Chinese Hackers Break Into NY Fed, Steal $100 Million From Bangladesh Central Bank

Tyler Durden's picture

Reports indicate that some of the stolen funds were traced to the Philippines, but given what we know about the "Cyber Axis of Evil," we can only suspect it was Iranians, Chinese, or the criminal/military mastermind Kim Jong-Un who was behind the scam, but whatever the case, someone, somewhere, hacked into Bangladesh's central bank on February 5.

According to Reuters, "some of the funds" have been recovered, but the bank didn't initially say how much or how much was initially stolen. We suppose that theoretically it could have been a rather large sum, as the country has around $26 billion in FX reserves on hand:

But just moments ago we learned from the AFP that the amount lost was around $100 million. "Some of the money was then illegally transferred online to the Philippines and Sri Lanka, a central bank official told AFP on condition of anonymity." 

"The bank reported that the USD 100 million was leaked into the Philippine banking system, sold to a black market foreign exchange broker and then transferred to at least three local casinos," AFP continues, adding that "the amount was later sold back to the money broker and moved out to overseas accounts within days."

And here's the punchline: According to AFP, Chinese hackers have been blamed and the money was stolen from accounts held at the New York Fed...

("They stole about this much, I'd say")

This afternoon, the Fed was out with the official denial, saying only this to Reuters: “To date, there is no evidence of any attempt to penetrate Federal Reserve systems in connection with the payments in question, and there is no evidence that any Fed systems were compromised.”

Was Dudley penetrated then, or not? We'll have to wait on the official investigation.

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BullyBearish's picture

They won't miss it...they have plenty...

Tao 4 the Show's picture

Well, now there's a confidence builder...

LowerSlowerDelaware_LSD's picture

"All your printed dollars are belong to us."

Tom Servo's picture

AAAAAAnd.... IT'S GONE!

 

ParkAveFlasher's picture

At least the American taxpayer will no longer have to pay extensive storage fees on that $100 million!

HowdyDoody's picture

I think the Chinese hackers have just passed their Bankster Entrance Exam.

 

techpriest's picture

Given a big target like the Fed, odds are that any unpatched box sitting out on the Internet will be owned in minutes. As one Fed employee put it "people have no idea how vulnerable the Fed/financial system is to an attack." Esp. with insecure communications like Hillary Clinton's emails.

BuddyEffed's picture

Doesn't this theft make a good case for the banning of all electronic cash larger than $500?

The criminal element and criminal mindset are just emboldened by the ease of using electronic cash in their nefarious ways.

knukles's picture

But when they put YOUR money on line, it will be safe.
                  They guarantee it.
                 fingers crossed behind back

I need more asshats's picture

Sum ting oy vey.

China hacker leave Passport and IP address on FED doorstep.

Meanwhile in tel aviv..... the party continues.

cheka's picture

chinese, eh?  never heard the blood thirsty parasites called that before

kind of like the irish thugs of detroit

OilCaptain's picture

Makes one kind of question the integrity of a "cashless society."

 

 

KesselRunin12Parsecs's picture

Chinese hackers ~ lol... More like IsraeRi hackers fingering Chinese with the BRame...

 

Doesn't this just want to make you go out & get urself some BITCOIN? ~ lol (what could POSSIBLY go wrong)?

Beatscape's picture

The hacker story is a ruse.  It's really back door helicopter money; QE-BD.

Manthong's picture

Geez, it’s not like it was real money or anything……….

chumbawamba's picture

And then they bought a bunch of houses in the San Francisco Bay Area and Vancouver, thereby turning crawl spaces and shacks into highly desirable real estate.

The End.

I am Chumbawamba.

KesselRunin12Parsecs's picture

Balfour Decraration 1a

 

Anyway ~ It's not like, to achieve the heist,  John McClane was exactly chasing a caravan of dump trucks now was it?

 

(Dancing Israeli's on the tops of vans on the escape route, cheering the dump trucks on, notwithstanding)...

KesselRunin12Parsecs's picture

BlockHEAD chain

 

Let me take a WILD FUCKING GUESS...

 

About 10 minutes BEFORE egg/block head comes out with the ALL TIME UNHACKABLE enctyption... the same person will have first, come up with an encryption to HACK it...

 

Jesus Tapdancing Christ you people are stupid...

nuubee's picture

"About 10 minutes BEFORE egg/block head comes out with the ALL TIME UNHACKABLE enctyption... the same person will have first, come up with an encryption to HACK it...

 

Jesus Tapdancing Christ you people are stupid..."

 

Right, we're the stupid ones. The ones using open-literature mathematics, which if anyone in the world broke it they would make themselves renowned for doing so, to obscure information... we're the stupid ones. Constant-incentive-to-break encryption, which is tested every day, that's dumb, but someone who can't be bothered to spell the word encryption properly, or even understand the definition of the term "hack"... you're the smart one... right...

Go to the library, or internet resources, take some linear algebra and statistics courses on your own time, and on top of that learn how to use computer software to write such algorithms, and then get back to us about which one of us is stupid.

KesselRunin12Parsecs's picture

"Why didn't I take shop"

~Johnny Dangerously

 

(& if you geeks want me to spell 'encryption' correctly, put down the goddamned pizza flavored fucking hot pocket, & INVENT a fucking better keyboard where the t's & r's don't get stuck togethet) ~ tmfao

giggler321's picture

Just like to point out - had the Fed had this in CASH - they wouldn't have been able to digitally transfer it thus stopping such CRIMES

Handful of Dust's picture

I think the Chinese [or Russian or Iranian or isis or whomever] hackers would win the minds and hearts of the American people if they hacked into everyone's accounts and deposited $100k instead.

marts321's picture

So we'll replace electronic currencies backed by nothing physical whatsoever... with electronic currencies backed by nothing physical whatsoever. The definition of insanity is doing something over and over again and expecting different results.

