Bitcoin, for those not aware, is a completely digital currency — one where exchanges between individuals are largely anonymous and secured through cryptography, and one that has seen its hype-meter go off the charts in recent months. That, inevitably, has had some people waiting for a fall, and it took a big one this week. While things have since bounced back, the value of the currency on the so-called Mt. Gox exchange dropped from around $17.50 to just one cent in a matter of moments during the early hours of June 20th — a drop that’s since been attributed to a compromised account. Thanks to a daily withdrawal limit, however, that apparently only resulted in $1,000 actually being stolen, and a claims process has now been set up for those affected.
While not directly related to the sell off, the Electronic Frontier Foundation (or EFF) also dealt a bit of a blow to the upstart currency this week, when it announced that it would no longer be accepting Bitcoin donations. According to the organization, that’s both because it doesn’t “fully understand the complex legal issues involved with creating a new currency system,” and because it doesn’t want its acceptance of Bitcoins misconstrued as an endorsement of Bitcoin. Head on past the break for an account of the aforementioned plunge as it happened.
[Thanks, Zigmar; image: Wikipedia]
Continue reading Compromised account leads to massive Bitcoin sell off, EFF reconsiders use of currency
Compromised account leads to massive Bitcoin sell off, EFF reconsiders use of currency originally appeared on Engadget on Wed, 22 Jun 2011 06:56:00 EDT. Please see our terms for use of feeds.
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