27 Aug '13, 10am

Sure, You Can Steal Bitcoins. But Good Luck Laundering Them - Wired #bitcoin

Sure, You Can Steal Bitcoins. But Good Luck Laundering Them - Wired #bitcoin

In April 2012, the web site Betcoin lost 3,171 Bitcoins when someone hacked into three separate computers to rob the online gambling destination. With just a few mouse clicks, the thief made off with a load of digital currency that’s now worth close to $400,000. But the money wasn’t exactly gone. After the heist, it sat for a year in a Bitcoin wallet, visible to the entire world, yet controlled only by the criminals. Then, this year, on March 15, the thief started to cash it out. He’d take small chunks of Bitcoins, known as “peels,” and move them from one wallet to the next. Eventually, about 375 Bitcoins (that’s $45,000 at today’s exchange rates) went to known Bitcoin exchanges such as Mt. Gox where they could be converted into U.S. dollars. Whoever pulled off the Betcoin heist hasn’t been caught, but once stolen Bitcoins pass into an exchange or they’re used in some othe...

Full article: http://www.wired.com/wiredenterprise/2013/08/bitocoin_ano...

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Sure, you can steal bitcoins. But good luck laundering them

Sure, you can steal bitcoins. But good luck lau...

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