There's a £60m Bitcoin heist going down right now, and you can watch in real-time

Sheep Marketplace closed down over the weekend after someone got away with 96,000 bitcoins - and angry users are chasing him around the internet.

One of the largest heists in bitcoin history is happening right now. 96,000 bitcoins - that’s roughly £60m as of the time of writing - was taken from the accounts of customers, vendors and administrators of the Sheep Marketplace over the weekend.

Sheep was one of the main sites that came to replace the Silk Road when it closed in October, but it too has now closed as a result of this theft. It’s a little hard to work out exactly what’s happened, but Sheep customers have been piecing it together on reddit’s r/sheepmarketplace.

Here's what happened: someone (or some group) managed to fake the balances in peoples’ accounts on the site, showing that they had their bitcoins in their wallets when they’d actually been transferred out. Over the course of a week the whole site was drained, until the weekend when the site's administrators realised what was happening and shut everything down.

Originally it was thought that only 5,200BTC - or £3m - was taken, with a message posted on Sheep's homepage blaming a vendor called "EBOOK101" for finding and exploiting a bug. However, over the weekend it became clear that the amount stolen was much, much larger.

In a normal robbery that money would be gone by now, but it isn't. Bitcoin is pseudonymous, not anonymous, and bitcoins can’t just disappear. It works because each and every transaction is public and visible to each and every other person using the Bitcoin network, and a person is only as anonymous as their link to their wallet.

A couple of reddit users realised that the sheer size of the heist makes “tumbling” the coins - the normal method of laundering bitcoins - impossible, as long as they kept on their toes. Someone with bitcoin can send some to a tumbler like bitcoinfog, where it will be split into smaller subdivisions and mixed with other bitcoins from other places, recombining and splitting again several times over until the whole amount eventually comes out the other end, theoretically in such a way that it’s impossible to track. Silk Road’s in-built tumbler successfully foiled the FBI, allegedly.

However, reddit user TheNodManOut managed to track where the first bunch of transfers out of Sheep went, and from there and silkroadreloaded2 worked out which tumbler that the thief was using. Here’s how silkroadreloaded2 describes what’s happened since (“Tomas” is the alleged owner of Sheep, and one of the suspects for many users):

All day, we've been chasing the scoundrel with our stolen bitcoins through the blockchain. Around lunchtime (UK), I was chasing him across the roof of a moving train, (metaphorically). I was less than 20 minutes, or 2 blockchain confirmations, behind "Tomas".

He was desperately creating new wallet addresses and moving his 49 retirement wallets through them, but having to wait for 3 or 4 confirmations each time before moving them again. Each time I caught up, I "666"ed him - sent 0.00666 bitcoins to mess up his lovely round numbers like 4,000. Then,all of a sudden, decimal places started appearing, and fractions of bitcoins were jumping from wallet to wallet like grasshoppers on a hotplate without stopping for confirmations.

Shit!

He was tumbling our stolen bitcoins a second time, and a tumbler is unbeatable....

Unless you guess which one it is, nearly all the coins belong to the person you're tracking, jump in with him, and get jumbled up through the same wallets using the same algorithm. I was hopping from foot to foot shouting "come on!" at my laptop, waiting an age for 6 blockchain confirmations to get 0.5 btc into "bitcoin fog". My half a bitcoin got sliced and diced through loads of wallets and I followed the biggest chunk with blockchain.info - along with 96,000 stolen ones!

Or, in other words:

He gathered 96,000 in one pot, then split it into about 50 smaller ones. then he saw me 666ing them all. Imagine a sports stadium with 96,000 people in it, each with $1000.

He sent them all via different routes all over the world, but the same 96,000 people then arrived at a different stadium and he went to bed.

Now there are 96,001, and I just phoned you on my mobile to tell you where the stadium is.

A major problem with tumblers is that they only work with lots of bitcoins coming and going from a lot of different sources - if a tumbler is taking in 96,000 bitcoins, those will massively outnumber all other bitcoins being tumbled and it’ll be easy to spot them coming out the other end. Mix in a little of your own with all those other ones and you'll find out the wallet addresses that the tumbler uses, and it should be easy to spot large transactions splitting off from there.

The fascinating consequence of this is that you can see the stolen bitcoins on the public blockchain, and as long as there are people keeping tabs on it there’s going to be no way for the thief to cash in on their haul. Considering how people rely on tumblers to maintain anonymity when buying illegal stuff online, this unusual loophole is something of a revelation.

Right now, as you’re reading this, you can watch as the the thief starts trying to move their bitcoins on again - it’s currently down to 92,000 bitcoins and dropping as smaller chunks begin going out. Selling those bitcoins and turning them into cash is going to be extremely difficult, as the major Bitcoin exchanges all demand proof of identity (specifically to avoid charges that they're involved in money laundering), and if they're broken down into smaller quantities to sell via a site like localbitcoins.com a paper trail will still be generated. As soon as it's possible to link one real-life bank account or identity to any bitcoins from that stash, it will be possible to work out their real-life identity.

This counts as one of the largest robberies in history at Bitcoin's current market value, ranking in the same company as real-life thefts like the $108m diamond theft at the Harry Winston store in Paris in 2008. 96,000 bitcoins also places the thief as one of the wealthiest Bitcoin millionaires on the current rich list (but bear in mind that few serious Bitcoin players keep their currency in just one wallet) - and all without having to go to the trouble of wearing balaclavas or threatening someone with a gun.

Let's watch and see what happens next.

