4 votes

Bitcoin: Another One Bites the Dust

The bitcoin bank Flexcoin posted a note on its site stating: "On March 2, 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. ... As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately."

http://www.cnbc.com/id/101463888

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If anyone knows, are the

If anyone knows, are the bitcoins which were "hacked and robbed from the wallets" spendable by the robber? Do they still exist and have value and can be spent?

Yes, absolutely.

Just like having cash stolen.

No mention on the nature of the exploit

keeping the board busy...

Every day is a great day to deploy new bitcoin software!

http://www.dailypaul.com/313659/pre-release-to-dp-free-bitco...

Heh heh...it's based on Coinbase. Hope they hold up.

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

btc vs fed - discuss it here:

lol, never heard of them, next

decentralized p2p exchanges built around the bitcoin blockchain protocol will solve this problem (human error) for bitcoin and all other currency and commodity exchanges too.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
#standwithrand

see with bitcoin

Bad banks dealing in USD make poor choices, gov bails them out w takpayer dollars, libertarians complain.

Bad banks dealing in bitcoin make poor choices, no taxpayer dollars are spent to save the bank, bank fails, libertarians complain.

Any theft of property is a tragedy, but shouldn't we be celebrating an actual free market force allowed to work here?

- Grow Mushrooms at Home
http://subfarms.com

Libertarians are complaining?

Where? Who? When?

These companies failing is proof that a free market works. Those who foolishly keep their money in online wallets are risking their assets. If you have Bitcoin, keep it in a "cold wallet" offline.

I can only assume the customers knew the risks and still decided to trust this company. If this company lied about their security or misrepresented themselves, there will be lawsuits.

The thing is, that people are

The thing is, that people are so used to regulated markets (regulated to stagnation that is) that they forgot how free markets actually look like. This volatility, wild west situation and chaos is normal behaviour for a free market, especially for a new industry that has never existed before. The volatility is a sign of a market that's ALIVE. The stability people value so much is a market that's DEAD.

Now, it's certainly possible that this thing can still go south. Part of the process of a free market is trying stuff and spectacularly failing. But if people here are really advocates for free markets, people will have to allow for bitcoin's right to exist, even if they don't agree with it. Something valuable can be learned from failure. Failure is an important aspect of capitalism afterall.

Really doesn't change anything

I'll gladly defend Bitcoin. Bitcoin has as much blame for something like this as the dollar had for banks that got robbed in the wild west. Anyone that has bitcoins should not leave their money with questionable companies. I've never even heard of this place that was robbed. This is like giving your gold to a guy on the street corner holding a sign that says "Gold Vault" and then being surprised when your gold turns up missing.

I'd much rather have an unregulated market like Bitcoin than one that is controlled at every step of the way by bureaucrats.

The idea's time has come.

Seems normal to me.

Seems normal to me.

Cue the bitcoin defenders...

Cue the bitcoin defenders...

OMG! Someone took some money

OMG! Someone took some money that didn't belong to them out of a bank! Quick, disband the currency that was stolen and run back to your precious federal reserve notes.

Chances are, its the central bankers doing this to scare people away from the silver bullet aimed at their black hearts. Quit cheering for team evil and help support those of us trying to take them down by lending your time, treasure and sacred honor to backing up one of the few innovations that has a real chance at breaking the central banking monopoly. Instead of donating your money to politicians who will never accomplish anything, try investing in the free market of competing currencies to break the stranglehold.

Ah, right on cue! Seriously

Ah, right on cue!

Seriously though, I wish people into bitcoin the best of luck, but I don't trust it. To me it is a speculative bubble and a pump and dump. I thought the big selling point was that it is secured by some impressive encryption. Obviously that encryption is not adequate or people wouldn't have lost their money.

Don't confuse pointing out the deficient aspects of bitcoin with an endorsement of federal reserve notes. When I criticize a republican that does not make me a democrat, and criticizing bitcoin doesn't make me pro federal reserve. A false dichotomy is all that is.

Big Mistake

Lose a million

Trusting Bits

Instead of Bullion

Burma Shave

Leges sine moribus vanae

Not the encryption's fault

The currency is sound, storing it online is unsound. Hackers can access most anything online. Cold storage is the only way to store digital coins. Offline machines that have been purchased and wiped and re-installed, all offline. That's the ticket. These exchanges are a disaster waiting to happen. Nothing online can be totally secured. That includes voting machines, BTW.