Dark Web Marketplace Absconds With $12 Million Bitcoins

[engine]

News of people absconding with Bitcoins is not giving the virtual currency a good name.

Perhaps i've misunderstood, but, sure the currency can be traced if they come to spend it? Perhaps not. If that's the case, it would improve the credibility if it could be traced.

One of the biggest drug marketplaces on the dark web has abruptly shut down.

The Evolution site closed as its administrators went offline reportedly taking with them bitcoins people had deposited with the underground bazaar.

The two administrators are believed to have absconded with about $12m (£8m) in bitcoins. Dark Web Marketplace Absconds With $12 Million Bitcoins [bbc.co.uk]

[graeme_p]

People deposited money with an underground organisation they know nothing about and that is impossible to trace? We are not talking about making transactions through the site, but people keeping money in their escrow system. As one of the comments on the Ars storu [arstechnica.com ] said:

Well, there goes society. You can't even trust drug dealers anymore.

Bitcoins are a cash equivalent for electronic transaction, and they need to be looked after like cash. Would anyone sensible have given Evo their cash to store? They are easier to look after than cash because you can easily use encrypted wallets (the equivalent of having a really good safe at home), and a good hardware + software wallet is pretty safe.

On the other hand, depositing bitcoins is not safe. The bitcoin.org sie is very clear about this and warns about the risks of online wallets.

[physics]

grame_p you hit the nail on the head. People who didn't trust their Bitcoins with the service are not affected.

By the way, 12 million dollars is nothing compared to how much money hackers have stolen from traditional banks in the recent past (one BILLION dollars [nytimes.com]).

A hacking ring has stolen up to $1 billion from banks around the world in what would be one of the biggest banking breaches known, a cybersecurity firm says in a report scheduled to be delivered Monday.

If that sounds like a "victimless" crime ... it's not. Even if the money is FDIC insured, or the customer is reimbursed by the bank, that billion dollars has to come out of someone's pocket in the end. And guess what, it's all of us.

At least with Bitcoin, the only people who lost money are the ones who chose to put it into the hands of the sketchy site in the first place.

p.s.
Bitcoin isn't untraceable and they had better be VERY careful about how they use those coins because ... well because they just made hundreds of drug dealers extremely angry, and that's usually not a good idea.

[J_RaD]

*gasp* underground drug dealers doing shady unethical things.......!

VERY careful about how they use those coins because ... well because they just made hundreds of drug dealers extremely angry, and that's usually not a good idea.

thats pretty much it.... if they thought they would dance into the sunset laying on the beach forever... WRONG. Talk about looking over your shoulder for the rest of your days
these guys better change names and go live in the jungle ASAP

[graeme_p]

I did not expect this thread to make me laugh, but the last two messages both did.

It is a pity, but I think engine is right, and people will perceive this as an intrinsic problem of Bitcoin, rather than a problem of entrusting money in ANY form (cash, bank deposits, ....) to the wrong people.

One thing it does do, is show that Bitcoin is not particularly useful for criminal activity, because a Bitcoin transaction requires that either one party trusts the other, or both trust some intermediary,

[J_RaD]

[arstechnica.com...]

good read about silk road

[graeme_p]

Thanks J_Rad, that was interesting.