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Florida Sting Nabs Alleged Bitcoin Money Launderers

Florida undercover agents posed as fraudsters seeking to convert cash -- supposedly from stolen credit cards -- into the anonymous, cryptographic currency.

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AmmarNaeem
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AmmarNaeem,
User Rank: Strategist
2/14/2014 | 7:52:26 AM
Re: just my .0002 btc
The hackers targeted Silk Road 2 and swiped their entire Bitcoin wallet clean. Using transaction malleability exploit, the hackers maneuvered the assault causing a damage of worth $2.7 million. Hackers first purchased orders from one another and then claimed for a refund. Using transaction malleability exploit, they bypassed transaction ID verification which enabled them to claim refunds in a loop. Read for more update here 
WalrusBaller
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WalrusBaller,
User Rank: Apprentice
2/12/2014 | 9:57:40 PM
just my .0002 btc
I feel bitcoins' value mostly comes from the ability to send instant micro-payments to anyone in the world. With out any evil bankers getting their greedy, crooked, filthy hands in the middle of a personal transaction. With out bank fees or tiny ones like 0.0001%.  Also, the ability to generate as many payment wallets as you want, creates endless possibilities for innovation and freedom.

 
SmailB826
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SmailB826,
User Rank: Apprentice
2/12/2014 | 9:35:19 AM
Whatever...
This was a sting operation and the Bitcoin part was incidental - these creeps could have wanted to get anything they could spend for their stolen loot.  The government CHOSE to offer Bitcoins - to claim that this is really a case against Bitcoin is childish and stupid.
Ariella
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Ariella,
User Rank: Apprentice
2/11/2014 | 3:40:18 PM
Re: Impact
@Lorna you hit on exactly the problem it has in becoming a mainstream currency. I contacted some of the people who had made Bitcoin news for saying they offered to pay employees in the digital currency for an article.  Pyry Lehdonvirta, CEO of SC5, a Finnish software company admitted that he, like most of SC5's employees, "stopped taking salary as bitcoins around March" because of the currency's volatility. He says the intent behind the offer was "to help people spend bitcoins and get into the ecosystem," not to do have them feel like they're "plac[ing] bets in a casino." 
Lorna Garey
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Lorna Garey,
User Rank: Ninja
2/11/2014 | 3:00:13 PM
Re: Impact
Right, but what about the fluctuations? If I sell $500 worth of services and am paid in Bitcoin this week, next week that payment could be worth only $250. Of course, it could also be worth $1,000, but I've never been big on gambling!
Ariella
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Ariella,
User Rank: Apprentice
2/11/2014 | 2:57:16 PM
Re: Impact
@Lorna yes there was a core group of libertarians who were really taken by the idea of a government-free currency. But not everyone involved is extreme. Some really just see it as a practical solution for sending money over IP without the friction of bank fees and processing delays, particularly when two different types of currency are invovled. I can tell you that when I was paid by a UK-based company, it was a bit of a pain working out the bank transfer, and the amounts were always slightly off due to the convesion rate and the bank fee that was assessed on my end.
Lorna Garey
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Lorna Garey,
User Rank: Ninja
2/11/2014 | 2:45:07 PM
Re: Impact
It's an interesting social phenomenon, that a traditionally distrustful group has that faith. Or, maybe it's not so surprising, in that when you distrust any sort of central authority you'd be attracted to a completely decentralized system.
Ariella
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Ariella,
User Rank: Apprentice
2/11/2014 | 2:40:52 PM
Re: Impact
@Loran ah, if the person/people behind the name kept several thousand bitcoins for themselves, they could have made quite a killing when it came close to $1000. What surprises me is that so many in the bitcoin community have absolute trust in this entity when they cast doubt on other crypto-currencies, like Ripple, simply because there are coroporations behind them. At least those companies are upfront about who they are and their plans to retain some of the currency.
Lorna Garey
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50%
Lorna Garey,
User Rank: Ninja
2/11/2014 | 2:37:23 PM
Re: Impact
So in other words, it's a reverse pyramid scheme?
Ariella
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50%
Ariella,
User Rank: Apprentice
2/11/2014 | 2:33:30 PM
Re: Impact
@Lorna

Satoshi Nakamoto (though that is not the real name) is the creator of Bitcoin.  His Bitcoin: A Peer-to-Peer Electronic Cash System laid the groundwork for the system.  What is particularly telling is the reference to trust at the end: "We have proposed a system for electronic transactions without relying on trust."  Bitcoin, does, nevertheless, seem to indicate a form of trust in numbers, or, more precisely strength in numbers, for that is the translation of  "Vires in Numeris," the motto that appears on Casascius. Coins. 
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