The Bitcoin 5 mill $ hack

With reference to the news:


The Slovenia-based Bitstamp announced the breach on its website Monday and shut down services temporarily Tuesday in order to investigate the hack. The theft totaled about 19,000 Bitcoin, but hackers were only able to access a small portion of the exchange’s total assets. While some Bitcoins are stored online, many more are kept on local hard drives in what Bitcoin users call “cold storage.”

Our first analysis found that the core issues with this incident like other bitcoin related incidents are as follows

  1. The lack of security on the server / host computer OS where these wallets are stored. These Operating Systems needs to be configured with as much security as the usability aspects are handled, meaning, in security, usability and security are inversely proportional.
  2. The API and application that is written for users to interact with their bitcoins are a second flaw. There are many loop holes that has been discovered, especially with third party wallets, third party APIs etc. We have investigated incidents similar to this at a very smaller scale caused by application errors.
  3. The insider issue: there are hacks that occurs where an insider of the company enables such an incident to take place. Either it is a intentional hack or that a user’s computer is hacked by a virus/trojan/malware that in turn used the data from the intranet of the company.
  4. The implementation of the exchange itself. It is a possibility, but bitstamp is an established organization and has a great team, so I will leave this point at here. So that I cover all the areas related to the possibility.

The Cosmic HQ research labs team extends any kind of support and consulting to any individuals in the digital currency industry for cyber security related incident analysis. We have been doing such investigations almost every quarter, at least once, including forgot passphrase, hack issues, mis placed keys etc.


The security incidents in the digital currency incident is less compared to real world security incidents, but because digital currencies are IT oriented, they seem to get more attention.

Let us all work together to make digital currencies a success!

The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market. – George Soros

doesn’t digital currencies enable that???

Ofcourse, send me a message, always glad to help


Effectively Managing your digital currency mining infrastructure

Hello all,

Happy new year 2015!

It is not a good start for bitcoin this year, so, I though I should let you all know how to improve your mining infrastructure efficiency so that you might earn the extra penny from it.


There are only 3 things that you can change/improve to make the mining more efficient

  1. Power Consumption – To manage power efficiency you will have to manage the hash rate, clock frequency of each of your chips in the miner(s) and tweak them to perfection, because the factory settings that is provided is not effective, they are not completely tested. I have tested spondoolies, innosilicon and KnC miners and all of them could be optimized to work more efficient than what their factory settings were giving.
  2. Hash Rate – The hash rate can be improved by a bit of over clocking and removing the stupid beagle bone or Rpi or any ARM based device in the process. I use and always recommend miners to move to a host based mining, you will definitely get a better hash rate, guaranteed. I have seen 20 to 35% improvement in hash rate as the RAM in these ARM based devices are too small and the processor is too weak to manage everything else and then handle comm with the pool.
  3. Cooling – the ventilation and the rate of transfer of heat from the heat sinks are the 2 mechanisms to have efficient miner. but you need to understand the more you spend on cooling, the more the power cost. I have been working on free cooling and high CFM cooling within contained spaces, and I have got very good temperature variation on the chip as well as the device. The concept of hot and cold aisle inside a DC is not a real scenario for digital currency mining, just because that is not how these devices work! they are designed as a costly heater 😛

If you have questions that you specific to your infra, do message me, I am more than glad to help you optimize your infrastructure.


Happy mining.

Screen Shot 2014-12-26 at 10.03.57 PM




CUDA Miner Installation on a fresh Ubuntu 14.04 LTS


Step by Step Guide to Cuda Mining on Ubuntu 14.04 LTS (as simple as copy paste)

