Bitcoin Bank Flexcoin Shuts Down After $620,000 Heist

Security is always about the weakest link. It's really as simple as that. Hackers know this, and yet people are somehow consistently surprised by these kind of things...
 
pcjunkie said:
So their treating it more like a stock than currency...not going to win doing it that way.
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If the system had actually run on bitcoin, it would have collapsed long before now. As it is, you're using the USD and other real currencies to prop up the system as bitcoins are being hoarded rather than actually spent.
 
aardvark sandwich said:
They are pretty secure.

This is not a bitcoin hack, its an online wallet hack.

Details.
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Which is a different way of saying that bitcoins aren't secure. In the world of computer-y security, if there's one weak part of the system, the system isn't secure. Basically, if they do what you don't want them to do or have done to them, then there isn't security and its broken.

Not that it matters since it's just used for trading only things that are 100% illegal like guns, drugs, porn, and for trafficking humans. No sympathy from me over all that since there's an empire of crime behind it because the dumb-dumb head who made it didn't build in international oversight in addition to leaving it full of security exploits. But then again, maybe that was the whole reason for it to happen. Make it full of holes so a bunch of miners do all this work and then get "robbed" after there's a value assigned to them so bitcoins can be used in those black markets.
 
CreepyUncleGoogle said:
Which is a different way of saying that bitcoins aren't secure. In the world of computer-y security, if there's one weak part of the system, the system isn't secure. Basically, if they do what you don't want them to do or have done to them, then there isn't security and its broken.

Not that it matters since it's just used for trading only things that are 100% illegal like guns, drugs, porn, and for trafficking humans. No sympathy from me over all that since there's an empire of crime behind it because the dumb-dumb head who made it didn't build in international oversight in addition to leaving it full of security exploits. But then again, maybe that was the whole reason for it to happen. Make it full of holes so a bunch of miners do all this work and then get "robbed" after there's a value assigned to them so bitcoins can be used in those black markets.
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By that logic, paper money is no better, since your back is turned when you withdraw cash from an ATM, and are vulnerable to robbery.

Overstock.com just sold $1million in merchandise via bitcoin. I was unaware they were in the human trafficking business.
 
Bitcoins are exactly like cash. Except they exist electronically instead of as physical bills. And the scary part is, it's so much easier to steal. Why rob a bank and risk getting caught when you can steal digital currency completely fucking anonymously? There's literally no way to be caught doing it.
 
aardvark sandwich said:
By that logic, paper money is no better, since your back is turned when you withdraw cash from an ATM, and are vulnerable to robbery.

Overstock.com just sold $1million in merchandise via bitcoin. I was unaware they were in the human trafficking business.
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Um, overstock has you convert to another kind of money before making a purchase so all their merchandise is purchased via another type of money and not via bitcoins. Besides that, they get a lot more in word of mouth advertising back from having a conversion thing on their site that they don't hafta pay for. I think there'll be lots of legitimate companies that start doing that kinda thing over time, but the problem is that its not at all secure and that it was built so that there's no way to make it secure and to manage or trace where bitcoins go because no one has the oversight it needs to keep people from doing naughty things.

You (yes YOU in specific) can't steal cash moolahs without standing right there with whatever money you're taking and risk being seen, caught, recorded, or arrested. A bitcoin theft is done remotely from unsuspecting miners that criminals are using to make bitcoins have the perception of value and to put in the effort that's necessary to generate them. It's really scammy and I'm always amazed people wanna willingly make themselves into victims that sanction and support something so evil and nefarious.

Horse blinders should totally be issued to people who have a bitcoin wallet.
 
CreepyUncleGoogle said:
Um, overstock has you convert to another kind of money before making a purchase so all their merchandise is purchased via another type of money and not via bitcoins.
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The point you are deliberately ignoring is that these were the bitcoins your supposed pedophiles had. They used the bitcoins they had for overstock merchandise. They no longer hold those bitcoins.

I don't know how to dumb this down any further.
 
I see the same coin evangelists in every shutdown/stolen thread like this...and there seems to be a lot of threads like this. Shouldn't that tell you something?
 
pcjunkie said:
I see the same coin evangelists in every shutdown/stolen thread like this...and there seems to be a lot of threads like this. Shouldn't that tell you something?
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I keep posting because people keep conflating bitcoin with other things.
The same people keep posting the same incorrect statements.
Then they request to be put on ignore...shouldn't that tell you something?
 
