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Massive Bitcoin Theft

Bitcoin exchange Mt.Gox goes dark; massive bitcoin theft reported

Bitcoin exchange Mt. Gox is offline Tuesday amid reports it suffered a debilitating theft, a new setback for efforts to gain legitimacy for the virtual currency. More than 740,000 bitcoins may be missing from the exchange, which froze withdrawals earlier this month.

By Stephen Wright and Yuri Nagano, Associated Press / February 25, 2014


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Free trade goods or services VS any kind of "fiat" currency

@MarkDice - Who created Bitcoin?

@Paduraru - What is Your Personal Currency?

Positive support for Ron Paul ideas! Support from the Restoration and Liberty Movement on http://cristianpaduraru.com

unlikely but...

There's some completely unfounded speculation that Karpeles is so incompetent that he just lost the 750k bitcoins and could possibly recover them. Based on his recent IRC interview.

Check out http://ronpaulforums.com for activism and news.

bitcoin community responds...

Garan's picture

Looks like Mt.Gox screwed up

Reading this article, you can see that if there was something stolen, then it had to be in possession by Mt.Gox in the first place.

That being the case, Mt.Gox must have been compromised, not the bitcoin system itself.

Best guess is that Mt.Gox had some security holes in their system.

Who knows, could have been an employee.

That could happen to any business with possession or control of your assets.

If you start to see individuals with good personal security habits loose bitcoins in their own possession, then one can begin to suspect a problem with bitcoin itself.

That doesn't appear to be the case from this article.

nsa steal them?


Gotta be a phrat boy at the center of this

Was just reflecting on my long years in technology and how does crap like this happen?

Phrat boys. Phi Beta Phuckups. They are simply too sheerly arrogant to listen to geeks. They are better than everybody else, they take the cheap way out on all infrastructure or buy expensive unusable crap. The only thing they should be used for is marketing because a high % of people will believe anything this french cuff crowd says.

Next time you see a prospectus and the core team is MBA frat boys just round file it.

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

So, is Mt. Gox a storage facility for Bitcoin?

I guess I don't quite get what it is. Don't individuals keep bitcoin in a "wallet"? I don't hear much talk about Cody Wilson's Dark wallet. Isn't Dark Wallet supposed to be a secure way to store your bitcoin?

I'd rather have a bottle in front o' me than a frontal lobotomy

mt. gox is/was an exchange

btc wallets are a secure way to store your bitcoins. Dark Wallet is a way to anonymize btc transactions using a trust-less mixer/laundry.

Bitcoin Self-Defense, Part I: Wallet Protection

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms

Paper wallet or go home!

i prefer encrypted digital medium based cold storage

like an old/cheap offline laptop computer and/or usb/disk based storage or even double/triple encrypted cloud storage.
i hear armory or someone is coming out with encrypted paper wallets but i have not had a chance to read up on the latest.
when they get that figured out i may try the paper wallet thing. even then it's more of a long term storage option.
until paper wallets are encrypted they are still vulnerable to theft and/or seizure just like gold and silver.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms

Andreas Antonopolous, Chief

Andreas Antonopolous, Chief Security Officer for Blockchain says a paper wallet is the only surefire secure way to store bitcoin.


from most thieves yes

from the government no

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms

I'd not worry about that.

I'd not worry about that. Bitcoin is a hassle for them to liquidate.

from the MtGox website

Dear MtGox Customers,

In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.

Best regards,
MtGox Team

LOL! Like a train wreck you could see happening for years

I hope now all of the bitcoin evangelists will finally stop promoting this crap as the greatest currency ever.

Too bad for all the poor people who were conned into believing bitcoin was safe.

Baloney. Exchanges are not

Baloney. Exchanges are not Bitcoin. You have no idea what you are berating.

So if someone steals your

So if someone steals your gold or silver, then those currencies are no longer viable, safe or secure?

If you apply the standards that you apply to bitcoin, I'm sure just about every currency option is succeptible to theft and fraud.

But in your world, if someone steals your gold then gold becomes a "scam". Got it, genius.

I cant even wipe my ass with

I cant even wipe my ass with a bitcoin, sorry if your one of the suckers who fell for that crap. I hope you dont claim to be a supporter of austrian economics

You could download it onto a

You could download it onto a thumb drive and shove it up your ass though.

