Someone followed the btc-trail through addresses? So we maybe can see where the money is lying and if it is moved.
What about that talk of a "paper wallet" yesterday? What do you know about that, bitcoin.me? Seemingly you know more than most of us. Please share. A paper wallet has been generated and all outstanding funds should be going there soon.
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A more proper shutdown would have gone something like:
"We regret to announce that GLBSE will be closing. It turns out that operating the exchange poses some significant legal risks that we are not comfortable with. As of now, all trading is suspended. Users may login to withdraw their BTC. Issuers may do the same, and can also download their database of who owns what shares."
Would that have been so hard?
It's still not too late to do exactly that.
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I hope the funds are returned; this will resolve most of my objection.
Same here. That, and giving the database to those users/issuers who need it. It's still a great loss, and has been handled terribly, but if he does these two things, I will feel satisfied that he has, in the end, done all that he ought to to fix the situation. Edit: An apology would be nice too, but that may be pushing it. |
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In general I agree, however in this case that is punishing the whistleblower in regards to Nefario. The tags should be focused on individuals like Theymos who intended to continue to run the scam before Nefario stopped it.
So what, he gets to just say one day "Oops, I've been running illegal shizz this whole time. I'mma shut it down and keep all the BTC?" That's a helluva business model. |
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You should consult a lawyer before starting any business, or listing any IPO.
I did neither. I just opened an account and deposited 50 BTC. When you work with the mafia in the business world they may not disclose to you that what you are doing is illegal, but there is a minimum amount of effort and common sense you are expected to have as businessmen. If you invest on an unregulated stock market, common sense dictates the risks.
If the exchange was in fact illegal, not disclosing this to all affected parties is by itself justification for a Scammer tag IMO. |
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GLBSE itself was a criminal organization. This is like arguing that a mafia don has an obligation to talk it over with his consigliare and his Lieutenants before going to the police to turn them in. Nobody cares that you all signed a blood oath together, those private rules are entirely irrelevant.
As a simple non-shareholder user who opened an account, deposited BTC, and then had it all disappear in a matter of hours, I saw no disclosure that anything about the place was in any way illegal. There was no warning when signing up like "By using the platform you risk losing everything if regulators interfere." Y'all seem to be saying that the supposed illegality of GLBSE was and is glaringly obvious. Well it sure wasn't to me, if in fact it even is. Just how deep should one have to dig to be considered to have met the obligation of Due Diligence? Should I have been expected to consult an attorney before signing up? |
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Screen cap of ASICMINER chart on GLBSE shortly before it went down. https://i.imgur.com/mW215.pngI dunno if this is useful at all or not, but here it is. |
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Seems to have worked for glbse you own: start now, ask lawyer later. Oh, wait, didn't work so well, did it?
http://bitcoinweekly.com/articles/interview-with-nefario-founder-of-bitcoin-globalKiba: What was the most challenging part in developing the GLBSE?
Nefario: Going live...sooner than intended.
What actually happened was I told a few people "hey this is there to play with, let me know what you think", came back a couple of days later and found someone had IPO'd on the exchange over the weekend!
In an instant this turned this project from Alpha testing to LIVE with responsibility. I've never run a service before, and getting used to the responsibility was hard.
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I have nothing but a promise,that's good enough for me  That's too good not to quote. |
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In that case you'll have to wait till the partners sue nefario for destroying all the value of glbse. Because for damn sure it wasn't us who shut it down and confiscated everyones bitcoins.
First you say to calm down and that all our coins are safe and to be returned imminently. Now you say we'll have to wait on a lawsuit. Which is it then? |
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first off they are a business they dont have to tell us shit, if they dont want to.
It's a little different when the business takes pre-order money from customers (100% of the purchase price I might add) to fund the development of the product. In a case like this, the customers are more akin to shareholders IMO. |
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They could also insure the vetted companies' clients and shareholders against this kind of failure.
