I was under the impression that Bitfinex lent the margin traders money from the lenders and if a positive the trader takes goes south the position is closed and only the trader loses money.

Well when I used to use that site I don't remember a fractional reserve.


Could you explain this for me? I am generally curious. I have not used the site in a while and I am sure other people are interested in the reasons it doesn't look good.

I feel stupid, I looked at http://bitcoinity.org/markets and 144,000 Bitcoins takes the price on Gox down to $26.

Obviously I am confusing something here?

Hey.

Can I claim this tier? I have added signature type C and a inputs.io username to my account signature

1v.io/drawingthesun

10TH/s is far better than my current bag, ActiveMining.

We are meant to have a prototype around about now but we still have nothing, well not nothing we have 700GH/s.

My choice in securities was not good. At least Labcoin gave me a profit.

Goodluck Labcoin shareholders, at least your mining above 1TH/s.

So today or tomorrow we are expecting a financial report.

I am also hoping we get the prototype in the next 2 days too.

If the site is running fine and will generate more and more profits, it's in RealSolids best interest to keep as much profit to himself over the long term. Raising money when its not going to be needed it a quick cash grab. Most founders hate giving up shares in their companies because in the long run they lose juicy profits and such, but they do this because the money is needed for facilities and staff (See the startup scene around California)

Think about it. Now his share of the profits are even lower so his long term incentive to keep developing is even lower. That money is not needed to do anything.

Maybe if he spent all the 18,000 Bitcoin on becoming a fully verified and legal USD/EURO exchange?

It really depends on what you mean by trade. I am able to set up a LLC today and sell the shares to other people for investment capital. My friend has done this and its completely legal. What you are probably talking about is offering the shares to the public and you are right, doing this in most jurisdictions is illegal.

However we have the new crowdfunding law coming into effect that will hopefully allow for an easier pathway to legitimate small time public share offerings.

Sure the shares are registered, in Belize.

Ken's credibility and ActiveMining's credibility are really in limbo until November. Once we start chewing through November Ken's reaction to eASIC or lack of eASIC chips will determine his character and resolve.

Until eASIC make their move Ken cannot show his colors.

The case is not going to go in DPR's favor. Dealing drugs or facilitating such transfers are illegal in the USA. I know many of us disagree with the law but we are too tame to actually do anything about it. We elected our leaders and as such must reap what we sow.

Anyway, DPR decided to stay in the United States whilst being a drug lord and made all his money from drugs. If you think there was a moment he was acting legally please tell.

He will never get those coins back.

He knew the law and decided to run the site anyway (whilst making various huge mistakes).


You are mistaken, the FBI worked within the legal framework that DPR was fully aware of. They both played the game and the FBI won.

If they invented a law just to catch DPR then perhaps you have a point.

Damn. Most CEO's/Founders pay themselves a very small salary in a start-up, if you have no skin in the game of course it doesn't matter when the eASIC chips arrive.

This is disappointing if true, especially considering most CEO's/Founders end up owning a small part of their company (10 - 30%) but in this case Ken owns over 50%. I really hope VE is lying here. We have already lost so much money and have delayed chips, nothing more.

I will give Ken the benefit of the doubt.

See my edit, I don't think the times are based on when the node received the transaction, but the time it was included in the block.

Also if you sent a shedload of massive transactions you will find they get included very quickly. The miners still accept large Bitcoin transactions with no fee very fast.

If your transactions are small then no fee means limbo

Not sure, I think the timestamps are based on received time by the node, so I imagine if the FBI sent out 324 btc every couple of seconds, as they hit one node they might propagate closer together or further apart as they travel through the network to a mined block. And the time being recorded is the moment blockchain.info picked up the transaction (before being included in a block)

So I think its all a bit random about the times, I doubt the timestamps are indicative of the exact moment the FBI sent the coins.

I could be wrong, but I don't think the timestamps show any evidence of mining. If anyone is mining it would be the NSA.

EDIT: I'm probably wrong about the timestamps. The FBI transactions match time for time on BlockChain.info and BlockExplorer.com, so maybe they were just really fast? You might be right Stan.

Is Ken actually taking a salary from the IPO funds? Even when there is nothing for him to do until the eASIC chips arrive?

Its very easy to send a large transaction with no fee. Have a look on the blockchain, the FBI redistributed nothing.

No fees paid on moving $28,000,000. That has to be a new motto for Bitcoin!

Not embarrassing at all. I spend far too much time here its abnormal.

Good luck!

Thanks D&T. Hopefully all the current literature on exporting paper addresses follows your recommendation. Making a new address for the purpose of exporting and then sending the coins to that address is certainly the best approach. I remember reading about people losing coins because of assumptions about the software that are not clear and I hope it doesn't happen anymore. Posts like the OP remind me how little newcomers know about the system and how that can cause them financial loss if they assume the apparent workings of Bitcoin from the GUI in the client.

I would offer my captor all the ActiveMining shares I own, telling him how we are 2 weeks^tm from the eASIC delivery and they are bound to go up in value. After I transfer all the shares (I hope my captor is not from the US) I would run knowing he would come after me upon the realization the eASIC is a terrible terrible nightmare and the shares are worth nothing.

I would be happy because 1) I am alive and 2) the shares at least served a useful purpose!

Any newbies here, don't buy ActiveMining shares!

Pick your favorite:

• He gave them up.
• He had an easy password.
• His complex password was stored somewhere the FBI gained access too.
• He was key-logged.

Breaking the private key encryption is not listed for obvious reasons. (Even if the NSA was capable of breaking the key, they would not expose this ability to the FBI for a drugs case)

Is there a warning on the client yet about exporting private keys?

If you have a few Bitcoin addresses in your receive payments list and you export only those and delete the wallet file, its likely you have just deleted access to your Bitcoins and this has happened to many people. A lot of your Bitcoins end up residing in these change addresses that are hidden from the user. Remember, before exporting any amount of Bitcoin onto a paper wallet or something, check the addresses balance on blockchain.info to confirm the balance.