Close to US$500k stolen in first major Bitcoin theft

[madfranks]

Bummer!

Link Here (http://thenextweb.com/industry/2011/06/15/close-to-us500k-stolen-in-first-major-bitcoin-theft/)

In the first Bitcoin (http://thenextweb.com/industry/2011/06/05/bitcoin-the-peer-to-peer-currency-that-hopes-to-change-the-world/) theft of its size, a user has lost 25,000 BTC (http://forum.bitcoin.org/index.php?topic=16457.0) — or nearly $487,749 at today’s market rates — to an unknown thief.
While the Bitcoin community has always been quick to point out that it’s harder to forge a Bitcoin than to forge a dollar, it’s quite easy to take someone else’s Bitcoins: all you have to do is gain access to their computer’s hard drive. Once you’re in, stealing Bitcoins is easier than taking a wallet in the real world, and there’s no recourse for getting them back.
That said, it is possible to verify the movement of funds to ensure complainants are telling the truth due to Bitcoin’s public nature — services such as BlockExplorer (http://blockexplorer.com/) allow users to see every transaction that has ever occurred through the network. The receiving account in this case, for instance, can be seen here (http://blockexplorer.com/address/1KPTdMb6p7H3YCwsyFqrEmKGmsHqe1Q3jg).
As a decentralized network with no authority and no identities attached to the addresses used to send and receive Bitcoins, once Bitcoins are stolen they’re as good as gone.
While at the time of this writing the BTC is trading at $19.51, I wouldn’t be surprised to see their value drop over the course of the day as this news spreads.

[Dogman]

Sounds like the system is as Leakey as a


82

[Neuro]

Wow did it go up to nearly $20 allready. So did this news make the price plunge? Certainly it is no good if it is easier to steal them than actually 'mining' them...

[Sparky]

Now this is what I'm talking about. As vulnerable as the FRN is to depreciation, there is a massive physical and logistical structure in place to protect it's day-to-day integrity that has global trust and acceptance, which is why it continues to serve as the world's go-to currency, and probably will for the foreseeable future.

It's ultimate demise may be inevitable, but the process will continue to be slow and insidious, interrupted by a few spurious surges. Think of it: it's lost 95% of it's purchasing power in less than a century, and yet the world still turns to it as a last resort. It's value lies in it's strength relative to all the other fiat currency options. It will continue until some other country exceeds the U.S. in military might, natural resources, available products and services, and intellectual property.

Now remember, I'm talking about currency, not store of value.

[Twisted Titan]

this is the best news yet

if people are stealing it must have tremendous "value"

[joboo]

Sounds like an inside job to me. Loose lips.

Anyone who leaves that much currency on their computer rather than burn it to a CD, and some thumb drives stored in a safe place is seriously not very bright at all.

[letter_factory]

I propose we mandate all tracking and identification of all bitcoin users via a social security nu---I mean, a personal identification number and that we limit all bitcoin transactions to 800 dollars. This will be the first step--I mean initial security steps to prevent such actions from occuring again.

[vacuum]

I propose we mandate all tracking and identification of all bitcoin users via a social security nu---I mean, a personal identification number and that we limit all bitcoin transactions to 800 dollars. This will be the first step--I mean initial security steps to prevent such actions from occuring again.

Hm. I think I'll keep running the current version of software. You can upgrade the code with your desired features and convince people to run it. (in other words, this is the difference between open source money and centrally controlled money)

[SLV^GLD]

Sounds like the system is as Leakey as a


82

How is that?
If someone breaks into your home and makes off with your PMs does that make the "system" leaky or does it make you diligence to protect your property in defect?

[Dogman]

How is that?
If someone breaks into your home and makes off with your PMs does that make the "system" leaky or does it make you diligence to protect your property in defect?


Good point, so far as important info as said in a post in this thread , sensitive electronic data, never store on a computer that connects to the Internet, store as said on removable media and only mount when used. And keep the Internet computer clean of all id and sensitive data as much as possible.

People get way too comfortable with their data and the net is full of hungry sharks.

The bitcoin thing does sound like some kind of inside job , how does someone know who to target ? This does not sound like a random hack. That is one of the reasons I am very Leary of the concept. And the system is leaky if it was not, something like this could not have happened. One thing to come at day or night physically to try and break in. Its a whole other thing when one can sit and hack at something as long as they want , to break in and the chances of being caught are next to nil, if done smart.

[Horn]

They should have been stored on 10,000 qty. - $50 USB sticks. LOL :cool:

[sirgonzo420]

The guy could've "stolen" his own bitcoins by sending them to a different wallet. Of course, there isn't any "bitcoin insurance" to my knowledge, so perhaps he is telling the truth.

He's still not too bright for having 25,000 BTC on an unencrypted wallet on an unsecured Windows work computer, especially after having told some people about his involvement with bitcoins.

Lol