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Bitstamp Accounts Frozen

news.ycombinator.com

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Re: Bitstamp Accounts Frozen

#11

Post by cb18 »

Animats wrote: post #4

This is strange. There's still nothing about this on their web site. It's very suspicious when a Bitcoin exchange claims problems on the deposit side and stops processing withdrawals . Nobody trusts a Bitcoin exchange in trouble, with good reason given the history. On the other hand, it's 6:30 AM in London, where Bitstamp is, and their staff is probably not in yet. Bitstamp is still processing trades; they haven't sh…

Who really knows what is going on at this point?

On top of that, Bitcoin, after being stable around $315-$320 or so for weeks, suddenly dropped to a low of $255 in the last 48 hours. Right now, it's around $270. Something is going on.

Stable for weeks is probably over stating it, looking at the chart it looks like almost exactly two weeks it was in that range, so technically it was weeks, but I wouldn't be quick to draw a direct connection between that recent price decline and this unfolding event, as the dominant pattern for the past 6 months or so has been a week or two of relative stability followed by a rapid decline.

[speculation] If this is a gox-esque scenario, there could be a connection with the recent price decline in that the price decline is what is causing them trouble and not a technical issue.

Re: Bitstamp Accounts Frozen

#12

Post by imperialdrive »

https://www.irccloud.com/pastebin/1cvm62al

this is all I could find from Twitter search: does the timing match up at all?

11:48 AM protip 11:48 AM and exchange is getting hacked now 11:48 AM GOXXED 11:49 AM an exchange 11:49 AM what 11:49 AM guess which one im goxxing 11:49 AM thats why prices are falling 11:49 AM → dzan joined ⇐ mpm quit 11:50 AM you sound like shovel 11:50 AM hi shovel

Re: Bitstamp Accounts Frozen

#14

Post by bdcravens »

moe wrote: post #10
jasonjei wrote: post #6

Until there is a bank that can credibly hold onto BitCoin deposits, these sorts of things are going to hinder further the viability and credibility of BitCoin as a mechanism of transaction (Mt Gox seems to have done a ton of damage). As of right now, it seems it's very hard for BTC to be stored safely at a stable price, and keeping your money in a world currency seems like a better investment, for now. I know my sent…

Since you appear to be struggling with the basic concept of bitcoin, here's the first phrase from Bitcoin.org for you: Bitcoin uses peer-to-peer technology to operate with no central authority or banks

Most Bitcoin users struggle with the basic concept of Bitcoin then. While you can "be your own bank", most coins (no reference, just surmising) are in exchanges rather than wallets owned by the end user. So despite the marketing copy, there's a ton of Bitcoin stored in what are essentially "banks".

Re: Bitstamp Accounts Frozen

#15

Post by shock-value »

moe wrote: post #10
jasonjei wrote: post #6

Until there is a bank that can credibly hold onto BitCoin deposits, these sorts of things are going to hinder further the viability and credibility of BitCoin as a mechanism of transaction (Mt Gox seems to have done a ton of damage). As of right now, it seems it's very hard for BTC to be stored safely at a stable price, and keeping your money in a world currency seems like a better investment, for now. I know my sent…

Since you appear to be struggling with the basic concept of bitcoin, here's the first phrase from Bitcoin.org for you: Bitcoin uses peer-to-peer technology to operate with no central authority or banks

The point is that most people are never going to adopt Bitcoin if they have to worry about the technical side of securing their own funds. And given that there are many examples of incompetence and/or fraud within exchanges and other nascent businesses that intend to handle elements of that security on behalf of customers, and no enforced regulations such as you find in the traditional banking sector, you can imagine that this isn't going to change any time soon.

Re: Bitstamp Accounts Frozen

#16

Post by freework »

bdcravens wrote: post #14
moe wrote: post #10

Earlier quoted context omitted.

Since you appear to be struggling with the basic concept of bitcoin, here's the first phrase from Bitcoin.org for you: Bitcoin uses peer-to-peer technology to operate with no central authority or banks

Most Bitcoin users struggle with the basic concept of Bitcoin then. While you can "be your own bank", most coins (no reference, just surmising) are in exchanges rather than wallets owned by the end user. So despite the marketing copy, there's a ton of Bitcoin stored in what are essentially "banks".

Can be your own bank, not "is and always be completely devoid of any kind of banking institute"

America is a free country, but not everyone in America is free (some are in prison, for instance).

Re: Bitstamp Accounts Frozen

#18

Post by downandout »

Animats wrote: post #4

This is strange. There's still nothing about this on their web site. It's very suspicious when a Bitcoin exchange claims problems on the deposit side and stops processing withdrawals . Nobody trusts a Bitcoin exchange in trouble, with good reason given the history. On the other hand, it's 6:30 AM in London, where Bitstamp is, and their staff is probably not in yet. Bitstamp is still processing trades; they haven't sh…

> This is strange.

It is indeed strange...and strangely familiar. Every Bitcoin company that has had massive holes in its books has first claimed that technical difficulties were the reason they had to suspend withdrawals. Then over the following weeks comes the annoucement that the money has been stolen, lost, or law enforcement moves in and says it has been embezzled.

I would be extremely uncomfortable at the moment if I had money in Bitstamp. If withdrawal capability does come back online, try to get your money out ASAP.

Re: Bitstamp Accounts Frozen

#19

Post by josephjacks »

Animats wrote: post #4

This is strange. There's still nothing about this on their web site. It's very suspicious when a Bitcoin exchange claims problems on the deposit side and stops processing withdrawals . Nobody trusts a Bitcoin exchange in trouble, with good reason given the history. On the other hand, it's 6:30 AM in London, where Bitstamp is, and their staff is probably not in yet. Bitstamp is still processing trades; they haven't sh…

Andreessen said on Twitter earlier today that he thinks the BTC price drop is due to inefficient miners selling BTC to fund OPEX and keep operations going. This activity is seen in the hash rate.

Re: Bitstamp Accounts Frozen

#20

Post by qnr »

bdcravens wrote: post #14
moe wrote: post #10

Earlier quoted context omitted.

Since you appear to be struggling with the basic concept of bitcoin, here's the first phrase from Bitcoin.org for you: Bitcoin uses peer-to-peer technology to operate with no central authority or banks

Most Bitcoin users struggle with the basic concept of Bitcoin then. While you can "be your own bank", most coins (no reference, just surmising) are in exchanges rather than wallets owned by the end user. So despite the marketing copy, there's a ton of Bitcoin stored in what are essentially "banks".

> most coins (no reference, just surmising) are in exchanges rather than wallets owned by the end user.

Are you saying there are 7+ million BTC stored on exchanges? I disagree based on two data points: Bistamp's reserves were 180K in November 2013 and MtGox's were 850K (with 650K of them missing) at the time of its death.

Even if you add BTC-E, Chinese exchanges, Coinbase and LocalBitcoins, it most likely won't exceed 2-3 million which means the remaining 80% is owned by end users directly.

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