I'm a supporter of Austrian Economics, and I love Bitcoins. Now that the price has dipped a bit, ill buy some more. So far, its been a great investment.

how do bit coins fit the

how do bit coins fit the theory of sound money? And now i have to spend more money to buy a thumbdrive? Federal reserve notes were once a great investment too. If you made money off bitcoins good for you i wish i did. but the priciples the same. they are nothing

How do you secure your gold?

How do you secure your gold? Do you keep it laying around your house out in the open?

Nice try, but no cigar. Not even apples and oranges for you.

I have never had anyone steal my gold or silver, and you know why? Because it is in physical form, where I can hide it, roll around on it, hug it, squeeze it, and most certainly know whether I still have it or not. That's a far fetch from digital lalaland currencies where exchanges and 'wallets' can simply disappear overnight without a trace. "Genius"

Not true at all

Bitcoins are far safer than gold or silver. I can put my bitcoins in an encrypted "safe" that no one can break into. If I give my bitcoins or gold bars to a third party exchange or bank, anyone can steal them.

Though to be clear, a hybrid-wallet like Blockchain.info is immune from being stolen in this way. Your security is up to you.

Check out http://ronpaulforums.com for activism and news.

Do you travel carrying all of

Do you travel carrying all of your gold and silver? Can you send your gold and silver to someone in another country without all kinds of logistical and security issues?

not really

i have never heard of a btc wallet "disappearing overnight without a trace."
my gold and silver can easily be stolen or seized by the gov especially if it is in my possession and i'm able to "roll around on it, hug it, squeeze it"

good luck trying to steal or seize my encrypted btc!

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms

The emperor has no clothes


Leges sine moribus vanae

what if an electrical storm

what if an electrical storm destroys all the computers?

they'll make more

if that happens then all hell will probably break loose. lots of dead people for sure. in that case I'll be glad i have a few months worth of food, water filtration, guns, ammo, medicine etc.
at some point i'm sure my silver dimes will come in handy too along with the alcohol and stuff i keep for barter.
once the grid is back up people will simply re-upload the btc blockchain from their cd's/usb's sticks and off we go.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms


My point is that no form of currency is impervious to theft, fraud or negligence. If a big gold mine goes bankrupt, does this illustrate what a failed investment gold is? No, not really. Neither does the possible failure of Mt.Gox imply a failure in Bitcoin.

I suppose I don't like the JOY with which some of you smug anti-bit-coiners dig for these stories. People lose their hat and you're all happy n shit. Grow up. Does your ego really need a boost that badly?

Should I go and dig for stories on the fall of Gold and the depression in that market? Then go post those stories gleefully? Yay, somebody lost their investment - yipeee!!!!

An intelligent person doesn't

An intelligent person doesn't put all their eggs in one basket. I have gold, silver & Bitcoin. Not to mention other trade goods in case of zombies apocalypse/electrical storm.

Nothing is without risk. Nothing.

However in case the world "doesn't" implode, I have found Bitcoins to be amazingly handy and a very rewarding investment. They are vastly easier to spend than gold and silver. Because you can download them to smart drives and hide them, they are easier to hide than gold or silver. Its also a good way to kick the central banks in the nuts, and I honestly have no idea how that is not valuable to anyone in this movement. While naysayers are crying about how Bitcoins are just a lala-land scam, I've found they are a wonderful tool. A way to protect the buying power of my money (even increase it for the moment until it stabilizes) while protecting my wealth from the central banking empire.

The fact is, the sooner you lot get with the future of currency, the sooner we could put central banking out of business. Whether or not it "is" the future is simply a question of whether people decide to use it or not. I thought competing currencies was popular among the Austrian crowd. We've been looking for a way to strike back at the Fed forever. Now that it finally arrives, quit acting like neophobes, spend a few bucks you can afford to loose to get a % of a Bitcoin and use it to buy something on Overstock.com or wherever next time you need to buy something. You can literally buy just enough Bitcoin to use that day, but even if you loose a few bucks in case of zombie apocalypse, you've donated money to lost causes before, so what's new? Its putting up your sacred treasure to deliver a blow to the machine. That's what we do.

We aren't going to take down the Federal Reserve with legislation or violence. I see no reason not to use Bitcoin as a way to stand in defiance of their monopoly on our money. Protect yourself by getting gold and silver, sure, but for crying out loud, get some Bitcoin too.