RESOLVED: Oshi.IO scam

I made a deposit of 4 BTC into this wallet as directed by Oshi to be able to play.

3JciXUmXr4oAQJxRrL51sbKNmEwM7D9g1B.

I won 6.6 BTC whilst playing and Oshi are refusing to return deposit and winnings, claiming the deposit I made is a double spend. How could it be a double spend? I deposited, I withdrew, then I deposited again. Oshi has also used up the bitcoins onto their onforwarding addresses and it is in their hands. Seems like these guys do not know anything about the blockchain as if there was a double spend then the network would of forked or flagged it, neither of which has happened. The transactions have successfully gone through.

They also said they would return the initial deposit of 4 btc which has not happened.

Username is h0p3less and this has been an ongoing issue for two weeks now. Have constantly tried live support but live support is non existent and in Russian??

Hi h0p3less,

Sorry to hear that. PM me your casino username and we'll contact the casino to look into it. 

Hello the usedrname is h0p3less

Disclosure: Nick Garner here, CEO and founder of Oshi

Background to this complaint
this person has been on AskGamblers, Bitcoingg and Bitcoin talk trying to put forward his case as a hurt and mistreated customer who suffered a scam in our hands. It's not true. In fact, he has scammed us for 2 Bitcoins.

The problem is that he knows he'll get some attention by making accusations about being scammed. But my view is that it's an opportunity to rebalance things and to explain some more about double spend attacks and to show you that were transparent and accountable as a legitimate business.

Background to this player:
When we look for abuse, were looking for patterns. As I mentioned earlier, the pattern for double spend attacks is absolutely obvious.

This was my response on AskGamblers, who incidentally closed to the complaint in our favour.

OSHI CASINO
POSTED ON OCTOBER 16, 2016.
Disclosure: I’m Nick Garner, CEO and founder of Oshi casino.
Since complaints always interest our perspective customers I thought I’d take this opportunity to deal with a few things:

• Background to cases like this
• The case in hand
• What were going to do about it

Preface
There is often a taut relationship between customer and casino. Essentially as a customer your trying to win money from the casino and if casino is unfair, they’ll try to withhold money from you. It all ends up being a bit intense.

That’s why I’ve constantly stood by being honourable and fair, because in the end you have trusted us with your money.

But, recently we have so many people attempting to abuse this trust, that were in loss this month. If we carry on in loss, you won’t have a casino to go to.

Anyhow, please read on since I guess you want to know what my conclusion is.

Background to cases like this
There’s a new scam being perpetrated across Bitcoin casinos. It’s called the double spend attack.

Essentially it relies on a casino being user-friendly and allowing customers to withdraw cash immediately after they have won money, even with no Blockchain confirmation.

In practice, it’s risky because you might just lose, but if you win…then in theory, your winning money for no outlay.

Fortunately, we have now closed these vulnerabilities both from our end and from the payment Gateway site (cubits), which is why there was a delay in responding to this case and why I can talk openly about this now.

The case in hand
When we look for abuse, were looking for patterns. As I mentioned earlier, the pattern for double spend attacks is absolutely obvious.

I’ve looked through the data and this customer shows a pattern that is completely consistent with double spend attacks.

This person made a fairly substantial deposit and exactly 15 minutes later attempted to withdraw the total deposit.

Then he proceeded to make 10 smaller withdrawals in the following two minutes. Then 28 minutes after his first substantial deposit, he placed exactly the same deposit and then within nine minutes of that deposit, began making repeated small withdrawals so he would avoid being flagged up by Customer Services.

Where it all went wrong for this person was when they tried to withdraw 4.6 BTC, which then alerted Customer Services… And here we are now.

As I’ve said earlier, this case is completely consistent with a double spend attack. What makes double spend attacks convincing is that a customer can reference a particular transaction hash code and say “here is my deposit” - just as this person has done here.

But as you now know, that’s only a small part of the whole story.

What also annoys me is that this unscrupulous person decided to go to AskGamblers and leverage our goodwill to essentially extort money from us. I’m not happy about that.

Graph showing the transaction trail: 

----

It turns out he actually made two Bitcoins in profit from us. Of course Im annoyed, but I'm past this now. So I'm not really sure why this person keeps persisting with this negative campaign, when the facts surrounding his double spend attack are so obvious.

Nick Garner here (CEO and founder of Oshi Bitcoin Casino) . Just on his point about returning the initial deposit, we have only seen one actual deposit of four Bitcoins. A double spend attack is explained in detail here https://en.bitcoin.it/wiki/Double-spending

 This person withdrew a total of 6.6 Bitcoins, therefore in fact they have profited by 2.6 Bitcoins through their double spending scam. 

I've written a lengthy reply below. 