  1. After Ubuntu is installed and ready, click on the ubuntu icon on the side bar or press windows key on your keyboard type additional drivers and open the application. You will have 4 to 5 choices depending on your nvidia graphics card
    • Either select the one which has recommended
    • Or choose the one which says tested
  2. Apply the changes and wait for it to install. Once it is installed press Ctrl + Alt + F6 to go to command line mode. This is because during the installation of the nvidia driver inside the cuda toolkit, Xserver (the service that enables graphical user interface has to be turned off)
  3. Once in the CLI (Command Line Interface) type (without quotes) ” sudo su ”  and enter your password
  4. Now let us begin preparing the machine for Cuda Mining…
  5. Run the command (without quotes) – ” apt-get update “
  6. Run the command (without quotes) – ” apt-get upgrade “
  7. Run the command (without quotes) – ” apt-get install freeglut3-dev build-essential libx11-dev libxmu-dev libxi-dev libgl1-mesa-glx libglu1-mesa libglu1-mesa-dev libglapi-mesa libgl1-mesa-dri “
  8. Run the command (without quotes) – “cd /home/yourusername/Downloads” (Here your username is the name of the user, usually just press the tab key after typing /home/)
  9. Download the toolkit – run the command (without quotes) – “wget”
  10. Give execution permission to the file you just downloaded chmod +x
  11. Stopping the display service  (without quotes) – “service lightdm stop”
  12. Run the installer (the parameter override compiler will negate any compiler version issues)  ./ -override compiler
  13. Give yes for all questions, and when asked for the path where the cuda toolkit and cuda toolkit samples, press enter so that it takes the default location, it will be easier to debug.
  14. You might be asked to re run the setup after restart as the installer will try and remove the other drivers. Once restarted come back to the CLI using Ctrl + Alt + F6 and nagivate to downloads folder (without quote) – “cd /home/yourusername/Downloads/”. After that escalate privilege to root using “sudo su ” command, enter your password if asked.
  15. Run the command (without quotes)  – ” cd “
  16. Edit .bashrc file with the command (without quotes) – nano .bashrc
  17. Add the following to the end of the document – “PATH=$PATH:/usr/local/cuda-6.0/bin”, o the next line (press enter) ” LD_LIBRARY_PATH=$LD_LIBRARY_PATH:/usr/local/cuda-6.0/lib64:/lib “
  18. Press Ctrl + Y to close press enter to save. You will be back at the terminal. Run  the command (without quotes) : “source .bashrc”
  19. Run the command (without quotes) – ” apt-get install openmpi-bin openmpi-common libopenmpi-dev “
  20. Run the command (without quotes) – ” cd /home/yourusername/NVIDIA_CUDA-6.0_Samples “
  21. Run the command (without quotes) – ” make “
  22. Once the processing is complete and you are back at the cursor (make sure there are no errors.
  23. Run the command (without quotes) ” ln -s /usr/lib/x86_64-linux-gnu/ /usr/lib/ “
  24. Run the command (without quotes) – ” nano /etc/ “
  25. Inside the file add these 2 lines – ” /usr/local/cuda-6.0/lib64 ” ” /usr/local/cuda-6.0/lib “. Press Ctrl + Y and enter key to save and exit to terminal
  26. Run the command (without quotes) – ” nano /etc/ “
  27. Inside the file add these 2 lines – ” /usr/local/cuda-6.0/lib64 ” ” /usr/local/cuda-6.0/lib “. Press Ctrl + Y and enter key to save and exit to terminal
  28. Run the command (without quotes) – “ldconfig”
  29. Run the command (without quotes) – ” cd ~ “
  30. Run the command (without quotes) – ” cd /home/yourusername/Downloads/ “
  31. Run the command (without quotes) – ” wget
  32. Run the command (without quotes)- “mv” – For easy understanding
  33. Run the command (without quotes)- “unzip”
  34. Run the command (without quotes) – ” cd sCudaMiner “
  35. Run the command (without quotes) – ” chmod a+wrx configure “
  36. Run the command (without quotes) – ” apt-get install libcurl4-gnutls-dev  autogen automake libssl-dev libssl1.0.0 libcryptokit-ocaml libcryptokit-ocaml-dev libcrypto++-dev libcrypto++9 “
  37. Run the command (without quotes) – ” ./ “
  38. Run the command (without quotes) – ” ./configure “
  39. Run the command (without quotes) – ” make “
  40. Run the command (without quotes – ” ./cudaminer -d 0 -i 0 –benchmark “

Once this runs, it means you are ready to mine with cuda miner…


Will post how to mine with a pool in a couple of days..


Reply / Comment to this blog post or leave a message at contact section, I will reach back to you..


Happy Mining

Deadbrain 🙂

Shouts to Christian Buchner & Damian Gregory