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Bitcoin Exchange BitFloor Says It Will Replace Stolen Coins
angry tapir writes "Bitcoin exchanges generally don't seem to recover that easily after security breaches. However, BitFloor, which was hacked and had 24,000 Bitcoins stolen in early September, is coming back online, refunding account holders whose coins were stolen and implementing new security measures, including cold storage for private keys." The key word is "intends" — but I hope it happens as promised.
Gives me the willies...
Of course it's not much different than paper currency I suppose, it's all make-believe anyway.
Nothing of value was gained.
They are going to resume operation and earn money via trading fees. Assuming they get enough volume the profits will eventually be able to replay the depositors.
In other words they will try to earn their way out of insolvency.
You can control any number of accounts in your wallet, and move money between them. So no one can tell what addresses are in your wallet and who (person) controls however many bitcoins. Two people having 10 btc might divide it up differently - 1 person has all 10btc in one address, the other has 10 addresses all with one. You don't know who controls what. The only way to find out is to get enough wallets with enough addresses in them that you can start identifying people for past transactions, but you can always invent a new address so you can't ever "watch" anyone.
But your honor, it couldn't possibly have been MY client who purchased those drugs. As you can see here, he clearly transferred $160 from his account <dude@hendrixfans.net> to some nefarious third party <cantcatchme@mailinator.com>, who by COMPLETE COINCIDENCE purchased $160 worth of drugs from about 30 seconds later. We have NO IDEA who this mysterious cantcatchme is, other than being a beneficent of my client's quirky tendency to email unsolicited funds to random strangers just to brighten their day.
Why NO, I don't think it's the LEAST bit suspicious that this is the 23rd week in a row that this exact sequence of transactions has occurred between these exact same participants. What can I say? My client is a generous man. Like the other day when he spontaneously sent $200 to <bogusacct@mailinator.com>. Perhaps foolishly generous, as Mr. bogusacct promptly sent that money to <cashier@pokerboss.net>, but can one convict a man for carrying virtue to excess? I say no!
-1, Too Many Layers Of Abstraction