Major Bitcoin theft from website, claims owner

[cronus]

http://www.bbc.co.uk/news/technology-24871444

Major Bitcoin theft from website, claims owner

A man who ran an online "wallet service" for storing Bitcoins has claimed hackers stole virtual currency from his site worth more than one million Australian dollars.

The Australian man said 4,100 Bitcoins (US$1.04m, £650,000) were taken in two separate attacks.

He said he would not report the theft to police as Bitcoin transactions are virtually impossible to trace.

This has led some users to speculate whether it was an "inside job".

In a radio interview with ABC News the man, who only used his online name TradeFortress, denied being involved.

The Bitcoin virtual currency is increasingly used to pay for things online.

According to the Sydney Morning Herald, the theft occurred on 26 October but users were only alerted this week via a message he posted on the wallet service's website.

"I know this doesn't mean much, but I'm sorry, and saying that I'm very sad that this has happened is an understatement.

"Please don't store Bitcoins on an internet-connected device, regardless if it is your own or a service's."

(continued)

[Audley Strange]

Where did Skepticus go?

[mistermack]

Why on earth would you want to give your money to someone online, to keep in their ''wallet'' ? Unless it was a major bank.
I know fuck-all about bitcoins, but I did think that you could store them yourself, on a disk or memory stick.

You would have to be pretty dumb to just hand them over to a stranger, anyway.
I get the impression that most of the money involved is proceeds of crime, and they use bitcoins because they are hard to trace or tax.
Mind you, crime is a huge business, so there's a big potential market there.

[Trinity]

What a surprise. Why don't we all just use buttons? Simps. Or better, grains of sand. Sorted.

[laklak]

I think bits of different metals, stamped with various pictures, could be used to represent the value of various things. Like, for instance. two of the silver ones = 1 large chicken, 500 of the big gold ones = 1 automobile. We could carry them around with us and trade them for different stuff. You could get a big building with a locked room to keep them in, and then print pieces of paper to represent those bits of metal, and carry and trade those instead.

I know, it's pretty far out there, but I think it could work.

[MrJonno]

I think bits of different metals, stamped with various pictures, could be used to represent the value of various things. Like, for instance. two of the silver ones = 1 large chicken, 500 of the big gold ones = 1 automobile. We could carry them around with us and trade them for different stuff. You could get a big building with a locked room to keep them in, and then print pieces of paper to represent those bits of metal, and carry and trade those instead.

I know, it's pretty far out there, but I think it could work.

Those bits of metal aren't considered valuable because either the person buying or selling with them thinks its valuable, they are valuable because people with lots of tanks and missiles say they are valuable. If someone with a big tank said my snot was valuable then its time to turn nose picking into a commerical enterprise

[Tyrannical]

Bit coin could have been easily designed so that all transactions were traceable, but when the goal is to be anonymous so is theft.

[Jason]

[youtube]RATM: Bullet in the Head[/youtube]

[Xamonas Chegwé]

So. You have a small fortune in an untraceable, negotiable, anonymous currency and some bloke on the interwebz offers to look after it for you for a small charge. Sounds legit.

[MrJonno]

What's the crime anyway, I'm sure there is one but its probably not theft, unauthorised access to a computer,damaging software, copyright infringments?

[Jason]

I am not a crook. ><

[JimC]

Where did Skepticus go?

Bit coin could have been easily designed so that all transactions were traceable, but when the goal is to be anonymous so is theft.

Nail hit on head, I suspect...

[laklak]

So. You have a small fortune in an untraceable, negotiable, anonymous currency and some bloke on the interwebz offers to look after it for you for a small charge. Sounds legit.

Sure. They can't say stuff on the internet that isn't true, everyone knows that.

[Xamonas Chegwé]

So. You have a small fortune in an untraceable, negotiable, anonymous currency and some bloke on the interwebz offers to look after it for you for a small charge. Sounds legit.

Sure. They can't say stuff on the internet that isn't true, everyone knows that.

Good job too! Else how would we know about chemtrails?

The thing is, it is pretty easy to keep your bitcoins on a device that is not connected to the interwebz. You can then move a few (the amount you wish to spend at that time) across to an online device for the transaction to occur. Paying someone to keep them "safe" for you is asking for trouble!

My bet is that the guy that was running this "service" stole the shit. The nature of the currency means that it will be close to impossible to prove it unless he is careless in converting the stolen coins into more regular currency, or suddenly starts spending silly amounts! The fact that he didn't call the police because "what could they do?" speaks volumes.

BTW. I am far more trustworthy than that guy and can keep your bitcoins, gold, cash money and negotiable bonds safe for a VERY reasonable monthly fee. I also have a very big stick to wave at hackers, so there's no way they will come near me. Please contact me at bitcoinscamshop@dodgygeezer.com

[JimC]

XC wrote:

I also have a very big stick to wave at hackers, so there's no way they will come near me.

Yes, but do you walk softly?