Marijuana Black Market ‘Cannabis Road’ Says $100,000 in Bitcoin “Robbed”

Marijuana Black Market ‘Cannabis Road’ Says $100,000 in Bitcoin “Robbed”
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NEW YORK (InsideBitcoins) — Cannabis Road, an online black market for marijuana products, was taken offline today after it was reportedly hacked and over $100,000 in Bitcoin were stolen.

“Shortly after 10:15 a.m. UTC, I logged on to check on some things to notice that the balance of our wallet was near zero,” said Crypto, the developer and head of the site, as reported by DeepDotWeb.  “At first I thought it was a mistake, until I double checked, and tripled checked, only to find out, we had in fact been robbed not 15 minutes earlier.”

Crypto claims the thief stole a total of 200 BTC in 4 50-BTC transactions.

“At this point, I still have no idea how the coins were stolen, or who was involved. I am not, and will not, blame transaction malleability,” Crypto said.

Cannabis Road sold only cannabis-related products, including seeds, hash, oil and candies. Reddit member ehliminator said, “As an recovering addict I loved using an only cannabis market.”

This isn’t the first time that Cannabis Road has been hacked. Back in February, the site was shuttered due to poor programming and a disregard for proper security. As Crypto said in an interview at the time, “In the case of our original developer, he didn’t even know about preventing simple SQL injection.”

After that hacking, Crypto was brought on due to his experience developing in the deepweb. “I wasn’t the only one who was contacted,” he said to Deep Dot Web, “but the smartest people on the Deep Web are smart enough to stay away from developing and administering a market.”

The Deep Web is not indexed by traditional search engines and requires specialized Web browsers for access, such as Tor. It has been known to be the online home for many illegal black markets, including Silk Road, which was shut down by the FBI in October, 2013.

What makes the hacking so peculiar is the fact that Cannabis Road had implemented three levels of multi-signature security.

“Each one is more technical than the last,” Crypto said. In essence, this version of multi-signature technology grew out of the traditional wallet. It allows for an arbitrator to be introduced to the process. By offering three levels of multi-signature technology, Cannabis Road was providing users a choice in how they wanted to keep their accounts safe.

[See also: Bitcoin Might Be Safer than You Think]

“I don’t know if Cannabis Road will continue to exist or not at this point,” he said in his apology, “but now I know how Defcon [original developer of Cannabis Road] felt, because I know a substantial number of you will be pointing the finger at myself, Crypto.”

Crypto, at the end of his message, did hint that there was a chance Cannabis Road could return. “I am deeply sorry that I have failed you as a developer and a leader, and if I can figure out how this happened, maybe you will find it in your hearts to move past this and help us bring Cannabis Road back to life once again,” he said, ending his message with, “If not, it has been an honor serving you all.”

Written by Jacob Cohen Donnelly

About Jacob Cohen Donnelly