The premiums would be out of reach of most small businesses, members. Just think of how much such an organisation would have had to pay out from the failures which have happened this year alone. Its in the millions. The idea being that the vetting process itself would protect the insurer against having to pay out, and more importantly, keep the company on the up-and-up so that it does not fail in this way. |
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MtGox *does* the hosting, in other words, they can read your PMs. So if MtGox gets shutdown, the Bitcoin community will lose its main exchange as well its main source of communication? That's kind of ironic for a decentralized protocol. Not to mention that they are both on US ICE-vulnerable GTLDs. |
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I think we should start an investigatory company that vets all these securities to make sure they're on the up & up, and prescribe a common set of guidelines for them to follow, so that they're not likely to disappear overnight with their investor's money and accusations of insider trading.
Srsly tho, this doesn't sound like such a bad idea. They could also insure the vetted companies' clients and shareholders against this kind of failure. Of course there's still the problem of watching the watchers. |
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Difficulty will adjust and we'll all be back where we started ... except our pockets will have emptied themselves into the ASIC manufacturer's pockets. Certainly not a criticism of the manufacturers - just a simple fact that's how it works.
Shovel-making sure is a sweet business to be in during a gold rush. |
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A paper wallet has been generated and all outstanding funds should be going there soon. Its not an easy process to wind down such a large company like GLBSE as you can imagine. Nefario is still in contact with everyone and untill he refuses to communicate via secure channels things are still in motion, albeit slowly.
I don't want the funds going anywhere but into the wallets of their rightful owners. I feel sad that in all likelihood any visible bitcoin company is going to face the same fate as GLBSE and its not really nefario you should be angry about.
I'm angry with the way this whole thing has been (mis-)handled. I see no one but Nefario to blame for that. I do believe he said on glbse.com that he would begin returning funds "today", which is now yesterday. I'm still waiting empty-handed. |
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You might want to think twice before using Linode: In early March 2012, the New Jersey-based web and cloud hosting company Linode was suspected of robbing many popular Bitcoin services. A vulnerability in the customer support system was used to obtain administrator access to the servers. Once the Linode servers were compromised, eight accounts dealing with bitcoins were targeted. The hardest hit was the bitcoin trading platform, Bitcoinica. This resulted in the unauthorized transfer of BTC from the "hot wallets", a term used to describe operational withdrawal wallets, of the services affected. A severe bitcoin-denominated theft, the Linode theft also affected Tradehill, but no coins were stolen from them; instead, Tradehill had a short downtime because of the incident. In the aftermath of this theft, all the services migrated to other platforms and Linode remains with a negative connotation to this date.
https://bitcointalk.org/index.php?topic=83794.0#post_linode_hacks |
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I was just reading an old Nefario interview from June 2011, and the following bits (among others) jumped out at me given where this ended up at: [...] we suspect that within the next 6 months many if not most bitcoin exchangers (especially MT.Gox, but also non exchanging services such as glbse.com) will be shutdown by various authorities around the world.
This will cause a liquidity problem for us(never mind our prime service being out of operation) and nearly every other business that uses bitcoin (this includes our suppliers). It would also kill the overall buying power that has grown with bitcoin over the last 6 months or more. This will seriously hurt our ability to operate and our bottom line.
To prevent this happening we hope to have the nomico.in (and CryptoCloud for it to run on) up and running before this eventuality. Find the full interview at: http://bitcoinweekly.com/articles/interview-with-nefario-founder-of-bitcoin-globalIn the same vein, I posted this earlier, but will make it more prominent here: We've just completed our first step in disaster planning for GLBSE, the unfortunate (and hopefully unlikely) event of my death.
I am now happy to say that should I kick the bucket GLBSE would be able to continue on without me in full functionality.
Our next step is to try to have encrypted, near realtime snapshots of the GLBSE database stored offsite. Currently we have daily offsite backups.
Nefario
https://bitcointalk.org/index.php?topic=84062.0 |
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The biggie would be if Mt. Gox packed it in.
In the classical markets, an entity like this gets labeled Too Big To Fail. We really could do with having some viable alternatives out there BEFORE we desperately need them. |
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