A user of Bitcoin virtual currency alleges he was hacked of $500,000

A user of Bitcoin virtual currency alleges he was hacked of $500,000

A user of Bitcoin open-source virtual currency project claimed that his 25,000 Bitcoins, technically valued at close to $500,000, had mysteriously been transferred to an unknown user's account. Owners of the project cannot verify or disclaim these allegations.

Allinvain speculated the thieves made off with the windfall after using malware to compromise his Windows-based computer.

"I just woke up to see a very large chunk of my bitcoin balance gone," the user wrote. "I feel like killing myself now."

Inasmuch as Bitcoin is built on a peer-to-peer foundation that completely bypasses any sort of centralized database it cannot be detected exactly even by the architects of the digital currency whether it is an elaborate deception.

Moreover, cash stored in bank accounts or paid using credit cards is often protected by guarantees from government agencies, such as the Federal Deposit Insurance Corporation, or card issuers, such as Visa.