Bitcoin Exchange Hacked, $5M Worth Of Bitcoin Stolen

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
According to this report , Bitstamp has temporarily suspended its bitcoin exchange services because some of its bitcoin storage wallets were compromised over the weekend.

The popular bitcoin trading site, said to be the world's third busiest bitcoin exchange amounting for 6 percent of all bitcoin transactions, said that a "small fraction" of customer bitcoins are maintained in online systems, adding that any compromised bitcoins can be recovered from its "cold" offline storage reserve.
Click to expand...
 
Huh, bitcoins were "worth" $267 each on Monday. That's a pretty huge overall drop from the over $1,000 when it was being all rabidly defended by miners who were knowingly and unknowingly supporting all the criminals that are taking advantage of the perceived value they added. Also, it's pretty obvious that bitcoins aren't a very secure money system if exchanges are hiding away up to 90% of their funds on offline systems in order to prevent loss due to hacking. That's basically hording out of fear and totally doesn't speak well about the future of bitcoins.
 
Heh... Morgan Stanley... Bitstamp...

Everyone is getting it.
 
That's a lot of monopoly money gone...the kids must be in an uproar!

Bitcoin...when you absolutely need to gamble, its a sure thing!
 
Hackers are equal opportunity.... If you have money that is.
 
I'm missing the part about how the stolen coins could be recovered.
 
I better mortgage my house and get in this bitcoins game! Oh wait, a lot of idiots have done that.
 
CreepyUncleGoogle said:
Huh, bitcoins were "worth" $267 each on Monday. That's a pretty huge overall drop from the over $1,000 when it was being all rabidly defended by miners who were knowingly and unknowingly supporting all the criminals that are taking advantage of the perceived value they added. Also, it's pretty obvious that bitcoins aren't a very secure money system if exchanges are hiding away up to 90% of their funds on offline systems in order to prevent loss due to hacking. That's basically hording out of fear and totally doesn't speak well about the future of bitcoins.
Click to expand...


Yea and I've seen stocks do far worse in much less time, so I don't see your point. And only used by criminals, really? Thanks fox news, I've had my dose of stupid fear mongering for today.

And I'm guessing they keep their funds safe from hackers, because their funds aren't insured by the government like banks are (and neither are *gasp* stocks. Those must be going away to right?).... So that sounds smarter than leaving 100% accessible in an attack.
 
CreepyUncleGoogle said:
Huh, bitcoins were "worth" $267 each on Monday. That's a pretty huge overall drop from the over $1,000 when it was being all rabidly defended by miners who were knowingly and unknowingly supporting all the criminals that are taking advantage of the perceived value they added. Also, it's pretty obvious that bitcoins aren't a very secure money system if exchanges are hiding away up to 90% of their funds on offline systems in order to prevent loss due to hacking. That's basically hording out of fear and totally doesn't speak well about the future of bitcoins.
Click to expand...

Oh noes some people invested in a new volitile market... some won, some lost. That is the way it works with new markets. Everyone is betting on a home run many whiff.

Pretty sure every investment bank/house has secure accounts that hold their funds and are used as capital leverage for their daily trading operations. The nature of bitcoin and maturity of the market just doesn't allow their value to be stored in say bonds like with more established currency.

Bitcoin was obviously over-hyped and priced, this could very well be the normalization to a more stable market. Or it could be slowly dying. I don't know. The fact that Microsoft and other large vendors are accepting it is a good thing. Need stuff to spend it on if it were to become a currency, chicken and the egg type of thing...

I think its a great experiment, wonderful for countries where their currency is even more volatile or governments restrictive. I believe Argentina (some south american county) has such rapid inflation right now even the government is placing laws to keep US currency in the country. Lots of people are struggling to find US dollars to the point that you could probably smuggle it in country and MAKE money. Bitcoin could help in these situations...

While in the US, its less useful practically but still sort of a cool grass roots type of thing to support.
 
XViper said:
Really? Wow, I can't believe people are that stupid.
Click to expand...

"It has nowhere to go but up up up up!"
"Even if you drops but $200, you're still profiting!"

Go read the SomethingAwful thread on bitcoins. You'll find tons of bullshit about the bitcoin spergs.
 
Kaitian said:
"It has nowhere to go but up up up up!"
"Even if you drops but $200, you're still profiting!"

Go read the SomethingAwful thread on bitcoins. You'll find tons of bullshit about the bitcoin spergs.
Click to expand...

I made a few dollars with bitcoin when it was good. But when if someone mortgages their house against it, then that's a whole different level.
 
"I didn't read the article but am going to comment on the item stolen rather than the entity that was compromised"

- Every enlightened statist on every bitcoin theft article on [H]
 
Biznatch said:
Yea and I've seen stocks do far worse in much less time, so I don't see your point. And only used by criminals, really? Thanks fox news, I've had my dose of stupid fear mongering for today.

And I'm guessing they keep their funds safe from hackers, because their funds aren't insured by the government like banks are (and neither are *gasp* stocks. Those must be going away to right?).... So that sounds smarter than leaving 100% accessible in an attack.
Click to expand...

I don't own a TV or anything so I don't get where you're going with the news thing. Sometimes I use CNN's website (well they changed the layout a few days ago so it's really a pain to even look at so that might change), but mostly I just get news from MSN when I log out of e-mail. Even then, I kinda don't care enough to do more than read the occasional article.

