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Tournament organisers scam clients with unauthorised money-making software  September 4, 2013 – 00:00

Tech Talk: Tournament organisers scam clients with unauthorised money-making software

This feature can also be found at the South West Londoner, here.A hidden function in globally used anti-cheating software generated almost $4, 000 for an e-sports company, statements revealed this week.

The E-Sports Entertainment Association (ESEA) distributed the program for users who would be competing in tournaments, but within the code was a function that uses computer processing power to earn a digital currency called Bitcoins.

Users noticed that their computers were running slower and electricity bills had increased, complaining on the ESEA website about the issue.

One of the website staff members, known as 'lpkane', issued an initial statement to the queries.
He mentioned that it was an idea between him and another staff member, 'jaguar', to implement the function as an April Fool’s joke.

He said: "Jaguar and I were talking about how cool it would be."

He went on to claim that they had disabled the mining functionality, after testing it on their own accounts for a few days. Then, a server error resulted in the 'joke' program being distributed to clients.

In lpkane's statement, he said that the program had been live for 48 hours and earned around two Bitcoins (roughly $280 at time of writing).

However, a more made by the ESEA owner, Craig Turnball, put the mining total at $3, 713.50, occurring over two weeks since April 13th.

He says that he was aware of the initial testing phase of the mining functions, but gave no instruction to apply it to user accounts.

Mr Turnball said: "We are extremely disappointed and concerned by the unauthorized actions of this unauthorized individual."

The Bitcoin mining function has since been removed from the software and the value of the Bitcoins mined will be donated to the American Cancer Society, along with a donation of the same amount from ESEA themselves.

There has been no mention of whether lpkane or jaguar have been identified as the "unauthorised individual" or if any action is being taken against them.

Some Background on Bitcoins
Established in 2008 by Satoshi Nakamoto, Bitcoins are electronic cash designed to be transferred with no exchange rate between computers, and can be converted into legal tender. Although the currency is used globally, it is commonly compared to US dollars in value.

They are ‘cryptographic’, using a complex coding system for authenticity and to ensure the same Bitcoin isn’t spent twice. Due to their non-corporeal nature, the actual value of Bitcoins tends to fluctuate often.

Source: specsandheadphones.blogspot.com

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  • How do new Bitcoins come into existence?
    Mar 30, 2013 by Boredom | Posted in Other - Computers

    Read some about this today and I am a little confused. If the entire Bitcoin 'currency' is peer-to-peer, how do the NEW Bitcoins come into existence to be purchased? And purchased from whom?

    Tempted to think the entire thing is a billion dollar scam unless I understand that part and I don't.

    • It's backed in math.

      Every group of computers that are mining are trying to solve a problem that's tough for computers to solve, which is to find the hash that has the appropriate number of zeros in it. It' …icate your work is the reason that they agree the new bitcoins are yours.

      Eventually that lottery ends though, there's a limited supply of answers to that specific math problem that are bitcoin acceptable.