Just on a personal note, I don't get why this person is being so persistent when the facts prove so conclusively that they perpetrated a double spend scam. :-( 

Hi H0peless,

As Nick mentioned above, turning to a new forum to spread inaccurate claims about an operator will most certainly not solve any problems you may be encountering.

We are doing everything we can to protect ourselves as well as other operators from mauliscious activity such as the one explained above, leveraging a company's reputation via public forums/referral sites will not change the fact that suspicious/fraudulent activies were exposed.

Marko Csokasi

Operations Director

Oshi Casino

Nick please hire an actual bitcoin expert to verify what you are saying. You talk about hashes? That doesnt have anything to do with this. You say you only confirm 1 deposit of 4 btc to you guys? Have you even checked the blockchain reports? Either block explorer or blockchain.info. all blockchains confirm i have deposited 4 btc, withdrew 4 btc and deposited 4 btc again. Meaning 8 to you and 6 back to me (the first 4 i withdrew and 2 the second time around) you guys are 2 on top of me. That article u linked it says a double spend attack is when a user spends the same bitcoin twice succesfully. How have i done that???? I sent u 8 different bitcoins whixh you all have. How have i sucessfully done a double spend attack? Please ask around bitcoin experts and they will tell you this isnt a double spend guaranteed. If you can get someone reputable or post this up on bitcointalk and if the forum members can verify this was a double spend attack then sure i will stop. But this is not a double spend attack. I deposited 4, withdrew 4, deposited 4, then only able to withdrew 2. So i am down 2 bitcoins, how are you saying i am up 2 bitcoins from you guys???

i have pasted my deposit address in the first post which was supplied by your casino. Anyone that knows bitcoin can search it up to see that i have successfully deposited 4  + 4 bitcoins which your casino has onforwarded to your address. You have full possession of it. I only made two deposits which have gone through successfully. Please tell me where the double spend is and all relevent blockchain information so people can verify that information for themselves and we can put this behind us

Am on mobile so had spelling mistakes

Nick i would also like to quote this from you

"Essentially it relies on a casino being user-friendly and allowing customers to withdraw cash immediately after they have won money, even with no Blockchain confirmation."

Nick your casino does not allow any withdrawals until the deposit the player has made has at least 1 confirmation. It is in your F.A.Q and it even says that when you try to withdraw. That box powered by Cubits or whatever does not allow it when you withdrew. It would say something like "still awaiting confirmation of your deposit" Please try it for yourself to see what it says. It sounds like you dont even understand how your casino works Nick. 

Marko Csokasi and Nick, I am going to try to explain this as simply as I can and show you proof.

Below is in detail steps of exactly what I did, and when I did it

1. I opened up an account with Oshi.IO casino. I went into my account to retrieve the bitcoin deposit address as supplied by you guys. This address is 3JciXUmXr4oAQJxRrL51sbKNmEwM7D9g1B

2. I made a deposit of 4 BTC into this address. The transaction ID for that is here
https://blockchain.info/tx/67643826693a43411bce4c51713b0491989d14a1346c93e7f84a21b9291e126c

As you can see , the deposit happened at 2016-10-08 2:06:23 and was first seen during block ID 433378
The first confirmation was seen at block 433379, which took 2 minutes for the first confirmation to happen. So it was 1st confirmation at 2:08:15, 2 minutes after I made the deposit.
It now also has 2314 confirmations, so this definetely has gone through to you.

3. I proceeded to play blackjack, I was up for 1 round then lost half of my money, before finally breaking even again. I thought I better come out break even before I lose all my money.

4. I then made withdrawals for my 4 BTC out in alot of small increments. This withdrawal was done to 1GjEDytM5bKKYtcrYrrd4oDYMyryCCaQev.
The first withdrawal transaction ID is here
https://blockchain.info/tx/daded35210a91f4e19887feb268af37b5aaa1abe7a0f0bdf7039a80269747a98

As you can see, the request time was 2:25:34 and was confirmed right away, so my withdrawal request was done 17 minutes after the first confirmation had happened. This is noted in block433382, so from my deposit until my withdrawal request, it would of had 3 confirmations.

5. After abit of time the gambling got the better of me and I decided to retry my luck. I made the deposit of 4 BTC again,

This is the transaction ID for it
https://blockchain.info/tx/95594c914e25ecca361b0885dabc663260e9b6547fdd39307810e2c93bdd2e1a
Received at 4:33:47 by the network, abit over 2 hours of my first deposit.
This one took 61 minutes for first confirm, it was first seen in block 433392 and 1st confirmed in block 433400.
It now has 2294 confirmations.