Some fan-made physical bitcoins. (Photo: antanacoins/Flickr)

Ian Steadman is a staff science and technology writer at the New Statesman. He is on Twitter as @iansteadman.

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The mother lode: how mums became the ultimate viral fodder

The internet’s favourite joke used to be "your mum". Now it's "my mum".

“I was like: oh my.”

Terri Squires is describing her reaction to the news that she had gone viral. Last month, more than 213,000 people shared a tweet about Terri – but it wasn’t sent from her account. The 50-year-old Ohioan was propelled to internet stardom by her son, Jeff, who had tweeted about his mother.

“I didn’t really realise what it meant at first until he was like: ‘Mum, you do realise that millions of people have looked at this?’ … When I started seeing those numbers I was like: ‘Oh boy’.”

It’s a funny story – and Terri laughs heartily all she tells it. After coming out of a meeting, she checked her phone and noticed a picture of a missing – white – dog on Facebook. She quickly texted 17-year-old Jeff to check that the family dog, Duey, was safe. “That’s not Duey… Duey’s face is brown,” replied her son. “OK – just checking,” replied Terri.

More than 600,000 people “liked” Terri’s mistake after Jeff shared screenshots of the text message exchange on Twitter. But Terri is just one of hundreds of mums who have gone viral via their sons and daughters. Texts mums send, mistakes they make, things they fail to notice – these have all become the ultimate viral fodder.

In the last three months alone, Gerald’s mum went viral for a microphone mishap, Adam’s mum shot to Twitter fame for failing to understand WhatsApp, Lois’ mum got tricked by her daughter, Harry’s mum was hit in the head with a football, Hanna’s mum misunderstood a hairstyle, and Jake’s mum failed to notice her son had swapped a photo in her home for a portrait of Kim Jong-un.

But how do the mothers behind these viral tweets feel?

“I'm pretty much a mum that everybody wants to talk to these days,” says Terri, with another warm laugh. The mum of three says going viral “is not that big of a deal” to her, but she is happy that her son can enjoy being a “local superstar”. But is she embarrassed at being the punchline of Jeff’s joke?

“Believe me, I have thick skin,” she says. “I kinda look at what it is, and it’s actually him and his fame. I’m just the mum behind it, the butt of the joke, but I don't mind.”

Not all mums feel the same. A handful of similar viral tweets have since been deleted, indicating the mothers featured in them weren’t best pleased. A few people I reach out to haven’t actually told their mums that they’re the subject of viral tweets, and other mums simply don’t want any more attention.

“I think I’ve put my mum through enough with that tweet already,” says Jacko, when I ask if his mum would be willing to be interviewed. In 2014, Jacko tweeted out a picture of his family writing the word “cock” in the air with sparklers. “This is still my favourite ever family photo,” he captioned the tweet, “My mum did the ‘O’. We told her we were going to write ‘Love’.”

“No one ever expects to call home and say ‘Mum, have you heard of something called LADbible? No, you shouldn’t have, it’s just that a quarter of a million of its fans have just liked a photo of you writing the word ‘cock’ with a sparkler’,” Jacko explains.

Although Jacko feels his mum’s been through enough with the tweet, he does say she was “ace” about her new found fame. “She’s probably cooler about it all than I am”. Apart from the odd deletion, then, it seems most mums are happy to become viral Twitter stars.

Yet why are mums so mocked and maligned in this way? Although dads are often the subject of viral tweets, this is usually because of jokes the dads themselves make (here’s the most notable example from this week). Mums, on the other hand, tend to be mocked for doing something “wrong” (though there are obviously a few examples of them going viral for their clever and cunning). On the whole: dads make jokes, mums are the butt of them.

“We all think our mums are so clueless, you know. They don’t know what’s going on. And the fun thing is, one day we come to realise that they knew way more of what was going on than we thought,” says Patricia Wood, a 56-year-old mum from Texas. “People always kind of make fun of their mums, but love them.”

Last year, Patricia went viral when her daughter Christina tweeted out screenshots of her mum’s Facebook posts. In them, Patricia had forgotten the names of Christina’s friends and had candidly written Facebook captions like: “My gorgeous daughter and her date for formal, sorry I forgot his name”. Christina captioned her tweet “I really can't with my mom” and went on to get more than 1,000 likes.

“I felt, like, wow, it was like we’re famous, you know. I thought it was really cool,” says Patricia, of going viral. Her experiences have been largely positive, and as a part-time Uber driver she enjoys telling her customers about the tweet. “But I did have one bad experience,” she explains. A drunken passenger in her car saw the tweet and called Patricia an “asshole”.

Another aspect of viral fame also worried Patricia. She and her daughter were invited on a reality show, TD Jakes, with the production company offering to pay for flights and hotels for the pair. “I have too many skeletons in my closet and I didn't want them to come dancing out,” says Patricia, of her decision not to go. “By the time I got off it, it would be the Jerry Springer show, you know. I’m kind of a strange bird.”

On the whole, then, mothers are often amused by going viral via their offspring – and perhaps this is the real beauty of tweeting about our mums. Since the moment they earn the title, mums can’t afford to be fragile. There is a joy and relatability in “my mum” tweets – because really, the mum in question could be anyone’s. Still, from now on, mums might be more careful about what they tell their sons and daughters.

“When I send Jeff a text now I make sure I’m like: ‘Is my spelling correct? Is what I’m saying grammatically correct?’,” says Terri, “Because who knows where the words are gonna end up?”

Amelia Tait is a technology and digital culture writer at the New Statesman.

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