Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Second BitCoin exchange (FlexCoin) wiped out by theft
FlexCoin ^ | Mar 4, 2014 | FlexCoin

Posted on 03/04/2014 8:42:51 AM PST by Izzy Dunne

On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 BTC, dividing them into these two addresses:

1NDkevapt4SWYFEmquCDBSf7DLMTNVggdu

1QFcC5JitGwpFKqRDd9QNH3eGN56dCNgy6

As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately. Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity. Once identified, cold storage coins will be transferred out free of charge. Cold storage coins were held offline and not within reach of the attacker. All other users will be directed to Flexcoin's "Terms of service" located at "Flexcoin.com/118.html" a document which was agreed on, upon signing up with Flexcoin.

Flexcoin will attempt to work with law enforcement to trace the source of the hack.

Updates will be posted on twitter as soon as they become available.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society
KEYWORDS: bitcoin; bitcointheft; currency; flexcoin; mtgox
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-91 next last
To: babble-on
Starting my own currency called 'Poop Coin'. Buy in soon while supplies last.


21 posted on 03/04/2014 9:02:59 AM PST by ImJustAnotherOkie (zerogottago)
[ Post Reply | Private Reply | To 3 | View Replies]

To: djf

There is a future for this kind of thing, but it is not for the storage of wealth. It will succeed when the primary use is for the transmission of wealth, like in credit card transactions.


22 posted on 03/04/2014 9:04:26 AM PST by Vince Ferrer
[ Post Reply | Private Reply | To 11 | View Replies]

To: Izzy Dunne

If “they” steal all the Bitcoins, then how much will the Bitcoins be worth?


23 posted on 03/04/2014 9:06:14 AM PST by cincinnati65
[ Post Reply | Private Reply | To 1 | View Replies]

To: Izzy Dunne; Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; ...
Thanks Izzy Dunne


Click to be Added / Removed.

24 posted on 03/04/2014 9:07:45 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. K

Maybe ‘stealing’ the bitcoins was not the ‘object’ of the theft. Just maybe they whole purpose was to make them disappear into nothing, remove the value and cause exact circumstances that are happening now, total chaos and devaluation in the ether-currency.

Now, who do you suppose would want that to happen?..................

If you said, “Any government on the planet.” you win the kewpie doll.

If you said, “A co-operative of many governments on the planet.” you win the grand prize - a vault full of Bitcoins..............................


25 posted on 03/04/2014 9:10:26 AM PST by Red Badger (LIberal is an oxymoron......................)
[ Post Reply | Private Reply | To 13 | View Replies]

To: bigbob

The smart thing to do is to have a wallet on an exchange, and have a local wallet.

AS SOON AS ANY COINS ENTER THE EXCHANGE WALLET, you send them to yourself locally.


26 posted on 03/04/2014 9:10:31 AM PST by djf (OK. Well, now, lemme try to make this clear: If you LIKE your lasagna, you can KEEP your lasagna!)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Vince Ferrer
There is a future for this kind of thing,

As a computer programmer, I understand the nuts and bolts of HOW the thing works.

But I have yet to figure out WHY I should use it.

I haven't see what it offers, beyond promised lower transaction fees (lower than CreditCard fees). And that it certainly not worth the risk I've seen.

The fact that it's outside government control is bait for all sorts of unsavory characters.

And the value of the dang things has gone from $500 to $800 and back in one day. Not what I would call a good investment.

It's all a chimera. So is regular currency to a certain degree, but this is further out there.

27 posted on 03/04/2014 9:11:24 AM PST by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Izzy Dunne

Folks, if you have Bitcoins, I’d suggest you keep them in YOUR OWN “WALLET” ON YOUR OWN COMPUTER. And then protect your own computer from attack or unauthorized access using standard security software.


28 posted on 03/04/2014 9:17:09 AM PST by House Atreides
[ Post Reply | Private Reply | To 1 | View Replies]

To: DariusBane

Excellent point. This approach has pushed the concept back ten years...something that legal action could never have done as effectively.


29 posted on 03/04/2014 9:22:46 AM PST by Portcall24
[ Post Reply | Private Reply | To 4 | View Replies]

To: Izzy Dunne

It is an anonymous, counter-party-less medium of exchange.

For instance, you might think you have a 100K account at Charles Schwabb.

But you only have that account if someone there AGREES with you.

And if for some reason, CS takes a hit, your money could be bye-bye before you even know it!

(I’m not dumping on Charles Schwabb, just stating the obvious.)


30 posted on 03/04/2014 9:23:39 AM PST by djf (OK. Well, now, lemme try to make this clear: If you LIKE your lasagna, you can KEEP your lasagna!)
[ Post Reply | Private Reply | To 27 | View Replies]

To: kjam22
I mean you steal all of it. So it becomes worthless. So what was the point of stealing it?

Do you think the electronic transfers could be completed, or mostly completed to sell prior to the word getting out?

In the electronic age, how fast after theft could they be used (immediately?) to purchase a real currency?

