FBI solves $6.6 million bitcoin theft and bitcoin usage continues to grow

Forbes Magazine reports that the FBI has seized $4.5 million from two men who allegedly stole 5,400 bit coins in 2013. The theft led to the closure of Sheep Marketplace, which had sprung up in response to the closing of Silk Road. An FBI spokesman remarked: “These are not sophisticated criminals. They were curious kids who exploited a poorly made website.”

Bitcoin is seven years old and it is just experiencing problems that most important new technologies have experienced. Early bitcoin markets comprised some inefficient companies and custodians

Despite setbacks, bitcoin usage seems to be growing and market perceptions are changing. New exchanges, such as Coinbase, take both security and regulation seriously. There is substantial investment in security analysts and experts to work with regulators. A growing number of companies are using BitGo, the leading provider of security software in the bitcoin space. The companies built on top of its technology have sent over $1 billion in transactions so and not a single penny has been stolen.

This growth of transactions across a decentralised peer-to-peer payment network is posing daunting questions for law enforcement, regulators, and all those lucky people charged with developing long term currency trading and cash management strategies in banks and other financial institutions. May they stay lucky.

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