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chachazz
Premium
join:2003-12-14
kudos:9
Reviews:
·TELUS

Chinese Bitcoin Exchange Vanishes ($4.1m)

Chinese Bitcoin Exchange Vanishes Taking £2.5m of Coins With It

quote:
A Chinese Bitcoin exchange has vanished without trace, taking more than $4 million of the virtual currency with it and leaving profit-hungry investors out of pocket.

GBL, the Chinese Bitcoin exchange was launched in May 2013 and putatively based in Hong Kong, despite its servers being registered in Beijing.

However GBL's Hong Kong offices do not exist. GBL mysteriously disappeared in early November taking an estimated $4.1m (£2.6m) of Bitcoins with it.


Full story - International Business Times
--
Gladiator Security Forum


EUS
Kill cancer
Premium
join:2002-09-10
canada

1 recommendation

Why can't people get it through their head to treat Bitcoin as they would cash in their pockets?
--
~ Project Hope ~



Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6
Reviews:
·Clearwire Wireless
·Time Warner Cable

1 recommendation

said by EUS:

Why can't people get it through their head to treat Bitcoin as they would cash in their pockets?

hmm, because it's not cash?


EUS
Kill cancer
Premium
join:2002-09-10
canada

You're right, and I didn't define it as cash.



neochu

join:2008-12-12
Windsor, ON
reply to chachazz

Sounds like to me the Chinese Authorities took it down. Expect other countries to follow suit.

As I said before Bitcoin is going to create alot of animosity among the big bankers who make huge money off of exchanging multiple currencies and taking their share of the pie in dealing with eCommerce.

It is an excellent idea but without regulation (mutually agreed upon and enforced) to even the rules for everyone it is still going to be high risk and variable.

(and the problem is no one wants a one-world currency -- which is what this is slowly becoming)


OZO
Premium
join:2003-01-17
kudos:2

I guess the problem is not the one-world-currency per say. I don't mind it at all. The problem, as I see it, is with controlled currency. Those who control the currency have control over every one else... And that is scary.
--
Keep it simple, it'll become complex by itself...



Name Game
Premium
join:2002-07-07
Grand Rapids, MI
kudos:7

1 recommendation

reply to chachazz

Look out: China’s housing bubble is now available in bitcoin.

»qz.com/147606/look-out-chinas-ho···bitcoin/



Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6
Reviews:
·Clearwire Wireless
·Time Warner Cable

1 recommendation

"Will Shanghai real estate sales whip up China’s bitcoin trading frenzy even more? Hard to say—it’s not clear whether the developer’s announcement is a marketing gimmick or a real expansion of bitcoin’s practical value. Even the company’s president isn’t sure.

Gimmick for sure unless the buyer is an all cash purchaser.
Imagine trying to explain then convince a bank to pay the seller in bitcoins.



chachazz
Premium
join:2003-12-14
kudos:9
Reviews:
·TELUS

Another one...
An online exchange that trades the digital currency bitcoin in the Czech Republic says it has been attacked by hackers.
»www.washingtonpost.com/world/eur···ory.html
--
Gladiator Security Forum



Blackbird
Built for Speed
Premium
join:2005-01-14
Fort Wayne, IN
kudos:3
Reviews:
·Frontier Communi..
reply to chachazz

Bitcoins are backed by the full faith and credit of... of... uhhh... the... uhhh... "exchange" where they're parked... run by total strangers, somewhere up in the "cloud". And the clouds are where those invisible, electron-based Bitcoins will all fly off into when their hosting exchange evaporates. Example: GBL. Q.E.D.
--
The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money. -- A. de Tocqueville



Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6
Reviews:
·Clearwire Wireless
·Time Warner Cable

1 recommendation

reply to chachazz

I could fill volumes with the inherit fatal flaws of bitcoin but I'll keep this brief.

It's success was that of a curiosity.
Flying under radar if you will.
Once it grew up it went from being a curiosity to being a target.

e.g., what do hackers need?
Resources.
The cloud is an excellent resource for all that it is as well as well as for all that it isn't.
Hackers don't access their PayPal accounts to pay for these services. They use other peoples PayPal accounts. They don't bust out their credit cards to pay either - well actually they do since they temporarily see other peoples credit cards as their own.