31 posted on 03/04/2014 9:24:40 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 6 | View Replies]

To: ImJustAnotherOkie

Reminds me of the fellow selling rabbit droppings as smart pills. After a guy buys some and tries one he says, “This tastes like rabbit poop.”

Where upon the first guy says, “See, you’re getting smarter already.”


32 posted on 03/04/2014 9:26:19 AM PST by Portcall24
[ Post Reply | Private Reply | To 21 | View Replies]

To: Travis McGee

Imaginary Coins are used by Obama&Co all the time.


33 posted on 03/04/2014 9:26:42 AM PST by Vaduz
[ Post Reply | Private Reply | To 8 | View Replies]

To: babble-on

I don’t think it is necessarily the U.S. it could be any nation state. Could be international bankers. Soros. I can speculate. Russian Mafia is the Russian State.


34 posted on 03/04/2014 9:29:05 AM PST by DariusBane (Liberty and Risk. Flip sides of the same coin. So how much risk will YOU accept? Vive Deco et Vives)
[ Post Reply | Private Reply | To 7 | View Replies]

To: djf
It is an anonymous, counter-party-less medium of exchange.

For instance, you might think you have a 100K account at Charles Schwabb.

As with all mediums of exchange, you only have value if someone else thinks you have value. FlexCoin bit coin holders likely will have trouble today convincing anyone else they have value.

It would be far easier taking Charles Schwabb to court to recover losses than FlexCoin. They still own the "commodity", but the commodity now has no value.

35 posted on 03/04/2014 9:30:11 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 30 | View Replies]

To: Cementjungle

Maybe because the sole purpose of government is to safeguard our rights, one of which is the right to property. JMHO.


36 posted on 03/04/2014 9:34:00 AM PST by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: House Atreides
Folks, if you have Bitcoins, I’d suggest you keep them in YOUR OWN “WALLET” ON YOUR OWN COMPUTER.

TIP #2: Don't forget about them. I saw a story about somebody who dumped their old computer, not realizing it had a quadrillion bit coins on the hard drive.

OOPS

37 posted on 03/04/2014 9:36:15 AM PST by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
[ Post Reply | Private Reply | To 28 | View Replies]

To: DariusBane
Is it possible that the biggest interest in destroying bit coins would be Nation States? If Bit Coins works, and eliminates State control of currency that would be an unparalleled form of freedom.

Central banks "manage the money supply", not government departments like the US Treasury.

Central banks are a creation of the financial elites, who have business roots that go back to the old banking families.

In the US, this goes back to Rockefeller and Peabody/Morgan, which were financed by European banking families.

International banking needs to protect its monopoly on the the creation of money. International banking (in the US this was the "old money" families in New England/New York, with the Rockefeller/Morgan houses sitting atop it all) does not tolerate any challenge to their Federal Reserve central banking system, and (co-inkadently) they also always have placed operatives at the top of the US espionage operations. The old banking families were always the leaders in the espionage business, and their modern American "descendants" are aware of the need for this. Thus we see the Wall Street/CIA connections at the highest level. Of course, in the UK there is a parallel relationship between the leaders of UK finance and UK espionage. It comes in delightfully handy in cases like this, where this is without a doubt a "black" operation embarked upon to "safeguard the US dollar", as this is "key to national security".

The silliest thing about bitcoin was the people who created it thinking that financial elites would ever let it displace the major currencies of central banking.

Of course, if somehow it was technically infeasible to "attack" it in the way they did, they could always legislate it out of existence.

The best way to defeat central banking is, oddly enough, by accumlating their currency and not borrowing at all from them. As you gather cash, you'll get rid of your debt, and it's through debt that the financial elites actually enslave the "sheeple". Only borrow directly from other real people (appropriately) to acquire capital required to put to work in a business, do not borrow for consumer spending of any kind. If you borrow, borrow directly from a real person. Distribute excess cash to secure vaults instead of keeping it in bank accounts, or lend it directly to real business owners as an investment. Only use the banking system to conduct transactions, not as a place to park your money or borrow.

This is the only way "out" of the financial elites' capital markets and banking monopoly.
38 posted on 03/04/2014 9:36:45 AM PST by PieterCasparzen (We have to fix things ourselves)
[ Post Reply | Private Reply | To 4 | View Replies]

To: thackney

Current Bitcoin quote is $664

That’s hardly “no value”.

Part of the reason for the recent spate of raids is the escalation of price.

These kinds of things will be dealt with.


39 posted on 03/04/2014 9:36:49 AM PST by djf (OK. Well, now, lemme try to make this clear: If you LIKE your lasagna, you can KEEP your lasagna!)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Izzy Dunne

“bitcoin” is a cleverly-implemented ponzi scheme.

You don’t “mint” them. You run a program that conforms to certain rules, and another program “says” that you have a bitcoin.

You don’t have anything. They don’t exist.

That would be OK if it were only a game that people play. But some people foolishly traded in real dollars for cleverly-designed pixels on a screen.


40 posted on 03/04/2014 9:43:55 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-91 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson