It seems that someone recently pulled an Ocean’s 11 on an unsuspecting geek who goes by the internet handle Allinvain.
According to his post on the BitCoin forums, someone ripped him off for $500,000 in internet currency.
BitCoin’s strength is also its weakness in this example — it’s decentralized and almost entirely anonymous. Had something like this happened through PayPal, a more concrete trail would have been left behind.
Assuming this isn’t a hoax, let’s go over a couple points on BitCoin that are important to bear in mind.
- In the words of BitCoin developer Jeff Garzik, “Just like a real wallet in your pocket, a BitCoin wallet can be stolen.”
- Your BitCoins are kept in an electronic wallet file on their computer. They’re not kept in some sort of bank. BitCoins are gone forever if the computer they’re on is lost.
Business Insider Emails & Alerts
Site highlights each day to your inbox.