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4481  Economy / Scam Accusations / Re: Vanity wallet SCAM Move FUNDS ASAP on: March 27, 2014, 01:58:27 AM
Oh, my bad, I thought that you guys wouldn't be stupid enough to let other people generate your keys directly for you. My mistake. What idiot pays someone else that has a copy of their private key?

Well yes i will agree that we were stupid but than u can't thrust this site eather https://www.bitaddress.org , right ? U can't thrust nobody, vanaty pool was well known, they were supposed to be legit, AND NOT STORE keys, that should be java, and have no memory but well.....
You can trust bitaddress.org. It's open source, so you're free to look at the code if you wish, unlike the place that charged you money to take your money (the vanity address website).

Also, you can run bitaddress.org as a single html file offline on a linux USB so that you know that nobody is stealing your coins and you're safe from malware. bitaddress.org is a much more preferrable alternative to having someone else give you a private key and saying "I promise I won't take your money". I've been using it for cold storage wallets for a year now.

Well tnx alot, but i don't have anything to store now. Irony ! Well expensive lesson learned !
4482  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 27, 2014, 01:28:48 AM
This is whole scam. I don't trust them. Sorry. They should close their business and return all stollen coins.

They did close business now , that its to late. But my 0.4 btc is GONE! And they won't be paying back that . Now i am screwed Sad .

Where do you live that losing 230ish USD is a life-altering event?

Serbia, that is more than monthly pay here, and i am student saving up for scholarship. It is huge to me , worked 2 months for it .

I know i won't get any donations now but doesn't cost anything to try, i got donation of 0.1 btc from pd. 0.3 to go... I hope i make it back till the half of next month Sad .
My donation addy if anybody cares: 1GyDQ3npFsa72Ute6bXm3wen7U1GEFfpF4

When that reach 0.55 btc i am back where i was before this scam. I had 0.15 btc on that addy and 0.4 on that vanity. OH i wish i transferred it all to that other addy Sad .
4483  Economy / Scam Accusations / Re: Vanity wallet SCAM Move FUNDS ASAP on: March 27, 2014, 01:08:40 AM
Oh, my bad, I thought that you guys wouldn't be stupid enough to let other people generate your keys directly for you. My mistake. What idiot pays someone else that has a copy of their private key?

Don't be stupid, the keys are made piecewise so that YOU are the only person with they key. I have been using a key from them and I have no problem with it, talk to ThePiachu, he runs the site. If somebody stole money from you it's entirely your fault.

Jeez, stupid this, idiot that. You're real helpful bud, maybe go ahead and bark at some dogs while you're at it

Well he is right. But if u can't thrust nobody then we can't thrust web wallets, or any other wallet , or anything... I can't get over it ... Sad .
4484  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 27, 2014, 01:06:50 AM
This is whole scam. I don't trust them. Sorry. They should close their business and return all stollen coins.

They did close business now , that its to late. But my 0.4 btc is GONE! And they won't be paying back that . Now i am screwed Sad .
4485  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 27, 2014, 12:54:36 AM
AHha... Rely ? That is wonderful. WHos fault is we lost balances ? I don't care about 0.003 i paid for it. It was urs responsibility to provide SECURE keys like u say on ur site . Nvm as far i am concerned , u may not even be hacked. For 3 months not to notice change in ur own code its ridiculous. Now will be refunding what we paid for them , but not balance that was on them.... Hahahaha.... Great.

Well let's be honest - there aren't many people nice enough in the world to refund 10K of losses unless your a bigtime player or a big business. There are really just two scenarios:

a) Not hacked, instead maliciously edited code to steal coins. Then logic tells you that he would never refund your losses, but possibly only the cost of the addresses themselves in order to maintain some respectability for his account
b) Hacked, and refunding because it's the least he could do. Still can't give you a full refund because he doesn't have the funds necessary to cover it.

Both cases make sense with his actions so you can't really tell. The lesson to be learned with all of this is that is your going to make addresses do so yourself and don't trust it to any external party at all.

