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Author Topic: How to avoid thefts using stolen bitcoins.  (Read 2023 times)
cor
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July 13, 2014, 12:55:11 AM
 #21

Let me start that this might sound stupid, since I have no idea about any technical thing about bitcoins, programming, etc, but I was reading about the guy who lost over 1000 bitcoins and came up with this. You tell me if it's posible, realistic or it's not. Here we go:

Someone creates a business called X, and what it does is the following: once you are robbed, you send them the adress and number of btcs stolen. Since this moment, the ddbb from X monitors the blockchain from those btcs, adding each adress to the ddbb. At the same time, exchanges, bitcoin shops, and gateway payments are connected to that ddbb, so since the moment they receive btcs from an adress that is on the ddbb would raise a red flag and freeze the btcs.

Obviously, since someone reports would have 24/48 hours to prove they were stolen ( screenshots, police reports, etc). And also, for a business to be connected to that ddbb would add value to their work.

Good idea? Stupid?

Wanting to have the stolen coins returned would open a huge space for fraud.

One of the beautiful features to bitcoin is that it is YOUR MONEY and nobody can decide to revert your transactions.
Unfortunately, we're so much used to be nannied by banks, authorities and insurancies, that instead of enjoying the freedom to actually own money, we seek refuge with someone "bigger" while forgetting that even those "big ones" have failed many times.

Instead of looking up to "authorities", everybody just look down to your hands/computers/mobiles and PREVENT from having your bitcoins stolen.
If you want to own this money, take the responsibility or go back to your local bank with insurance.

tl;dr
there are numerous advises with long to-do's to secure your btc holdings
OR JUST get a trezor once on sales and skip those to-do's

A shameless selfpromo I know Smiley but this or any other good hardware wallets will change the current security around bitcoin.

 
 

BurtW
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July 13, 2014, 01:12:38 AM
 #22

This?  Again?

Read my signature:

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
jjc326
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July 13, 2014, 02:50:26 AM
 #23

I think it's got good intentions but would be almost impossible to carry out. I think the bitcoin community values freedom and the idea that there are no limits on who you can send to. There is still the issue of fraud though because someone can claim someone stole from them when maybe they did not. And then if it's disputed (like someone saying they bought something and it's defective) so you'll still need an arbiter to decide whether bitcoins get blacklisted or not.
Harley997
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July 13, 2014, 03:31:31 AM
 #24

This?  Again?

Read my signature:

**signature**
Bitcoin must have unqualified fungibility to survive as a form of money.  We must support all efforts that protect and improve the fungible nature of Bitcoin and stand firmly against anyone or anything which threatens this essential property.
This is 100% true. Any form of money that is not fungible will eventually fail, maybe not right away, but will eventually as the lack of fungibility will eventually be abused by someone, eroding trust in the money itself.

▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄
PRIMEDICE
The Premier Bitcoin Gambling Experience @PrimeDice
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jc01480
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July 13, 2014, 07:08:27 AM
 #25

What happened to Klee's post?  Trying to get up to speed on where he's at.  Any luck getting them back?
BurtW
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July 13, 2014, 11:49:12 AM
 #26

The hacker agreed to return some BTC within 24 hours, some BTC within a month or so, and some of the NXT.  The hacker basically claimed the 500 BTC bounty for finding himself and returning funds.  See the very last post in that thread.

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
CIYAM
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July 13, 2014, 11:52:17 AM
 #27

True - but the hacker(s) gave themselves 36 days to return half of what they have promised (plenty of time for someone to "sell up and leave the country" if you were concerned with being located).

With CIYAM anyone can create 100% generated C++ web applications in literally minutes.

GPG Public Key | 1ciyam3htJit1feGa26p2wQ4aw6KFTejU
musician (OP)
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July 13, 2014, 02:32:36 PM
 #28

Where has the thread gone?
CIYAM
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July 13, 2014, 02:35:12 PM
 #29

Where has the thread gone?

Here: https://bitcointalk.org/index.php?topic=690353.0;topicseen

With CIYAM anyone can create 100% generated C++ web applications in literally minutes.

GPG Public Key | 1ciyam3htJit1feGa26p2wQ4aw6KFTejU
LiteCoinGuy
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July 13, 2014, 02:39:57 PM
 #30

I must say this is a problem for Bitcoiners when their coins get stolen ...

I think that hackers are kinda happy that Bitcoin was created in other way than we are ...
They have so many chances to get people's coins ... and then well ... chances that they will get caught are lower than than that they will somehow withdraw it with no tracking possible Sad

And this is a problem I must say.
But you have to remember that most of the hackers are doing really simple tricks and you are able to secure yourself ...


Almost every video about "how to get started with Bitcoin"  is sharing main security steps which you HAVE to take if not you are placing yourself in a risky situation.

Strong password. Never stored! Just in a brain or a sheet of a paper cut in a half and placed in two different secure places.

-Layer security  ex.Firewall = mininum 2x firewall - router + OS

and be AWARE of phising e-mails! ALWAYS check what is a LINK connected to a button "login" in your e-mail from FB or Twitter or ANYTHING else (Forum/etc).

Bitcoin is a digital currency.

If you are hodling - store COLD-STORAGE (offline!)

For spendings follow security steps and decrease the risk!

Regards..



If you HODL store it CODL!


 Grin best advice ever!

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July 13, 2014, 04:27:02 PM
 #31

I'm not a thief but if I was and it was a significant amount, I'd break it up into smaller chunks and then sit on it for awhile.

Then trade it with some un-suspecting newish users NOT using an exchange for altcoins, maybe litecoin. Send the altcoins through a mixer, and cash out the mixed altcoins.

The tainted bitcoins would be someone elses problem, not mine.

That's why address blacklists etc. that return stolen coins don't work.

The person who ends up losing coins isn't the person with a security problem that had them stolen but someone else who didn't have a security problem. And it isn't the thief.

QuarkCoin - what I believe bitcoin was intended to be. On reddit: http://www.reddit.com/r/QuarkCoin/
jjc326
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July 13, 2014, 04:30:01 PM
 #32

Yeah there would always be a way around your proposed blacklist too, as pointed out by prior poster.  They could sell on the private market, or sit on it for a really long time.  Even if you had to sell it small bit by bit, that wouldn't deter people stealing. 

I read story after story about people losing BTC to theft and not 100%, but SO MANY are preventable.  I mean, I hear some people with thousands of dollars worth, and how they were robbed, and I look at me with like .5 BTC and my .5 is a lot safer than 100 BTC people store.  It's just overconfidence or stupidity.
hollowframe
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July 14, 2014, 04:35:29 AM
 #33

This has been said before, but I will say it again. This type of plan, although noble would make bitcoin to be no longer fungible and as a result would no longer be any kind of payment method.

One other question: if your central authority could track stolen bitcoin, why couldn't they simply instruct the miners to not accept transactions out of addresses associated with the stolen coins?
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