BTC-E May Be Vulnerable To A Funds Duplication Bug

[UPDATE} We have been unsuccessful in recreating this bug, and it seems like a standalone incident, or a fake report. Keep a close eye on your exchange wallet balances just in case, though. 

In the light of the Bitfinex hack, other cryptocurrency exchanges are facing a lot of scrutiny right now. BTC-E is being targeted by some people who want to exploit the exchange and see if they can obtain free funds. One user reported a weird bug that lets him double the fiat currency balance to buy Bitcoin and withdraw the funds without repercussions. Always take these reports with a grain of salt, though.

What Is Going On With BTC-E?

Rest assured that every cryptocurrency exchange platform would see some strange exploiting activity over the coming weeks. If there is one thing the Bitfinex hack has taught us, it is how no exchange is completely invulnerable.In some cases, these exploits present themselves in a rather strange way, though.

According to a report sent to us via email, there is a new kind of bug on the BTC-E exchange. The user told us how he placed a fiat currency buy order for Bitcoin on the platform. After seeing it partially filled, the transfer was canceled in the hopes of buying slightly cheaper coins. This is not unusual exchange behavior by any means.

However, when the user refreshed the page – since BTC-E balances do not update automatically sometimes – he noticed his available fiat currency balance had somehow doubled. Visual glitches like these are not entirely uncommon either. Oddly enough, he was able to spend that increased balance to buy Bitcoin, and the full amount was credited to his account.

That brings us to a point where withdrawing said funds should be all but impossible. Interestingly enough, the user was able to withdraw all of his purchased Bitcoins to a self-controlled wallet address for the full amount. While not transaction ID’s were provided, this could be a serious bug that will make BTC-E insolvent very quickly.

Do keep in mind all of this is based on the testimony of one user who did not provide sufficient details to verify any of these concerns. We will alert BTC-E of this potential problem and see if they release an official statement on this possibly enormous problem. Anyone who obtained funds illegally this way should return it to the exchange as soon as possible.

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