The implants Grand discovered were also all in wallets sold by unauthorized online sellers who seemingly ran fly-by-night operations that weren't in business for long. But the implants found in wallets sold by CryptoBilis and the European electronics chain indicate the attackers have switched tactics and may be deliberately compromising wallets sold by authorized resellers now.

This concept of financial freedom—not having to trust anyone else—is the logical end point of the belief that the systems of American life cannot be mended, only circumvented. Bitcoin, I was told again and again, was safe wealth specifically because of its distance from central bankers. Though the currency's value was susceptible to the day's memes, it ultimately required confidence only in code. Bitcoiners call this perceived freedom "self-sovereignty," and its emergence as a primary value signals how fully people have lost trust in national institutions.

The mysterious collapse of a European cryptocurrency exchange helps to explain why the industry hasn’t shaken off its reputation as a magnet for criminals.

© Maciek Nabrdalik for The New York Times