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

surprised!!!!

[banbeans]

Not!
Which one is next?

Hmmmm

[jeff13]

Ya know, I'm reminded of the words of one William K. Black (UMKC School of Law), economist and, and the only combination of the two to exist, a criminologist. He was once asked, what is the best way to rob a bank? His answer was; 'be a banker'.

Really, the entire Bitcoin story has been one that was highly suspicious all along. Have you ever read a Bitcoin story that didn't make your left eyebrow raise like Mr. Spock in a room full of illogic? I watched 'The Wolf of Wall Street' recently and thought, *pffft*, soooo dated. I reckon in 20 years someone in Hollywoodland will catch up with reality enough to make a film in that vein about Bitcoin.

Hell Of It Is

[Greyfox]

It's all that Eve online ISK scam crap all over again. You can run a ponzi scheme in Eve, and the suckers will buy into it every time. At the end of the day you can walk away with enough isk that at the current exchange rate you could end up affording a pretty nice Honda. Or some so-so medical care. Really, Eve just needs a bitcoin interface and they'd be positioned to be the number one bitcoin investment firm in the world. At least until the whole thing collapses. I never cease to be amazed how often suckers fall for it, even when you mention the LAST scam in the channel they're advertising in.

Of course, if bitcoin itself goes bust due to a reputation for this sort of thing, all that hacking and all that farming will be for naught.

Re:Unregulated currency

[i kan reed]

No, it's what we get from the pro-bitcoin crowd. The people who think impossible-to-regulate transactions are a good idea happen to have a 100% overlap with the set of people who have a novice's understanding of economics, and apply that cudgel to all ideas.

No conspriacy theory needed

[sjbe]

Why is anyone assuming this is being done by 'criminals'?

Because that is by far the most likely answer. These are almost certainly the equivalent of digital bank robbers. Where there is poorly secured money to be stolen it will be stolen. Furthermore if you steal something you are by definition a criminal even if you are something else as well.

I know that folks involved in bitcoin like to invoke grand government conspiracies (they seem to be a bit paranoid) but the government doesn't have to steal bitcoins. If the government wants to squash bitcoin it will pass some laws and regulations and make it illegal to deal in bitcoins. Why go though the window when you can smash down the door?

Re: When are the bank runs going to happen?

[mattack2]

Bitcoin isn't failing, rather the exchanges are, just like if the crooks had robbed a physical bank of all your paper money.

But if crooks rob a physical bank, your money is insured to the legal limit.

BTW, I've been listening to the old Planet Money podcast episodes (I started at the beginning and am now in early 2009), and the FDIC insurance isn't provided by the government, it's provided by payments the banks make to be FDIC insured.