Just wanna know what is the legal stand of Canada on Bitcoins..? because this incidents appears like RBC treats bitcoins as drugs, is it a problem with a particular bank..!

You do realize this requires the attacker to have access to the CPU.  If the attacker has access to do the low level hardware you system is likely rooted, and he is reading your passphrase as you type it.

The one noteable exception is this makes VPS even less secure.  They already were a horrible idea for Bitcoin security but I guarantee you at least one "professional" bitcoin site is running on a VPS right now. Information security begins with physical security and you can't have physical security inside another persons vault (your VPS running on their hardware).  Title should be changed to "Using a VPS means you can be hacked (by this and countless other attack vectors)".

the chief editor of a major german economic newssite "Handelsblatt-online" said publicly that

-bitcoin was hacked
-forged bitcoins are circulating
-the central bank of bitcoin (mtgox) went bankrupt

http://www.handelsblatt.com/9534814.html
 

@sitarrow thx for the material! long week end of study ahead.

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