Anyhow, yes, bitcoins are pretty much the way criminals do business now and the big scam behind it is getting a bunch of people to get excited about it and add the perception of value so that it's actually useful as a form of currency. It makes it seem legitimate and reasonable when companies with people in them who are excited about it start trying to accept it (though most of them exchange it to some other kind of currency during the payment process) so it has the illusion of being legal. A lot of people who are looking for something to fill in the emptiness in their lives that are doing so with bitcoins are just the victims of all sorts of really sick stuff that's going on behind the scenes like human trafficking, drugs, guns, and disturbing gray market stuff like used, unlocked phones. There's no good reason for bitcoins to exist in the first place so the only thing anyone who is super smart would conclude is that it was made for criminals by criminals.
 
XViper said:
Really? Wow, I can't believe people are that stupid.
Click to expand...

One guy did when Bitcoin was worth $10, he bought 40K worth. He sold for $400K, I think he made a pretty nice investment.

Bitcoin is a huge scam but I wouldn't mind taking advantage of tulip mania.
 
CreepyUncleGoogle said:
I don't own a TV or anything so I don't get where you're going with the news thing. Sometimes I use CNN's website (well they changed the layout a few days ago so it's really a pain to even look at so that might change), but mostly I just get news from MSN when I log out of e-mail. Even then, I kinda don't care enough to do more than read the occasional article.

Anyhow, yes, bitcoins are pretty much the way criminals do business now and the big scam behind it is getting a bunch of people to get excited about it and add the perception of value so that it's actually useful as a form of currency. It makes it seem legitimate and reasonable when companies with people in them who are excited about it start trying to accept it (though most of them exchange it to some other kind of currency during the payment process) so it has the illusion of being legal. A lot of people who are looking for something to fill in the emptiness in their lives that are doing so with bitcoins are just the victims of all sorts of really sick stuff that's going on behind the scenes like human trafficking, drugs, guns, and disturbing gray market stuff like used, unlocked phones. There's no good reason for bitcoins to exist in the first place so the only thing anyone who is super smart would conclude is that it was made for criminals by criminals.
Click to expand...

I agree that Bitcoin does give the illusion that it's a stable currency. Partly it is due to some larger retailers accepting Bitcoin as a form of payment. Now with regards to it being used for high illegal stuff, I really doubt this. It's too volatile to hold any amount of it. Highly illegal stuff would be conducted in cold hard cash as it always have been.
 
XViper said:
I agree that Bitcoin does give the illusion that it's a stable currency. Partly it is due to some larger retailers accepting Bitcoin as a form of payment. Now with regards to it being used for high illegal stuff, I really doubt this. It's too volatile to hold any amount of it. Highly illegal stuff would be conducted in cold hard cash as it always have been.
Click to expand...

Are you saying criminals would shy away from online banks and wallets? Also as you said, many criminals aren't going to bank their money into an unstable market that has become such a center of attention.
 
Ultima99 said:
Hackers are equal opportunity.... If you have money that is.
Click to expand...

Only if you can get someone to convert those magic beans, rocks or fairy dust into actual US currency or your national currency of choice. Until then they are just numbers stored on a calculator.
 
Fucking bitcoin has been burried in scandal from day one

Hacking, people who sell mining equipment that doesn't get to customers until 6+ months later because the guys bought the machines then used them to mine for themselves, and when the machines were no longer profitable gave them to the customers as vastly outdated mining equipment, endless fraud etc

How bitcoin gained actual value is still beyond me, it is by very definition a dot.com bubble
 
For the Bticoin defense force not only is it NOT a real currency it isn't even a good bet compared to the Stock market. If the stock markets looked like the below graph we'd all be in a world of hurt. Keep the faith bro's! :rolleyes:


opr2CDE.jpg
 
Bitcoin was less than $14 in 2013.

Must be a coincidence your graph doesn't go back that far.
 
If I bought a stock at $14 and was forced to liquidate at $275 I'd sure be crying a river.
 
pcjunkie said:
Yeah...you and the 2 other guys....everyone else is screwed. That's what a typical ponzi scheme looks like.
Click to expand...

And people like you won't cash out. They will hold them hoping for a miracle until they finally give in and cash out at $2. See how speculation works the other way also?
 
pcjunkie said:
And people like you won't cash out. They will hold them hoping for a miracle until they finally give in and cash out at $2. See how speculation works the other way also?
Click to expand...

I was cashed out until recently. Please tell me more about how speculation works :rolleyes:
 
I really don't get all the bitcoin hate.... if you think it's a scam, don't buy it. Why shit on anyone else who did?
 
spintroniX said:
I really don't get all the bitcoin hate.... if you think it's a scam, don't buy it. Why shit on anyone else who did?
Click to expand...

To warn others that are ignorant of exactly what Bitcoin's are and the risks involved. These constant forum headlines should give you a clue. We are not in the crypto-currency sub forum. I don't "hate" Bitcoins but I do think they are more of a scheme for the government conspiracy nuts, criminals and generally get rich quick people.
 
spintroniX said:
I really don't get all the bitcoin hate.... if you think it's a scam, don't buy it. Why shit on anyone else who did?
Click to expand...

I don't think anyone here is making fun of anyone else. I know people will get offended if they learn about the facts and see the graphs that make if obvious that they fell in love with something that was sort of silly (at best) and completely criminal. People who get upset about that and rush to defend it are just trying to keep a broken dream alive long after the reality of the situation has sort of struck them and they still wanna do their best to pretend it's something other than what it actually is.
 
You must log in or register to reply here.
Back
Top