Contrary to behaviour on these forums ... the best way to win an argument is not to shout the loudest. Those who do are rarely correct ... except in their own minds.
 
aardvark sandwich said:
I keep posting because people keep conflating bitcoin with other things.
The same people keep posting the same incorrect statements.
Then they request to be put on ignore...shouldn't that tell you something?
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Those same people haven't posted any incorrect statements as far as I can see and certainly didn't get any detailed logical rebuttal to their questions/concerns. Most of them just got called ignorant, stupid, clueless. etc...if your going to defend it so religiously try and sound intelligent instead of like a fanatic with his fingers in his ears.
 
i haven't seen many questions, mostly ignorant statements presented as facts.

like subjective validity of electricity, for example.
 
aardvark sandwich said:
The point you are deliberately ignoring is that these were the bitcoins your supposed pedophiles had. They used the bitcoins they had for overstock merchandise. They no longer hold those bitcoins.

I don't know how to dumb this down any further.
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You're like 8 million percent welcome to prove that bitcoins aren't being used for the things I mentioned. Don't forget to cite your credible sources.
 
TechLarry said:
And the scam continues...
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Just because you don't understand something or missed the wagon doesn't mean its a scam. I missed the bitcoin craze and could've made a lot of money, I started mining alt coins a few months ago, I think they are dumb as hell, don't understand them or bitcoin, but I mine and sell, and money (USD) appears in my bank account. I bought stuff from tiger direct with bit coin. If you think bitcoin is a scam, you are an absolute moron.
 
aardvark sandwich said:
i haven't seen many questions, mostly ignorant statements presented as facts.

like subjective validity of electricity, for example.
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There you go throwing those words around again. Nobody takes you people seriously either when all your posts are the same short worthless quips.
 
pcjunkie said:
There you go throwing those words around again. Nobody takes you people seriously either when all your posts are the same short worthless quips.
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What words am i throwing around? You presented an arbitrary opinion and passed it off as a market condition.
 
username00 said:
Just because you don't understand something or missed the wagon doesn't mean its a scam. I missed the bitcoin craze and could've made a lot of money, I started mining alt coins a few months ago, I think they are dumb as hell, don't understand them or bitcoin, but I mine and sell, and money (USD) appears in my bank account. I bought stuff from tiger direct with bit coin. If you think bitcoin is a scam, you are an absolute moron.
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Below is a good link to understating exactly what crypt-currency's are and how silly it all is. Kind of entertaining as well. I highly suggest anybody interested give it a read. Might open up some coiners eyes as well.

http://arstechnica.com/business/2014/03/behold-arscoin-our-own-custom-cryptocurrency/

PS: Note that I've just linked to more insight into the whole process than any of the evangelists spouting off in this forum. What does that tell you?
 
kcmastrpc said:
They are, the people who handle them however are not.
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Which means they're not really secure at all. If something can be exploited someplace, then it doesn't matter how good one part of it is at being secure. The whole thing has to be secure or the whole thing isn't secure. Now, it's not secure.
 
CreepyUncleGoogle said:
Which means they're not really secure at all. If something can be exploited someplace, then it doesn't matter how good one part of it is at being secure. The whole thing has to be secure or the whole thing isn't secure. Now, it's not secure.
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You can say that about any currency, really
 
you can take a bitcoin off an exchange completely with a paper wallet.

it no longer can be accessed by the exchange, even if the exchange is hacked or run by corrupt pirates.

this doesn't remove all risk - you still had the bitcoin on an exchange for a finite amount of time - but it removes quite a bit of risk. just don't lose it.

it doesn't have to replace dollars, its just another tool in the toolbox. choose your poison.
 
Pringle said:
You can say that about any currency, really
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Yup, that's true. Currency isn't secure and bitcoins aren't secure. Neither is trading elephants or taking furniture from dumpsters in Billings Montana to put in a used furniture store to sell. Comparing it to another kind of exchange means which is also not secure doesn't invalidate the fact that bitcoins aren't secure.
 
aardvark sandwich said:
you can take a bitcoin off an exchange completely with a paper wallet.

it no longer can be accessed by the exchange, even if the exchange is hacked or run by corrupt pirates.

this doesn't remove all risk - you still had the bitcoin on an exchange for a finite amount of time - but it removes quite a bit of risk. just don't lose it.

it doesn't have to replace dollars, its just another tool in the toolbox. choose your poison.
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I'm still totally eagerly awaiting your proof that bitcoins aren't being used for naughty stuff, by the way.
 
of course they are.

my beef is with the assertion that they are ONLY being used for illicit activities.

The spokesperson for FINCEN correctly pointed out that illegal activities are still most easily accomplished with cash.
 
I'm not even sure what people are arguing about at this point. This is all like saying "the sky is full of air" or "water is wet".
 
OP20 said:
It used to be called a conspiracy theory to think the government was collecting all your phone and internet data :p
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I knows guys i used to think they were paranoid, Turns out they were all right. In fact even they underestimated what is really goin on
 
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