I just don't get how they did not notice that code . And also, how theirs money we paid them also got stolen ? Don't tell me that it was on address made after 13 dec, and also vanaty . If u only know how much i regret making that . Lost all money i saved up for scholarship in 2+ month. So many scammers in this fcn world.
4486  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 27, 2014, 12:25:32 AM
Just to be clear I mean we will refund cost of Addresses as they are now useless if you used the calckey page.

AHha... Rely ? That is wonderful. WHos fault is we lost balances ? I don't care about 0.003 i paid for it. It was urs responsibility to provide SECURE keys like u say on ur site . Nvm as far i am concerned , u may not even be hacked. For 3 months not to notice change in ur own code its ridiculous. Now will be refunding what we paid for them , but not balance that was on them.... Hahahaha.... Great.
4487  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 26, 2014, 11:56:37 PM
We have emailed all users who we had an address for to mitigate any damage as much as we can.


Well yes i got email. And if u guys rely going to even try to refund, that is for respect . And i take back all i said about u guys scamming. Will delete that post till further notice.

How do i request refund ?

My addy that i been taken 0.4 btc from is : 1microLtvk1LzFzdbBeoWz9pBfXkP26yJ
Tx: https://blockchain.info/tx/9e95fd443621d3d9fc150f290144401feb1627573c9161beb08edb472069a819

Is that enough ?

Ah well and my address where refund should go : 1GyDQ3npFsa72Ute6bXm3wen7U1GEFfpF4

I did not expect this from u guys if u pull this off will be rely amazing. Tnx.


Wait wait wait, do they mean we only get refund what we paid for address to be made or what we are stolen Huh
4488  Economy / Service Announcements / Re: [ANN] Free Bitcoin Vanity Address Generation Website. on: March 26, 2014, 11:19:40 PM
We have found hack. They hacked the calckey page and posted keys to:
http://192.241.136.248

So if you calculated you private key using bitaddress.org like suggested in the help page you should to the best of our knowledge be OK.

But if you calc'd the private key using our calckey page they KNOW your private key (we do not though).

Looking at the date on the file they did it on the 31st Dec 2013.

We are still investigating.

We have decided to shut the site down as only ran it for fun - and now it is no fun!


Well tnx guys rely i paid for addy and u guys did not even checked code for 3 months rely ? 
Anyways i lost all coins i had , coz they all been stored on that address 0.4 btc i worked 2 months for. Rely tnx guys.
4489  Economy / Scam Accusations / Re: Vanity wallet SCAM Move FUNDS ASAP on: March 26, 2014, 09:11:12 PM
Oh, my bad, I thought that you guys wouldn't be stupid enough to let other people generate your keys directly for you. My mistake. What idiot pays someone else that has a copy of their private key?

Well yes i will agree that we were stupid but than u can't thrust this site eather https://www.bitaddress.org , right ? U can't thrust nobody, vanaty pool was well known, they were supposed to be legit, AND NOT STORE keys, that should be java, and have no memory but well.....
4490  Economy / Scam Accusations / Re: Dangerous Vanity wallets on: March 26, 2014, 06:15:14 PM
Don't be stupid, the keys are made piecewise so that YOU are the only person with they key. I have been using a key from them and I have no problem with it, talk to ThePiachu, he runs the site. If somebody stole money from you it's entirely your fault.

ALL ADRESSES ON THAT LIST ARE VANATY ADDRESSES MADE ON THAT SITE !

My other addyes are untouched on same wallet, i have backup and private keys for all of them in same place , if somebody hacked ME , he would get all my balance , not ONLY form that vanaty addy .

Sad thing is i had 90% of money on that address .
4491  Economy / Scam Accusations / Re: Dangerous Vanity wallets on: March 26, 2014, 05:09:35 PM
I LOST MONEY THE SAME WAY !!! IN THAT TRANSACTION !!! ALL I HAD !!!

WHo ever made addresss on that site https://bitcoinvanity.appspot.com/ MOVE UR MONEY FROM IT ASAP!!!!
4492  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 02:31:51 PM
New Binary Options Trading Service Takes Bitcoin-Only Payments
Jon Matonis (@jonmatonis) | Published on March 26, 2014 at 14:15 GMT | Bitcoin protocol, Investors, News, Prices

A new service for financial options has launched a beta website for nine different binary options, including gold, silver and crude oil, plus six foreign exchange pairs.

