UPDATE: PonziCoin Organiser Claims Site Was Hacked As Relieved Users Get Refunds

UPDATE: PonziCoin organiser Vort says the gambling site was hacked, and has begun refunding users, who are in turn confirming getting their deposits back.

He will be shutting down the site indefinitely.

Earlier, users of the online gaming site began complaining that Vort had run off with their money See below for details.

Here’s Vort’s full statement:

Guys, I’m terribly sorry I noticed the site was compromised last night with users being able to query the DB and what appears to be able to use my PHP RPC library to directly reach my local bitcoin instance. All deposits have been refunded…

I am trying to nail down exactly what happened and I will post as much here later today. Initially it is looking like some of the code was available externally via HTTP requests. I’m tracking down which were successful and what the consequences of that are.

Needless to say PonziCoin will no longer be taking deposits.

Apologies again for the gigantic cock up.

EARLIER: People are beginning to worry that a site called PonziCoin might be a scam. (via reddit user BookStoreProwler).

The premise of the site is simple: In a series of games, players would make bets according to the minimum and maximum investment limits.

As more players made bets, older ones would be repaid at 120% of what they put in. The more players who invested, the quicker and more payouts were made.

If there was no payout for 1 hour, the game would be reset, with all deposits lost.

There had been six previous “rounds” of what amounted to a form of gambling — and winners had actually been paid out.

But last night, PonziCoin organiser Vortuarackne posted a new set of rules to the game: The max deposit was raised to a full Bitcoin (more than $US600), the final depositor in the round would be paid out at 200%, and it woudl be from Vort’s own wallet. “We need to get this party started again – it’s slowed down too much!” he said.

The round began — and five minutes later it was over.

And there was no payout. You can see the panicked posts starting to flood the forum:

By one estimate, the PonziCoin creator or creators took home about $US7,000. Not an enormous amount, but a decent chunk for practically no effort.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.