> Cumbria University admitted it has no way of checking whether pupils had earned their virtual crypto currency by stealing, through botnets, by legitimate mining and trading, or via drug sales on Silk Road.
They have more chance of discovering the source of bitcoins than real money. They can trace back through every bitcoin transaction ever made. Try walking into a bank and asking where your client's payment came from.
Do universities check that traditional tuition payments haven't come from nefarious activities?