That created a problem for both hacker & service provider.
It was just a matter of time before the fraudulent payment caught up with hacker.
The service provider would get hit a charge back getting debited whatever amount they had assumed was income.
The hacker's problem was losing access to a service that may have vast amounts of important data on it without warning because of the service provider immediately terminating access due to the charge back.

An acceptable work around to this was Liberty Reserve where a hacker could legitimately pay a service provider eliminating both the charge back as well as loss of access issues. Of course the source of those funds wasn't legit but it didn't matter.

With the Feds shutdown of Liberty Reserve the pressure to find an alternate anonymous "legit" payment platform helped bump bitcoins appeal.

That it appeals to hackers/ecriminals can't be overlooked when discussing bitcoin issues.



Name Game
Premium
join:2002-07-07
Grand Rapids, MI
kudos:7

1 recommendation

reply to chachazz

Man throws away Bitcoins worth $7.5m in landfill

»timesofindia.indiatimes.com/tech···2011.cms

Mr Howells, who didn’t back up the hard drive, has given up the search but Docksway landfill site, near Newport in Wales, is preparing itself for an army of virtual treasure hunters.



siljaline
I'm lovin' that double wide
Premium
join:2002-10-12
Montreal, QC
kudos:17
Reviews:
·Bell Sympatico
reply to chachazz

Bitcoin is in the IT Press almost daily of late. One that was interesting but OT here was one owner that threw his away.
»arstechnica.com/information-tech···million/

--
Canadians reserve the Right to - Arm Bears



Name Game
Premium
join:2002-07-07
Grand Rapids, MI
kudos:7

I think it's another IT Pro who likes the publicity ..but is full of crap.
»www.mirror.co.uk/news/uk-news/ja···-2862181



dib22

join:2002-01-27
Kansas City, MO
reply to chachazz

Ok can we get another sticky to put next to the

"new java security vulnerability found" and the "new flash player attack vector found"

that is titled Another Bitcoin wallet/exchange/bank gets hacked/stolen/vanished"



Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6
Reviews:
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2 recommendations

reply to Name Game

said by Name Game:

I think it's another IT Pro who likes the publicity ..but is full of crap.
»www.mirror.co.uk/news/uk-news/ja···-2862181

Hmm, he might be the first, last & only person to ever literally mine bitcoins from the earth.


siljaline
I'm lovin' that double wide
Premium
join:2002-10-12
Montreal, QC
kudos:17
reply to Name Game

Howells' coins are in a landfill if you want 'em



chachazz
Premium
join:2003-12-14
kudos:9
Reviews:
·TELUS

PC World - Bitcointalk.org warns passwords in danger after DNS attack

quote:
A popular Bitcoin discussion forum warned on Monday some user passwords may have been intercepted after the site’s DNS (Domain Name System) registrar was breached.

An attacker found a flaw in Bitcointalk.org’s domain name registrar, a company based in Japan called Anonymous Speech, wrote an administrator for the forum who goes by the nickname “Theymos.” Anonymous Speech could not immediately be reached for comment....

Reddit - Bitcointalk.org Man in the Middle Attack - CHANGE YOUR PASSWORDS!


--
Gladiator Security Forum


Name Game
Premium
join:2002-07-07
Grand Rapids, MI
kudos:7

2 recommendations

reply to siljaline

said by siljaline:

Howells' coins are in a landfill if you want 'em

I'll pass..that is more up your alley.


chachazz
Premium
join:2003-12-14
kudos:9
Reviews:
·TELUS

quote:
Dark net market Sheep Marketplace has shut down after $5.3m (£3.3m) in bitcoins was stolen from the site.

The site shut down over the weekend and visitors today see a notice blaming the theft for the closure.
Article - The BBC
--
Gladiator Security Forum


Rogue Wolf
Mourns the Loss of lilhurricane

join:2003-08-12
Troy, NY
reply to EUS

said by EUS:

Why can't people get it through their head to treat Bitcoin as they would cash in their pockets?

I'd trust the cash in my pockets more. The United States government isn't likely to yank up roots and run off at the drop of a hat.
--
I may have been born yesterday, but I've spent all afternoon downtown.


Blackbird
Built for Speed
Premium
join:2005-01-14
Fort Wayne, IN
kudos:3
Reviews:
·Frontier Communi..

