Computer compromise leads to theft of bitcoins valued at $500,000 USD

Re:Computer compromise leads to theft of bitcoins valued at ... by imjustatechguy on Tuesday June 14, 2011 @10:23AM (#2653040)

Traceability in the real world banking institutions has its advantages. As a business owner I've once had a mistaken transactions that resulted in erroneous withdrawal of +10,000 from business bank account. A phone call to the bank and a bit of investigation fixed things and I don't think the bank was out any money either, it was just a wrong account number issue.

With bitcoin, things are not at all reversible.

Also I expect bitcoin to be shutdown because it could be a great way to fund terrorist activities. (There are major federal investments in anti-money laundering systems that monitor bank transactions, bitcoin transactions operate outside of this system and thus will be suspect.)

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Re:Computer compromise leads to theft of bitcoins valued at ... by mootothemax on Tuesday June 14, 2011 @10:29AM (#2653069)

With bitcoin, things are not at all reversible.

True of plenty of payment methods, e.g. CHAPS in the UK:

Unlike other forms of payment such as cheques, CHAPS payments are irrevocable

http://www.ukpayments.org.uk/payment_options/chaps/

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Re:Computer compromise leads to theft of bitcoins valued at ... by ubernostrum on Tuesday June 14, 2011 @10:48AM (#2653177)

I think a better word is "traceable". Presumably with CHAPS one can find out who the money went to, and other mechanisms can come into play to get it back.

Bitcoin, though, is supposed to herald the awesome future of totally anonymous, totally untraceable transactions in which once your money's gone, you're fucked.

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Re:Computer compromise leads to theft of bitcoins valued at ... by chopsueyar on Tuesday June 14, 2011 @10:49AM (#2653190)

There are major federal investments in anti-money laundering systems that monitor bank transactions

That worked really well for Wachovia...

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-d...

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Re:Computer compromise leads to theft of bitcoins valued at ... by jasongullickson on Tuesday June 14, 2011 @11:20AM (#2653352)

Also I expect bitcoin to be shutdown because it could be a great way to fund terrorist activities.

So is cash :)

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Re:Computer compromise leads to theft of bitcoins valued at ... by mbreese on Tuesday June 14, 2011 @02:34PM (#2654139)

It's pretty hard to move large quantities of cash around... it's pretty easy to move a flash drive with a bitcoin wallet around.

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Re:Computer compromise leads to theft of bitcoins valued at ... by imjustatechguy on Tuesday June 14, 2011 @02:52PM (#2654222)

That is why people who try to bring into the US large amounts of cash through border control have it confiscated if they don't declare it.

http://www.ehow.com/about_5445167_laws-bringing-cash-america...

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Re:Computer compromise leads to theft of bitcoins valued at ... by drivingmenuts on Tuesday June 14, 2011 @10:29AM (#2653068)

Even if it's not, that's the easy claim to make these days that will get them shut down.

Kind of like "it's for the children". That phrase alone can be used to justify so many actions.

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