Huge Hacker Heist Leaves BitCoin in Trouble / Infopackets.com

Bitcoin security mistake allows for $250,000 hacker heist. #Infosec

Virtual currency provider BitCoin is in big trouble after a security blunder resulted in the theft of $250,000. The heist at the BitFloor "exchange" came after operators did the online equivalent of leaving the keys in the door. The idea behind BitCoin is to create a currency that isn't controlled by a government and therefore isn't subject to any seizure of funds. With no government backing, BitCoin has value only so long as enough people agree to use it. Unlike most currencies, BitCoin exists only online, with no physical currency (like coins or bills). Each BitCoin exists solely as a unique identification code, while every BitCoin user has a personal, secret code for use in transactions. Because both codes are necessary in every transaction, it's not possible to "spend" the same BitCoin twice or to use somebody else's BitCoins without permission. BitCoins can be used fo...

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