It doesn't seem like it would work.

You pay and they continue... then what?

If the DDoSer linked themselves to a psudo-identity they could build a rep for not doing that.

But it's still ridiculously unstable because once you pay you are a better target. Oh, n/m about the psudo-identity, they can just pretend to be someone new DDoSing you.

Odd to me that they would try for such a high amount in this case. Without knowing much about WalletBit it makes me wonder if the ransom is just weak cover for someone doing it out of spite.

Again, even if they pay, in a high profile case like this it's going to be hard to find places to spend those Bitcoins because of their traceability.

This is sadly already common in the poker world, HYIP forums, etc.  It was only a matter of time

I think somebody has already tried DDoS+ransom on MtGox, a while ago, IIUC.

indeed, thats what I'd expect to happen.


Then, after some time, the victim happens to encounter a friendly and helpful person with lots of connections
into "the scene", which points out (s)he can figure out who is behind those attacks and maybe help the victim
stopping them discretely for a way smaller "fee"....

Maybe it goes on even more subtle, along the lines that the victim just ends up doing "business" with the "angle",
you know, that kind of business which is more profitable for the "angle" and more risky for the victim. Surprisingly,
since the victim engaged into that business, those attacks will cease....


And the fun fact is: suddenly all those state-haters and freedom lovers start yelling for law enforcement

May be speculation, because of recent hacker attacks too much, and too regularly, you feel it

I'd take them.

Anyone got mnemonics/short hand or something that would allow a person to create and sign transactions in prison?  Then send them out to someone you can trust enough to broadcast to network (but perhaps not enough to keep your private keys.)

I remember reading an article on online casinos that have this problem.  The criminals did not ask for bitcoins, just USD by wire transfer like through western union.

Could not find the original article, but here is another one:
http://www.blackjackchamp.com/casino-news/15733-online-gambling-sites-face-extortion/

If nothing else, over time, this will encourage those developing infrastructure and network protocols to evolve the internet to have abilities to rapidly mitigate them.