaming purchases, the online shop signed up for BitPay as a cryptocurrency payment processors. This means the shop will always receive the funds, and payments are deemed complete once they are visible on the blockchain. In most cases, this would not be a reason for concern, as most transactions go through without a hitch.

But things started going astray not too long ago, as several double-spend transactions were recorded. While this will not cause financial losses to the store, it is an intriguing

Read more ... source: TheBitcoinNews

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