2 recommendations

reply to chachazz

A Bitcoin is an electronic promise-to-pay note issued by a total stranger which you can buy with real money, except that you don't even have the paper the note's (not) printed on - just the symbolism contained within a pattern of magnetized molecules on a couple of hard drives - yours and a faceless server somewhere off in the cloud. That, and the one-time electronic "words" at the purchase web site the day you bought, whose physical location or actual owner you really don't know. All you really know is the URL to which you sent payment at some point back in time. What could possibly go wrong...?
--
The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money. -- A. de Tocqueville



ZZZZZZZ
Premium
join:2001-05-27
PARADISE
kudos:1

1 recommendation

reply to chachazz

I bought some for $20 a couple of years ago as a lark and out of curiosity...........sold them this year for $300 each.

Anyone that thinks this is a stable way to invest is nuts.........this is a fad that will rise and fall so fast,your head will spin.
--

Remember our Vets~



EGeezer
zichrona livracha
Premium
join:2002-08-04
Midwest
kudos:8

2 recommendations

reply to chachazz

Bitcoins are the new Beanie Babies.



Blackbird
Built for Speed
Premium
join:2005-01-14
Fort Wayne, IN
kudos:3

At least Beanie Babies could be held in your hand... and some folks found them "cute". Bitcoins fall short in both categories...



sivran
Opera ex-pat
Premium
join:2003-09-15
Irving, TX
kudos:1

If someone could make plushy representations of bitcoins, they'd be a billionaire.
--
Oh, Opera, what have you done?


Velnias

join:2004-07-06

1 recommendation

reply to chachazz

"Many thousands of articles have been written purporting to explain Bitcoin, the online, peer-to-peer currency. Most of those articles give a hand-wavy account of the underlying cryptographic protocol, omitting many details. Even those articles which delve deeper often gloss over crucial points. My aim in this post is to explain the major ideas behind the Bitcoin protocol in a clear, easily comprehensible way. We’ll start from first principles, build up to a broad theoretical understanding of how the protocol works, and then dig down into the nitty-gritty, examining the raw data in a Bitcoin transaction."

»www.michaelnielsen.org/ddi/how-t···y-works/



Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6

I fully respect that.
You put quite a bit of effort into it.
Not dwelling on bitcoins in particular but I believe there is a symbiosis between explanation & caution.

The more explanation needed, the more caution needed.



Blackbird
Built for Speed
Premium
join:2005-01-14
Fort Wayne, IN
kudos:3
Reviews:
·Frontier Communi..
reply to chachazz

There is one major problem with the entire concept of "digital money", which is its intrinsic dependence on "digital". To function fully as "money", a medium of exchange must be trustworthy and its 'value' similarly attributed by both the seller and buyer in an exchange. The seller, to accept the medium of exchange, must rest assured that its "worth" can not be tampered with and that its "worth" will remain stable for as long as he needs to possess it - which may be quite long. Moreover, unless it can be physically handled and stored by its possessor, it limits the scope of the marketplace in which it will be accepted to just those sellers who trust all the digital aspects of what they understand (or misunderstand) the medium to be. And if the medium of exchange is limited in scope, now or in the future, it distorts the effective "worth" of the medium.

Stories of losing your Bitcoin "stash" simply by absent-mindedly ditching the key hard-drive and computer in the trash (which could just as readily have been instead a totally-failing hard drive), along with the following two anecdotes from the OP's referenced article act to illuminate the lack of tangibility, and hence security, of a medium of exchange like Bitcoins that cannot be held in one's hand or stored however the recipient may wish (either on his own or via a selected physical repository of his own choosing).

quote:
... On 26 October, GBL vanished from the internet, taking millions of dollars' worth of Bitcoins with it. Due to the currency's near-complete anonymity, it will be all but impossible for users to get their coins back, or for the police to retrieve the stolen funds.
quote:
... The news comes just days after an Australian Bitcoin owner by the name of Tradefortress reported the theft of around £700,000 worth of coins from his online wallet. The user, who said he wouldn't bother reporting the theft to the police, told Australia's AM radio show he was "over 18 but not much over."
--
The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money. -- A. de Tocqueville


EUS
Kill cancer
Premium
join:2002-09-10
canada
Reviews:
·voip.ms
reply to Rogue Wolf

My comment was not complete, it should have included: In terms of security, treat your BTC wallet as you would cash on hand, ie don't leave your billfold with others.
--
~ Project Hope ~