Their Karma Ran Over Their Dogma

An online selling site has just been hacked, and lost $2.7 million dollars due to a Bitcoin glitch. The site, known as Silk Road, was primarily used for buying and selling illicit drugs. Silk Road served as a middleman between buyers and sellers, holding money in its own accounts during the deal.

Silk Road was only accessible on the deep Web using a special program known as Tor, which is often used to hide one’s physical location; bitcoins were used exclusively on the site, mostly because they were electronic and untraceable. However, bitcoin accounts also lack the protection most bank accounts have, including government backed insurance. At the time of the hacking, there were 4,440 bitcoins on the site, each worth nearly two thousand dollars.

Just from this, you can tell just how much of a set up for disaster this was.

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