14 Aug '12, 7pm

First Bitcoin Lawsuit Filed In San Francisco

A recent theft at Bitcoinica , one of the largest Bitcoin exchanges, resulted last week in a debut for the currency in the California court system. Four prominent members of the Bitcoin community, including Jed McCaleb —the original developer of Mt. Gox, the largest Bitcoin exchange and a competitor to Bitcoinica—filed a lawsuit on 6 August against the company, seeking reimbursement for US $460 457 in lost funds. While there have been multiple hacking incidents since the cryptocurrency went online in 2009, this is the first time members of the community, have taken legal action. The whole affair started in March when hackers skimmed over 46 000 BTC from the exchange with an attack aimed at the Webhost, Linode. Three months later, Bitcoinica Consultancy, which has supposedly been handling the exchange since this April, announced that it lost another 4 ,000 BTC (about $350 a...

Full article: http://spectrum.ieee.org/tech-talk/computing/networks/fir...

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Created by teenager Zhou Tong, Bitcoinica was one of the most successful Bitcoin exchanges until it claimed, earlier this ...

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