March 4, 2014
Bitcoin Loss Highlights Elusive Paths of Regulation (PETER J. HENNING, 3/03/14, NY Times)
"...He would not have made them sheep."Can nearly $450 million go missing without a crime taking place? That is only one of the questions stemming from the collapse of the Bitcoin exchange Mt. Gox that present a host of challenges for governments worldwide that are struggling to regulate virtual currencies.Mt. Gox filed for bankruptcy protection in Japan after the disappearance of more than 744,000 Bitcoins owned by customers, along with 100,000 of its own. Unlike an ordinary robbery, this appears to be the work of hackers who exploited a weakness in the system for tracking Bitcoin transactions that allowed the currency to be diverted, perhaps over a few of years.The number taken amounts to about 6 percent of the total Bitcoins in circulation, raising serious questions about how any virtual currency can be made safe for consumers and investors.
Posted by Orrin Judd at March 4, 2014 2:24 PM