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Crypto CEO threatens customers after mistakenly sending them millions

mashable.com

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Re: Crypto CEO threatens customers after mistakenly sending them millions

#71

Post by leokennis »

sumedh wrote: post #51
forty wrote: post #47

Earlier quoted context omitted.

The fact that you can give away millions by mistake and do nothing about it then break the systems then do not much about it says a lot about crypto currency practicality ;) I wonder when this madness is going to stop.

> it says a lot about crypto currency practicality Isnt that a feature not a bug? You dont want a central authority like a govt or a corporation messing with your money(tokens)

I think most crypto-supporters overestimate how much of a police state modern banking is, and underestimate how much of a wild west the current crypto ecosystem is.

They’re willing to trade a system with reasonable and democratic oversight for a “free for all” shark infested pool that will rip from their hands their retirement fund just before they mean to retire.

Re: Crypto CEO threatens customers after mistakenly sending them millions

#72

Post by dhaavi »

toomuchtodo wrote: post #29
systemsignal wrote: post #28

Earlier quoted context omitted.

How is it fraud if the smart contract allowed it? Actually curious what makes it fraud. Just because one group wants the money back?

Lawful intention. What the smart contract dictates isn’t necessarily the final authority, but what the intent was (per legal interpretation of state contract law).

The user (supposedly) read the (smart) contract and agreed to it as it is. So how is that resolved then?

Re: Crypto CEO threatens customers after mistakenly sending them millions

#73

Post by tehlike »

arcticbull wrote: post #69
tluyben2 wrote: post #60

Earlier quoted context omitted.

Hmm interesting. But you cannot explain this as not a tax event to the irs if you send back 100%? Of course, the receivers might not live in the US. Sounds like lot of countries would be friendlier than what you say.

Re: (1) I'm genuinely not sure how that would work. I suspect if you claimed you received it in error and sent it back, that would probably not incur an actual tax obligation. Not sure though, that's the kind of thing I'd want to run by a tax attorney if it was a non trivial quantity. Re: (2) definitely, which makes the threat a lot stranger.

This is not that different from a bank error where they deposit few million dollars and take it back

It is not income if it's error and you return it.

Re: Crypto CEO threatens customers after mistakenly sending them millions

#74

Post by forty »

sumedh wrote: post #68
forty wrote: post #66

Earlier quoted context omitted.

I'm pretty sure I do want people and banks to be able to get back millions they have given away because of a bug :)

yes that is a valid point but there are others who dont want that because then the central authority can take away your money or stop payments send to you just because they dont like you like what happened to Wikileaks.

Yes, it's true that in case you are in the legendary fascist state that steals your money but allows you the hide your money in crypto currency it can be useful ;) it reminds me of https://xkcd.com/538/ (note that I do not count government taxes in democratic countries as stealing, while I do think tax avoidance is stealing in that case).

Re: Crypto CEO threatens customers after mistakenly sending them millions

#75

Post by arcticbull »

tehlike wrote: post #73
arcticbull wrote: post #69

Earlier quoted context omitted.

Re: (1) I'm genuinely not sure how that would work. I suspect if you claimed you received it in error and sent it back, that would probably not incur an actual tax obligation. Not sure though, that's the kind of thing I'd want to run by a tax attorney if it was a non trivial quantity. Re: (2) definitely, which makes the threat a lot stranger.

This is not that different from a bank error where they deposit few million dollars and take it back It is not income if it's error and you return it.

Sounds reasonable. Not sure how or if I'd report it in that situation, though.

Re: Crypto CEO threatens customers after mistakenly sending them millions

#76

Post by jbverschoor »

stordoff wrote: post #50
toomuchtodo wrote: post #29

Earlier quoted context omitted.

Lawful intention. What the smart contract dictates isn’t necessarily the final authority, but what the intent was (per legal interpretation of state contract law).

I wonder if the argument will become what is the contact - essentially, is it specific transfers as implemented by the smart contract, or is it to be bound by the smart contract, even if these transfers weren't in the contemplation of the parties at formation?

Depends who you ask under what circumstances

Re: Crypto CEO threatens customers after mistakenly sending them millions

#77

Post by lowkey »

jjeaff wrote: post #67
lowkey wrote: post #62

Earlier quoted context omitted.

You are confusing cause and effect. Prices go up over time as measured in fiat because of monetary inflation (i.e. money printing) by the Fed which dilutes the purchasing power of the dollar. M2 monetary supply inflation coupled with the velocity of money causes CPI to increase, not the other way around. 70% of all the dollars ever created were created since the invention of Bitcoin. Please substantiate your claim th…

Not that it is definitive proof, but these same alarm bells were going off when we drastically increased the money supply to combat the financial crisis in 2008. And inflation never happened. The reason we aren't, at least for now, likely to see serious inflation due to the recent increase in money supply is because most of it entered the economy through the Fed's bond buying program. So the bonds went on the Fed's b…

> The reason we aren't, at least for now, likely to see serious inflation due to the recent increase in money supply is because most of it entered the economy through the Fed's bond buying program.

In what fairy-tale world do you live in where we are not experiencing inflation? Seriously, do I actually need to justify the fact that we are experiencing inflation as a result of money printing in a world where Biden just explained that his $3.5 Trillion dollar stimulus bill is actually going to be FREE since $3.5 Trillion = $0 in politician math?

I highly doubt that 100% of the significant increase in prices over the past year was due to supply chain issues and 0% can be attributed to the exponential increase in money supply.

Also, to the sister comment arguing that it’s all due to an increase in the size of the population, has the population increase 40% in the past year? As we begin to open up the economy the velocity of money is increasing and inflation is the natural result.

Re: Crypto CEO threatens customers after mistakenly sending them millions

#79

Post by lowkey »

bruce511 wrote: post #65
arcticbull wrote: post #49

Earlier quoted context omitted.

Wow that would be amazing if it were true or sensical or really even grounded. Inflation in the real world isn't defined by supply but rather purchasing power as measured by CPI. Your definition is closer to the Austrian definition, long debunked because what people do with that supply is as important as its existence. The M2 supply increased 15X since the 70s but purchasing power only dropped by a factor of 7, meani…

Agreed. For starters population growth is part of the equation. Consider the following scenario. There are 10 people in the world, and $100. So all being equal [1] each has $10 to spend. (Remember "money" is just a useful way of measuring accumulated social value.) Fast forward a few years, now there are 100 people, all creating social value. To maintain the status quo the money supply must now be $1000. 0% inflation…

> So the increase of money supply, taken as a measure by itself, is a meaningless number.

The M2 money supply has been diluted by 40% over the past year. The population has not meaningfully changed over the past year. Official inflation is running at 5.6% (almost 3x the target) and un-official measures range from 12-20%.

All other things being equal inflating the money supply absolutely has a disproportionate effect on inflation.

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