 

And you think you're intelligent just because you know maths? LoL. Smart maybe, but certainly not wise.

anarcode's picture

Actually it does. A billion dollars of bitcoin can be safely stored on a small piece of paper, away from hackers.

peddling-fiction's picture

Nothing a new SQL programming statement can´t fix.

People don´t understand that this is funny money in databases.

Until it is fully backed by gold, it will continue to be quite funny.

City_Of_Champyinz's picture

But do not worry, according to Hillary there is no possible way her unprotected bathroom FOIA-proof server could have been hacked by the Chinese/Iranians/Russians/etc...

Miles Ahead's picture

@Pinocchio: People do understand.  You don't understand... It's funny until it reaches the PI and hits the streets there and elsewhere.  If you put it to use as legal tender for something of value then it's no longer funny; it becomes altogether serious.

Digital or not, someone in Bangladesh will feel the pain.

BTW, if you don't care about digits, write some SQL code and send some 0's and 1's to me...

Countrybunkererd's picture

I will skip the SQL:

10101010101010

Ok, this post cost me about 25 bucks...

ZH costs me a lot in lost productivity, Ok i cause the issue, ZH has no blame on that one.  But what the hell is the point of being productive anymore when they add so many zero's before you can convert the money.  We are all holding wheelbarrows of paper like Weimar until conversion to real money.

Miles Ahead's picture

What's real money???  Even GOLD and SILVER are worthless, except for their industrial uses, then so is copper and lead.  What's real money?  Whatever you say it is.  A plastic card is money if it allows you to show it then receive goods and services (not to mention, food).

Theosebes Goodfellow's picture

Why's everyone got their panties in a twist? I mean, it's just zeros and ones on a computer somewhere, isn't it?

Proofreder's picture

10101010101010 Binary equivalent $10,922 Decimal.

were you going somewhere with this ???

or just diddling keys.  Best guess is diddle, or fiddle perhaps.

Kayman's picture

Why would the Chinese hack her server when they already paid handsomely for full access?

TBT or not TBT's picture

The big problem was Hillary, a sworn enemy of the United States, having been given access to state resources.   More than half the senate aided and abetted to put her in that position.  That's where we are now.  

Kirk2NCC1701's picture

In that case, when should we expect to see her hacked emails on any number of websites?  Sorry, but I favor Evidence over opinion.

Urban Redneck's picture

No SQL needed, because the only databases that those digital USD collars can even exist in are located in the 12 Federal Reserve District Banks, and those dollars can only be transferred WITHIN THE FRBNY database between CUSTOMERS (i.e. Banks as depositors) of the FRBNY or other Fed District Branches.

If Jamie Dimon gave a $100 million in CREDIT to some slant eyed hacker in Podunk, Philippines... that should be HIS PROBLEM, perhaps he can pawn his cuff links.

Yes, one can hack into the FED, but a wire does NOT transmit money, it's only a proprietary instant messaging platform, and those digital dollars CANNOT exist outside of the Fed databases, so it's actually IMPOSSIBLE to "steal" that money, one can only con member banks into issuing a request for another bank to issue CREDIT to the thieves that the first bank will then "cover", but NO MONEY ACTUALLY MOVES ANYWHERE. That $100M is still right there on William Dudley's Commodore 64 (or IBM mainframe).

If these ass clowns want to push the abolition of PAPER banknotes, then they should he held to account for the REALITY of the digital system they are trying to push everyone into, and the IGNORANCE of the sheeple who are being pushed into this system is frankly appalling, and just lets these fuckers STEAL even more from their ostensible CUSTOMERS.

CAVEAT EMPTOR.

SteadfastTemplar's picture

 

 

 

Replacing our paper Fiat with Electronic fiat will surely fix this. Then our savings will be nice and safe on some computer server somewhere. It is always better for the central banks and big brother to be the ones to inflict capital controls asset confiscation...rather than a Chinese hacker.

 

Just don't give Hillary Clinton access.

 

 

 

 

 

 

Miles Ahead's picture

Attention whore... love those cute carriage returns!

Proofreder's picture

took advertising 101; use of white space

Creative, Cool, and quite unnecessary more than once.

Antifaschistische's picture

it's so comforting to know, that when physical fiat is outlawed, our electronic fiat will be safe at Liberty Street.

......oh wait!!

note to Bangledeshis:  ....you should have bought gold, for some wierd reason, hackers don't steal it.

Chuck Walla's picture

"But when they put YOUR money on line, it will be safe.

       They guarantee it."

In the lockbox right next to your super safe medical records.

FORWARD SOVIET!

curbjob's picture

So ponzi money was transferred from a casino in New York to casinos in the Philippines  ... seems like a non story ?

Countrybunkererd's picture

another day at the office.  Except that nobody knows the co-worker.

Kirk2NCC1701's picture

Makes you want to move to an offshore farm or condo, and start hacking, rather than blogging.  Hey, Simon Black, do you rent out your Santiago flat on timeshare?

JamesBond's picture

amazing how such a corrupt financial system we have in the united states makes us cheer for some small bit chinese hackers getting away with a little theft themselves from the goliath.  hack on brothers.  

 

jb

Yuubokumin's picture

Those hackers' intellects would get them instantly banned from getting any employment in a banking or financial institution, and in all likelihood did sometime in the past. They'd have to (as have Tylers, as have some hedge fund managers, as have many a swing trader) hustle and eventually embrace the road of the self-made entrepreneur.

the wave of the future ? ?