Reported by By Christena T. O’Brien of twincities.com (see original) .
34 year old Software Engineer, Jamie Russell, hoped to exchange digital Bitcoins for physical Bitcoin tokens, complete with tamper proof strips which concealed the digital keys. His concern was that his original Bitcoins in their all digital state were not secure enough.
In a twist he was swindled by a man purporting to make his digital coins physical. The Alleged UK based man, David Williamson, carried on a internet dialogue with Russell for over a year, gaining his trust. It wasn’t until after the theft that Russell learned that Williamson had stolen Bitcoins from various other victims.
After Russell transferred his Bitcoins to Williamson he received tracking numbers for items which were never sent.
Williamson ceased communicating with Russell, who has lost the six figure dollar amount of the digital currency.
This event feeds into criticisms of Bitcoins security especially when transferring to unknown parties.
Bitcoins thrive on their ability work person to person without needing a third party such as a bank or credit institution. Although third parties take costly fees for money transfers, they do offer security and the possibility for recovering stolen funds. In this case Russell can only hope that Williamson is tracked down and prosecuted. Russell stated that even if Williamson is captured, “I’m not expectant that I’m going to get any money out of him.”