Quote from: bigtimespaghetti on January 07, 2015, 11:03:31 AM

This will be interesting. If these coins go to an exchange (that accepts them), well that's obviously not good for their rep.

Large amounts have moved before to different places
Kind of amusing this time that an exchange is the one whose coins are going to be sold instead of it being some other site having an exchange sell their coins after getting hacked.
Sure some will be local bits but makes you curious where they will end up in the end after splitting it mixing it etc.

Quote from: Tzupy on January 07, 2015, 01:02:37 PM

If I were the hacker, I wouldn't try to sell the tumbled coins on an exchange (with KYC) for quite some time, too risky.
Instead, I would send them to multiple altcoin exchanges (that have no KYC) and pump up some less traceable alts.
Another possibility is to sell some of the tumbled BTC to fences on localbitcoins.

Would consider doing that as well if I were the hacker but also some other things, mix sell pump etc.
Anyways before someone else brings up blacklisting (Fungibility is important we can't discriminate the coins stolen yet each coin is the same as another coin like my dollar is the same as your dollar.)

Quote from: Chalkbot on January 07, 2015, 05:32:13 PM

Bitstamp is in the process of rewriting their entire system from the ground up, to prevent this sort of thing happening again. Can you imagine Visa doing this after the Target hack? No, they keep doing the same thing, because you guys keep paying for their losses. There's no point in them changing anything. Bitstamp had suck ass security, a hacker fined them 5 million dollars for it. Their security (supposedly) will improve as a result. Gox died as a result, and we'd all have been better off if it happened way sooner than it did. Incompetence is not an option in this space, unless you have a shit ton of money to burn.

True that

As a sidethought the main lesson from these hacks is that we have a hodgepodge of security measures that are used to protect peoples Bitcoins however because their is no uniform standard or means of securing encryption what we end up with is a variety of services with different levels of security related to Bitcoin assets and until we are able to set a uniform standard of safety and encryption that separates a services bank from its operating site any new service will have a varied level of precaution and security that we have to hope is secure enough to secure assets.

Best way around that is to develop value inside the blockchain itself (DAC's)
Next gen really does have some additional bonuses but for now guess we have to rely on centralized exchange risk.