6. I went back to the blackjack table and played, I was up and down. I first tried to withdraw when I was up to 5.5 BTC but it said "Still awaiting confirmation of your deposit" So I continued playing. I got up to 6.6 BTC and tried again. This time I was able to. I then withdrew 2 BTC (4 x 0.5 BTC withdrawals)
The first one is here
https://blockchain.info/tx/dd33ced73649351c1af20fc905846b4e92761660ea037268176b85028bc3cfe8

Its receival time is 5:47:10 and took 7 minutes to confirm. So 14 minutes had passed from first confirmation till my withdrawal.

7. I thought I dont want to waste anymore time making these small withdrawals as I had to go, so I made the bulk withdrawal for 4.6 BTC. That is when you closed my account.

Now, I do not own any blockchain explorer sites, the blockchain explorers display data that is neutral and its information is confirmed several times world wide. You would need 51% of the network hash power to be able to control it to your will, this I do not have nor does anyone or any mining groups. If I did I would be stealing billions from Chinese exchanges, not a couple of bitcoins from an online casino.

You guys say I am the scammer but please tell me exactly where in the steps I have done wrong. Where is the scam? Have I left anything out that I have done?
So according to this, I have deposited 4+4 Bitcoins which you have received, and sent off and used somewhere. This is proven in the blockchain ledger.

While I have only received 4+2 Bitcoins from you guys. So I am the one down 2 bitcoins + whatever I won. How are you saying that I have scammed you guys 2 bitcoins? The maths do not add up.

Nick you keep saying I have done a double spend attack, but the blockchain ledger has fully confirmed that my transactions are legit. My transactions have not been flagged as double spend, are you saying that the ledger is wrong?

Here is what an example of what a double spend attack looks like
https://blockchain.info/tx/4de9ee56b11476a80bcfcbeb2fae37fd9c842320cb3b4301ef1616fac07c79fa

It clearly says at the top "Warning! this transaction is a double spend. You should be extremely careful when trusting any transactions to/from this sender. 184253214"
That has 0 confirmations while its double spend attack "184253214" has 1 confirmation. You can click on it and see for yourself. This is what a double spend attack is, when the same bitcoin is being used to two different addresses. Where has this occured for my transactions?

Also a few points on what you have said

"Nick Garner here (CEO and founder of Oshi Bitcoin Casino) . Just on his point about returning the initial deposit, we have only seen one actual deposit of four Bitcoins. A double spend attack is explained in detail here https://en.bitcoin.it/wiki/Double-spending"

- No you have not only seen one actual deposit of four bitcoins, the blockchain ledger has proven I have sent you 2 lots of 4 as proven above. Anyone can check this information for themselves.

"This person withdrew a total of 6.6 Bitcoins, therefore in fact they have profited by 2.6 Bitcoins through their double spending scam."

- No see you are mistaking what you think are facts again, I withdrew 4 + 2 so a total of 6. Again, this is proven on the blockchain. Not 6.6

"Just on a personal note, I don't get why this person is being so persistent when the facts prove so conclusively that they perpetrated a double spend scam. :-( "

- Please show the facts, I have shown you what a double spend attack looks like, and this is nothing like that. I have proven to you that there were many confirmations and time had passed before I made my withdrawals. As in the link you provided, Double-spending is the result of successfully spending some money more than once. Bitcoin protects against double spending by verifying each transaction added to the block chain to ensure that the inputs for the transaction had not previously already been spent.
I have not spent the same bitcoin successfully more than once, I sent you 8 different bitcoins, which have all been confirmed succesfully, and confirmed over 2000 times in fact.

You guys say I am spreading inaccurate claims and trying to make you look bad, well anyone that is familiar with bitcoin and its blockchain ledger can see for themselves. All the addresses are there, they can verify the information I have provided. No double spend attack has taken place.

You claimed I made withdrawals before the first confirmations of my deposits happened but I have proven otherwise. The timestamps noted by the blockchain ledger prove it.
I will be pasting this to askgamblers and bitcoingg as well as it seems they have just taken your word for it without verifying facts, it may be because they are not that knowledgeable about bitcoins blockchain themselves.

Please tell me where the double spend attack happened and I will shutup, else hire a bitcoin expert to ask for their expertise so we can put this behind us already.

And please dont say that the bitcoin ledger is wrong, that would be very silly thing to do if you are planning to run a casino based on bitcoin.

Disclosure: I'm founder and CEO of Oshi

h0p3less has finally reached out to me directly and were sorting this out now.

