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Bitcoin Exchange Flexcoin Wiped Out By Theft

Posted by timothy on from the in-the-movie-version-it'll-be-the-feds dept.

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.'"

13 of 704 comments (clear)

  1. surprised!!!! by banbeans · · Score: 5, Interesting

    Not!
    Which one is next?

    1. Re:surprised!!!! by Immerman · · Score: 5, Insightful

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

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    2. Re:surprised!!!! by gstoddart · · Score: 5, Insightful

      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.

      --
      Lost at C:>. Found at C.
  2. How much can be stolen until it's all gone? by Anonymous Coward · · Score: 5, Funny

    "Wow, we just got 896 bitcoins"
    "yup but because we did the value is now $2"

    1. Re:How much can be stolen until it's all gone? by FireFury03 · · Score: 5, Insightful

      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).

      --
      http://blog.nexusuk.org
  3. Unregulated currency by BitZtream · · Score: 5, Insightful

    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.

    --
    Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
    1. Re:Unregulated currency by hodet · · Score: 5, Insightful

      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?

    2. Re:Unregulated currency by Stormy+Dragon · · Score: 5, Informative

      which means its easy for people to just steal your money and lie about it

      Yes, because never in history has anyone been "mugged" or "conned" or otherwise had their government regulated currency stolen by a third party.

    3. Re:Unregulated currency by Anonymous Coward · · Score: 5, Informative

      The problems have been in trusting your stash with companies that have no business being trusted.

      Bitcoin may not have any problems with the protocol - which is debatable - but the problem lies in the requirement for exchanges.

      In order to be able to change Bitcoin into dollars and back to Bitcoins, the exchanges must, out of necessity, maintain a stock of Bitcoins that is server-accessible.

      If it's server-accessible, it's hackable and subject to theft. If you think you can make something hack-proof purely out of software, let me introduce you to Kurl Godel.

      Also, from what I've read it appears that Bitcoin thefts are not reversible. This is especially problematic given that there is a finite supply of Bitcoins; no central authority can come in and save your Bitcoin "bank" if it is robbed, whereas if my local Wells Fargo down the street is robbed, the FDIC insures my deposits to the tune of $250,000 (which also comes in handy in case the bank fails entirely, which is an extremely rare occurrence.) Even if there was the equivalent of an FDIC for Bitcoin "banks", eventually they run out of Bitcoins they can pay back on insurance.

      This, and myriad other problems with Bitcoint that have been enumerated on Slashdot ad nauseum, should really convince any rational-minded person that Bitcoin is entirely worthless.

  4. From the FAQ by blueg3 · · Score: 5, Informative

    Q: Where will my bitcoins go?

    A: Bitcoins deposited with flexcoin will be stored on our secure servers. They will remain in your account, and your account only, unless you authorize a transaction with them.

    Wishful thinking.

    From the Terms of Service:

    We have taken every precaution to defend your bitcoins from hackers and/or intruders. However, Flexcoin Inc is not responsible for insuring any bitcoins stored in the Flexcoin system. You are entering into this agreement with Flexcoin Inc. You agree to not hold Flexcoin Inc, or Flexcoin Inc's stakeholders, or Flexcoin Inc's shareholders liable for any lost bitcoins.

    We'll see.

  5. Fuck by PvtVoid · · Score: 5, Funny

    Somebody stole a bunch of tulip bulbs!

  6. Flexcoin was not an "Exchange" by SpankiMonki · · Score: 5, Informative

    Although Flexcoin labelled themselves as a "bank" what they really were was an EWallet service. Why people still use these web-based services to store their BTC balances is beyond comprehension.

  7. surprised!!!! by globaljustin · · Score: 5, Insightful

    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

    --
    Thank you Dave Raggett