Bitcoin Exchange Flexcoin Wiped Out By Theft

mrspoonsi writes "Joining MtGox, Flexcoin today announced they have had their vault wiped out, to the tune of some 896 BTC (about $615,000) by hackers. 'On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 BTC, dividing them into these two addresses: 1NDkevapt4SWYFEmquCDBSf7DLMTNVggdu [and] 1QFcC5JitGwpFKqRDd9QNH3eGN56dCNgy6. As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.'"

Comments

Unregulated currency

[BitZtream]

rocks ... doesn't it.

This is what you wanted right?

Seriously, if you come here to talk about how this isn't a fundamental bitcoin problem, you deserve to have your noise smacked with newspaper like a dog.

The only 'benefit' bitcoin has is that its unregulated and not as well watched by the government ... which means its easy for people to just steal your money and lie about it ... I'm sorry, its easy for someone to setup an exchange and let someone else steal the coins from the 'hot wallet', whatever the fuck that is.

Before you open your mouth to defend bitcoin ....

THIS WHAT WE'VE BEEN TELLING YOUR STUPID DUMB ASSES ABOUT, NOW SHUT THE FUCK UP, ITS A SHITTY IDEA.

Re:Unregulated currency

[hodet]

Ok, well I know you are a bit emotional about this but I will chime in anyway. All the problems we have seen with thefts have had nothing to do with the Bitcoin protocol. The problems have been in trusting your stash with companies that have no business being trusted. It's the equivalent of leaving your bag full of cash with Lenny down at the bowling alley because he has a safe in the basement. Flexcoin, Gox et al., -- Why would anyone trust their funds to these people? These fly by nights are either a bunch of incompetents or just plain old crooks.

Bitcoin itself is not a shitty idea. The problem right now is that bitcoin is very young and there is a 'wild west" aspect to it. The infrastructure will mature.

If you feel so strongly about it then just don't use it. What's the problem? But to say a system that offers frictionless payments is a shitty idea and should not even be attempted is stupid. There is a huge need in the world for this right now. The ride will be bumpy so buckle up.

One last thing and more of an open comment to people who have bitcoin. "Don't be a dumbass and let Lenny hold your bag of cash for you!" Geez does it even need saying?

surprised!!!!

[globaljustin]

Not!
Which one is next?

right. fine. I'll give you the benefit of the doubt...but hilariously, all the rabid Bitcoin defenders have all gone away here on /. only to be replaced by its critics.

i can't help but think that some of the posters who are saying "I told you so" were also big time Bitcoin fanbois a few months ago

look at this discussion, from early December, when I **dared** to ask if Bitcoin had peaked: http://yro.slashdot.org/commen...

look at the mods...

I want /. to do better on this...MtGox and Bitcoin were hype, and sockpuppets on /. helped build that hype & it pisses me off

real techies should have seen this a mile away! now everyone thinks we're idiots

Re:surprised!!!!

[Immerman]

Why are you assuming the ones who created Stuxnet *aren't* criminals. Government backing does not an honest man make.

Re:surprised!!!!

[gstoddart]

Keep in mind that private currencies undermine government monopolies.

As I said, small potatoes. The magnitude of bitcoin isn't enough to really concern most governments, and certainly not the ones with the resources to do what you suggest.

Could it be a case of criminals in a government being behind this?

Sure. Could it be alien space monkeys trying to destabilize our currencies and use us for slaves to harvest tasty bananas? Sure, I guess

There's about as much evidence for either of those, which means there's zero evidence at all.

I generally tend to fall a little on the tinfoil-hat end of the spectrum -- but in the absence of evidence, I fall back to "Never attribute to malice that which is adequately explained by stupidity."

You're well into just claiming it could be a conspiracy, but I just don't see the need. It could be if you want to be paranoid enough. But there's nothing real to suggest it's true, which makes it just pure imagination for the moment.

Re:How much can be stolen until it's all gone?

[FireFury03]

That is really the point here - if you destroy a currency the currency is worthless, so why steal it unless you don't care about the value?

1. Steal currency
2. Convert into another currency
3. Time passes
4. People realise that a theft has occurred
5. Currency devalues
6. Theives don't care because they already cashed out in (2).