For everyone watching on the sidelines, here is my take:
- initially the facts show this person has done a double spend attack
- assuming he did do a double spend attack, he took us for 2 Bitcoins
- h0p3less says were withholding two of his Bitcoins
- he has done a great job at tarnishing our reputation for no particularly good reason
- I don't claim to be a Bitcoin expert, that's why I have Travin who is a genuine expert in this area.
- Because this person has never gone through an identity check in our casino, I had no idea who it actually is. This lack of accountability disturbs me
- therefore, I don't know if it's a normal balanced person who has been unjustly accused of something, or whether it's a 'crazy Internet blackmailer' just causing trouble.
- I've asked him to contact me directly and now were finally dealing with this one to one

I think it's wrong just to pay this person because they stir up trouble and so I am going through a very time-consuming investigation which will involve Travin (our own a Bitcoin expert) , Cubits (the payment processor) and SOFTSWISS (the operator) to be 100% clear on the facts as they are.

My problem with double spend attacks is that we have to work with circumstantial evidence. I'm okay with circumstantial evidence, because if a court uses it to indict somebody then we can make a judgement to if the evidence is good enough.

In any case I want to
- not be blackmailed into just paying because this person causes so much trouble
- do deeper investigations on this to get more facts
- resolve this based on the facts as we find them. If it goes against h0p3less , then expect a lot more rubbishing of Oshi online.

In Oshi there is an internal mantra which is 'don't be evil'. Evil is just taking people's money on some random excuse. We don't do that.

If you ever check me out or read some of the backdrop to this business you'll know that were very principled and our objective is much bigger than just making money. We want to make gambling a better experience... And then stuff like this happens. So were sorting it out with h0p3less directly.

That is fine thanks Nick, I have laid out all the facts I have done and verified that information on the blockchain which cannot be manipulated unless you have 51% of the network. This is public information so anyone can look into it. Thank you

Quick extra note: h0p3less and I have been emailing, I've got three people working on this investigation so hopefully will sort it out very soon.

For a double spend to happen, someone has broadcast two transactions that share the same input and total more than the available Bitcoin.

They will both appear on the network as unconfirmed until one of them is confirmed.

Whichever is confirmed first will work, the other one will eventually be pruned from the network as if it never happened.  You won't find any trace of it on most blockchain explorers (like blockchain.info)

However blockcypher.com does. This is an example

It shows the double spend warning and 0 confirmations since the Bitcoin went somewhere else.

The same transaction cant be found on blockchain.info. Example

You haven't shown any evidence of a double spend (unless I missed something, which is possible) and I haven't found any myself.

Assuming this is the players deposit address: 3JciXUmXr4oAQJxRrL51sbKNmEwM7D9g1B (It is definitely an address controlled by cubits)then there were definitely two deposits for 4 Bitcoin Each about 2.5 hours apart.

2016-10-08 02:06:23 3JciXUmXr4oAQJxRrL51sbKNmEwM7D9g1B received 4 BTC, TXID: 67643826693a43411bce4c51713b0491989d14a1346c93e7f84a21b9291e126c

2016-10-08 04:33:47 3JciXUmXr4oAQJxRrL51sbKNmEwM7D9g1B received 4 BTC
95594c914e25ecca361b0885dabc663260e9b6547fdd39307810e2c93bdd2e1a

The players main address is 1GjEDytM5bKKYtcrYrrd4oDYMyryCCaQev it sent both 4btc deposits and received a bunch of smaller deposits.

These addresses were also used in transactions that shared input or outputs with the 1Gj wallet. (No other addresses were used)
16ZjTc2sMwkXhiCPMs99dWfJS3sUEor2ps
1LKmAMdi9g8TnzbU5FkYyy8dQZQ9WKe94r
1JWii56ECnVBQp32nzrQcKdfDWQt5RkmxL

None of them are showing any double spend activity on blockcypher.

If there was a double spend attempt, what is the address that a transaction was broadcast to that never confirmed?

After reading this aIl I can say is WOW!!!!!

This Ceo would make not want me to ever deposit again in an online casino.

There is a proverb in the USA though I am sure across the world "The customer is always right".

I am shocked to see this owner make such a big deal (with graphs, piecharts, bitcoin terminolgy etc.) The assertive language and tone by the answers is awful especially by an owner!!

If the casino is worried about a measley 1200 dollars in bitcoin iamgine if someone WON 15 or 20 btc from this casino. Would there be a long speech or a polygraph test to assure the winnngs were won. 

Customers are the ones that keep a casino open or for that matter any business.

I dont see a problem with the Rep's response. there is a lot of fraud going around, players tyring to cheat the casinos in various ways. So i would not be siding with this player just yet.

and mind these two Reps actually bothered to reply and explain the background of this case. to me that counts for something.

Nirvana-

I can see your point. Though people commting fraud, scams, etc. have been going on for decades.

Part of business and is projected bottom line is to account for this kind of stuff even though it is 100 percent unacceptable.

I just did not like the owner's tone.

Ciao