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Primedice Taken For $1 Million in Bitcoins
Tuesday June 30,2015 : BITCOIN'S ANONYMITY ADVANTAGE BACKFIRES ON CASINO OPERATOR
Bitcoin-denominated operator Primedice taken for a million dollar ride.
The advantages of anonymity offered by virtual currencies like Bitcoin, so often used in marketing tactics by online casinos using the cyber-currency, backfired expensively on the operator of the Primedice website last year.
When a dishonest punter was able to exploit a software flaw on a simple dice game, it cost the operator over a million dollars...and the disappearance of the hacker, the owner of the site admitted in a post at:
The operator was trying to enlist the aid of the internet Bitcoin and gambling community to track down for reward an online punter using the handle "Hufflepuff" who was able to manipulate the game and then make massive Bitcoin bets to consistently win, exploiting the flaw and making off with Bitcoin worth over a million dollars.
Reports in various online media Monday indicated that Primedice was completely blindsided by the activity, even at one point suspending the account and payments whilst they investigated. Having found nothing untoward, however, they re-opened the account and the brazen Hufflepuff continued to plunder Primedice's resources.
Primedice was eventually able to identify the flaw in its third software iteration that Hufflepuff had been able to subvert, and tried to negotiate a compromise with the unnaturally lucky punter.
He refused, and rubbing salt into the wound, discovered another flaw in the software, opened a new account, and took Primedice for a few thousand more before disappearing into the internet.
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