The basic backdoor behind Cryptsy's disaster

Some context:

Cryptsy Blog - Announcement

About a year and a half ago, we were alerted in the early AM of a reduction in our safe/cold wallet balances of Bitcoin and Litecoin, as well as a couple other smaller cryptocurrencies. After a period of time of investigation it was found that the developer of Lucky7Coin had placed an IRC backdoor into the code of wallet, which allowed it to act as a sort of a Trojan, or command and control unit.

. . .

These are the approximate figures taken: Bitcoin: 13,000 BTC Litecoin: 300,000 LTC

Cryptsy Threatens Bankruptcy, Claims Millions Lost in Bitcoin Heist

The exchange alleges in a newly released blog post that it was the target of a hack in July 2014, an incident that it said cost it approximately 13,000 BTC ($7.5m at the time) and approximately 300,000 LTC (then $2.08m).

Unless the funds are recovered or a buyer is able to cover the losses, the post continued, the site will be shut down and bankruptcy declared.

Bitcoin Price Falls 15% Amid Network 'Failure' Claims

The declines came amid a frenzied media response to the much-discussed exit of BitcoinJ developer Mike Hearn from the bitcoin project in which 30 media outlets seized on his claims the still-operating network had 'failed'.

Today also saw claims from embattled digital currency exchange Cryptsy that it has been insolvent since 2014 after a hack resulted in the theft of millions of dollars worth of bitcoin, adding to a negative media outlook.

/r/programming Thread Parent Link - github.com