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Man has $16,500 worth of Bitcoin stolen from MtGox

Dave Wright had $16,500 of the crypto-currency Bitcoin transferred from his account without his knowledge. On April 23rd 2013, Wright’s Mt. Gox account was hacked by an IP address based in Holland and the money was transferred out. “Every time I log back into my account it is like returning to a murder scene, so sad.”

A Bitcoin account can be set up so it is completely anonymous which is a strong appeal to it’s users but it also makes theft hard to reconcile. Since April, Wright has been contacting the company based in Japan and has been told there was nothing they could do to return his funds and he would have to contact his local police.

Wright cashed in 130 of his Bitcoins at $127 each ($16,510) and was looking forward to using the profits to pay off outstanding medical bills. Mt. Gox has a policy of only allowing $1000 to be cashed out in a 24-hour period. Wright was slowly getting disbursements of his money and was hoping for the entire transaction to be finished within a few weeks. During that period, a hacker broke into his account and interrupted the process of cashing out. The thief converted all the proceeds back into Bitcoins then transferred them all out to himself, thus circumventing the $1000 a day policy.

http://www.examiner.com/article/man-has-16-500-worth-of-bitc...

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Lol I'm sure mt.gox can't replace something that does not exist

Again my physical coins cannot be hacked.

Storing one's bitcoins in an

Storing one's bitcoins in an online wallet hosted by some company is like storing your precious-metals in a bank.

There are varying degrees of security and just like there is no bank that cannot be looted, there is no online wallet that cannot be hacked.

There is also the trust-factor. How much do you trust your bank to hold your gold and silver? Have the same level of trust for your online wallet provider.

Banks don't hold my coins

Mother Nature soil does a fine job.

and on the other side of the same coin,

this is what happened to a British mans 17 pound Bitcon investment.
Lucky fellow.
http://www.dailymail.co.uk/news/article-2479011/Bitcoin-investor-forgot-bought-17-currency-checks-years-later-worth-551-000.html?ico=home^headlines

Bitcoin

All of my bit coins were in a block chain wallet I woke up to a text message that 190 bit coins were transferred out of my account at 5AM. At that time they were worth $21500. I think it was an inside job if you ask me.

Once again

I did not draw a map to my Nickles and no one even knows I have them.(but you)

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

And my Trusty

Metal Detector...

I didn't read the whole article but

this looks more like a hacker stole some other currency from this guy, not Bitcoins and did so via MtGox.

He "cashed" in 130 BC...
He was "slowly getting disbursements"
(Assuming it was ALL cashed at the $127 rate, they did convert it all to dollars(?) and were simply holding it til they could give it all to him, according to their reduced disbursement policy.)
The thief converted all the proceeds back into Bitcoins...

I see this as a problem of the banks' regulations over Bitcoin exchanges allowed one exchange to get hacked. If Wright had simply cashed in all 130 BC at once for immediate currency, this problem would never have been possible. ...except for when he was walking back to his car with the money.

Bitcoin,

sounds like what the bankers (Rothschild & company) want.
Sell the idea of digital money and it will be easier for the transition to the RFID chip.
DIGITAL MONEY!!!!!

NOSHEEPLE

...

You cannot manage a scarce resource with a non-scarce resource. You will always have a trade indifference.

All rights reserved and no rights waived.

Execept

nobody can ever control Bitcoin. It's no different than email and the Internet. All that's digital too. Do you suggest we all drop it and go back to typewriters and snail mail only?

Not at all!

Controlling the digital communication and accessing others, would be a concern if your electricity/power isn't there anymore.
Kind of hard to trade "digital nothing" for food or water.
Stick with silver or gold for trade and barter.

NOSHEEPLE

What are you nuts?

You really think that silver and gold hold their value? Clearly the ancient Romans and Egyptians were taking Bit coin over gold and silver.

:-)

Really...

If we go into a survival situation in which there isn't electricity your silver will be just as useless as my Bitcoin. There will be only one currency: food (and possibly bullets). Will it eventually buy something? Sure. But in the short term chaos phase you are referring to metal really isn't the asset you need.

The fact that Bitcoin lives online is it's biggest strength and weakness. I believe in the information age it is a far greater strength.

If you conduct all your transactions with silver I applaud you. If you conduct (online) transactions with Federal Reserve currency that could have conducted with Bitcoin I would encourage you to rethink your position.

Technically...

Technically, a single individual can manipulate the entire value of BitCoin due to how it is structured. It is extremely unlikely, yes, but possible.

Care to explain, technically?

Care to explain, technically?

Sounds like the man should

Sounds like the man should have seriously better protected his computer and network. It boggles the mind how a hacker/cracker could have timed this so well though... Sounds fishy to me.

Not really

I actually expect more of this kind of thing, unfortunately.

This is huge drawback of Bitcoin. I can admit it as a supporter. Right now Bitcoin has about 2 billion dollars of market cap. ALL of that is digital. Most people are not computer savvy. As we move more of our lives online this makes more people vulnerable. Vulnerable to the NSA, vulnerable to hackers, to identity thieves, credit card fraud, and now Bitcoin too.

I'm not sure the answer for it except people need to learn to protect themselves better. There are solutions being developed though like Trezor for Bitcoin.

Trezor looks cool. "Trezor is

Trezor looks cool.

"Trezor is 100% open source ... You can even build your own, if you don't trust because of our funny accent"
LOL

yawn

bitcoin tip of the day: don't use simple passwords.
Examples: 1234, abcd, john, 6969

don't worry though guy, the bitcoin haters have magical powers and they will easily be able to track your anonymous btc and find exactly where they went and give you the persons full identity. problem solved.

most btc company's use two factor authentication now a days which would have prevented access if a weak password is hacked.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
#standwithrand

Let this

be a lesson to any Bitcoin users. Bitcoin is NOT like the Federal Reserve where you can go complain somewhere like the FDIC. Bitcoin is absolute freedom and responsibility. If you trust any third party with your funds you can't be sure of no loss.

Learn to store the majority of your coins safely yourself (preferably offline which is called "cold storage"). There is a lot of help you can find on that topic.

...

The $1000 US daily limit imposed by the major Bitcoin software operator is a capital control.

All rights reserved and no rights waived.

The daily

limit was put into place by Mt.Gox to prevent such large illigetimate withdrawals from occurring. I thought they also had such a limit on bitcoins too, but apparently not, as that would have lessened the loss in this case I believe.

...

The major banks claim the same cause and effect however the function is a capital control.

All rights reserved and no rights waived.

Major banks do this for

Major banks do this for capital control but more importantly due to their inherent insolvency due to Fractional Reserve Banking. Without such artificial limits, bank runs would be more common place (and should've been) that what they now are.

In case of bitcoin exchanges, they build their business on top of existing USD financial institutions and are affected by the restrictions (daily-limits) and charges and fees of the financial institution. Hence when they provide a service as an intermediary (escrow) to exchange bitcoins with USD, they will have to work within the regulations of the USD institution.

So yes capital control is present, but it is more likely due to the regulations that they need to follow as an USD intermediary rather than due to any deliberate profit-making agenda of the exchanges.

Keylogger.

It's no different than your car or home getting broken into if you keep cash in it, right?

But do I really have to worry

But do I really have to worry about some guy in Holland(or even from outside my neighborhood) breaking into my house or car?

In 2013, yes.

:)

Holland or B l u f dale, UT

Keylogging

Key-logging has been forgotten about because so many do it now.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.