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Crypto Market Roiled by New Allegations Against Tether, Bitfinex

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Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#161

Post by atomical »

shawnz wrote: post #96
peterlk wrote: post #8

It's almost like unregulated financial institutions have a tendency to screw over their customers... No one could have predicted this in the consistently solvent, regulated, and trustworthy cryptocurrency market. It's too bad bitfinex got ripped off by a surely unrelated entity. /s Have we learned our lesson yet?

What's the lesson? That cryptocurrencies have different risks than other kinds of financial technologies? I think that is pretty commonly understood already.

Fraud is a risk with other financial technologies too.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#162

Post by conanbatt »

peterlk wrote: post #8

It's almost like unregulated financial institutions have a tendency to screw over their customers... No one could have predicted this in the consistently solvent, regulated, and trustworthy cryptocurrency market. It's too bad bitfinex got ripped off by a surely unrelated entity. /s Have we learned our lesson yet?

Have you? If so, why do you need to invest in unregulated financial institutions?

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#163

Post by Scoundreller »

arcticfox wrote: post #82
loeg wrote: post #62

Earlier quoted context omitted.

Wouldn't it be surprising if the same people weren't behind Crypto Capital? Like, if you were going to embezzle your own exchange with vaguely plausible deniability, how would you do it differently from exactly as done here?

I'm curious who these Merlin and Oz fellows are, does anyone know more about them?

This may be 100% unrelated/wrong:

Check out "OZ49 Corporation". It has some shared directors with some other Panama crypto companies, and a director name Oz:

https://opencorporates.com/companies/pa/155664811

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#164

Post by mhluongo »

peterlk wrote: post #8

It's almost like unregulated financial institutions have a tendency to screw over their customers... No one could have predicted this in the consistently solvent, regulated, and trustworthy cryptocurrency market. It's too bad bitfinex got ripped off by a surely unrelated entity. /s Have we learned our lesson yet?

> It's almost like unregulated financial institutions have a tendency to screw over their customers...

Regulated institutions are great at it too.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#165

Post by nonbel »

JumpCrisscross wrote: post #157
nonbel wrote: post #84

Earlier quoted context omitted.

The FDIC is more a feel-good measure: >"Currently, the Deposit Insurance Fund (DIF), which is a fund set aside to cover the insurance obligations of the FDIC, has a required reserve ratio of only 1.35%. And that is only after a decision was made in October of 2015 to raise it, from its original level of 1.15%. Even more daunting, the DIF has until 2020 to reach this new 1.35% required reserve level. This means that,…

> The FDIC is more a feel-good measure No, it isn't. If the FDIC busts, the government would step in to back it up. Moreover, the FDIC's oversight keeps bank failures to a tiny fraction of the alternative, which we can now measure in the massive rates of fraud and failure around cryptocurrencies.

The FDIC and other schemes to intervene in the case of bad banks allows banks to get so huge they can't be allowed to fail. Then everyone needs to pay for the idiots who put their money into bad banks.

In fact, it becomes smart to put your money in these poorly run banks since they will make more money on riskier activities but get bailed out when the same fail...

Many people are dissatisfied with this situation.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#166

Post by village-idiot »

danaos wrote: post #113
arcticfox wrote: post #93

I wonder if this is somehow related, 550 BTC (~$3M USD) connected to 2016 Bitfinex hack were moved today: https://www.reddit.com/r/Bitcoin/comments/bha10i/bitcoins_fr...

This is only a small fraction of the 120k bitcoins stolen at the time though. It may be a coincidence.

Allegedly stolen.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#167

Post by jayd16 »

rorykoehler wrote: post #151
Scoundreller wrote: post #138

Earlier quoted context omitted.

The wallets have been untouched for a decade. The first bitcoin to sell from it wouldn't actually crash the market, but the emotional effect of a small chunk of a very large chunk suddenly moving would be fairly big.

Sell a tiny bit and then wait until it recovers. Rinse and repeat.

Sell a tiny bit, buy a lot when it tanks, sell the new lot.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#168

Post by Uptrenda »

That Buttfinex is a sinking ship is practically written on the wall in blood. If people keep sending irrevocable (and often untraceable) cryto-assets to these dubious third-parties then they deserve to be robbed, IMO.

It's delicious irony given that Bitcoin was created as a solution to third-party trust. So the people who are using all these services really don't know a thing about what they're trading. To them its just some warped techo-nerd 'coin' to speculate on. I have no sympathy for that. Maybe these traders will be spoon fed a lesson on what it is they're trading after their shitty exchanges burn them for the twelfth time.

Before anyone mentions decentralized exchange as a solution, you'll find the same incompetent people behind those projects, too. We're talking people who don' understand how an order book works and abuse distributed system architectures for marketing reasons. DEX has even more problems than just security so it's not going to be a solution any time soon.

Kind of sad how nothing has changed since the first exchange went down six frigging years ago. Mark Karpelès was practically a genius compared to the CTOs designing some of these shitcoin on-ramps.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#169

Post by api »

atomical wrote: post #159
themagician wrote: post #71

Earlier quoted context omitted.

The lesson will never be learned. The Ponzi scheme is as old as money itself. It’s never gone away. The one thing that crypto currency truly has revolutionized is the Ponzi scheme. You can do it any number of ways, add any number of twists, and do it over and over again. With crypto you don’t even have to be subtle. When the pot gets big enough you just outright steal it. It’s possible that Satoshi himself will try t…

It's safe to say Satoshi is dead. https://en.wikipedia.org/wiki/Hal_Finney_(computer_scientist...

He is the most likely candidate.

Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex

#170

Post by rorykoehler »

jayd16 wrote: post #167
rorykoehler wrote: post #151

Earlier quoted context omitted.

Sell a tiny bit and then wait until it recovers. Rinse and repeat.

Sell a tiny bit, buy a lot when it tanks, sell the new lot.

Could also do that but when you have Satoshi amounts the problem becomes getting rid of it so I'm not sure buying more will help beyond the obfuscation advantages of holding it in a different wallet.
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