The offered currencies – euros, Australian dollars, New Zealand dollars, British pounds, yen, and Swiss francs – are all paired with the US dollar.

Different than previous binary option offerings, the new service – which is called UpDown – processes payments and payouts in bitcoin only.

With binary options, the trader selects the direction that the price of the underlying asset will move – either up (‘call option’) or down (‘put option’) – and purchases an option contract. This contract gives the buyer the right to exercise the option at the end of the specified time period, at which point the trader makes a return or loses the initial investment.

Binary options are sometimes referred to as ‘all-or-nothing options’, ‘digital options’, or ‘fixed return options’ (FROs), which are traded on the American Stock Exchange.

More popular outside the US, foreign binary options are offered by individual brokers, rather than through an exchange, and they typically have a fixed payout and risk. The brokers earn their revenue from the percentage discrepancy between what they pay out on winning trades and what they collect from losing trades.

Most foreign binary options brokers are not legally allowed to solicit US residents unless that broker is registered with a US regulatory body, such as the Securities and Exchange Commission or the Commodities Futures Trading Commission.

First-generation brokers

First-generation binary options for bitcoin simply offer the BTC/USD currency pair as a trading vehicle, whereas second-generation operators also allow deposits and payouts in bitcoin. Coindesk first covered first-generation bitcoin binary options in June 2013.

Now, binary option brokers that trade bitcoin as an option instrument include anyoption, SetOption, TradeRush, and Bloombex-Options.

Fast and simple, the tradeable asset lists are extensive with durations of 60 seconds to one week. Payouts range between 60% to 85%, depending on the asset and option type. Top brokers will also provide news resources and trading tools.

Second-generation brokers

Second-generation brokers offering both bitcoin funding and bitcoin trading include UpDown, BTCOracle, and BeastOptions.

The first such trading service operating on the bitcoin block chain, Satoshi Option, debuted in March 2013.

Similar to the SatoshiDice betting game, Satoshi Option requires no account registration and no personal details. Payouts are near instantaneous and the service is accessible from anywhere in the world because it relies on the bitcoin block chain as the platform.

Maximum trade size per bitcoin address is currently set at 0.25 BTC. Since the available commodities are traded with publicly available pricing, the binary option outcomes are verifiable.

Unlike the other bitcoin-funded brokers that rely on proprietary platforms, BeastOptions operates on the third-party TRADOLOGIC trading platform, which provides a customizable front end that is a lightweight, high-performance solution for web-based or mobile platform trading.

Several binary option trading platforms exist and SpotOption, TRADOLOGIC’s biggest competitor, has been offering bitcoin binary options since mid-2013. Leverate‘s new platform also includes support for bitcoin binary options and CFDs, which is utilized by Plus500 and TopOption.

Contracts for difference, or CFDs, differ from binary options in that they allow the use of leverage and the contract can be closed at any time, whereas binary options have a fixed expiry. Counterparty risk is a concern for both instruments, which is what the very short-term binary options utilizing the bitcoin block chain seek to alleviate.

UpDown will soon be adding a BTC/USD trading pair to its binary option asset list after it negotiates an exchange partnership. UpDown refers to itself as a community-regulated project and is registered in the British Virgin Islands.
4493  Economy / Services / Re: [PrimeDice] [Highest Paid Signature] Earn up to 2.4 BTC/Month by Posting on: March 26, 2014, 02:11:48 PM
Stunna Changes rate and and its again touching most highest rates great by you stunna I want to join you but need some time  Sad

I guess its easyer to him to change rates than that "highest paid signature" in thread name Cheesy  hahahah... That is awesome .
4494  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 02:05:47 PM
Circle Receives $17m Funding, Unveils Exchange and Wallet Service
Emily Spaven (@emilyspaven) | Published on March 26, 2014 at 13:00 GMT | Circle, Companies, Exchanges, Wallets

Circle Internet Financial has closed a $17m Series B funding round and announced the launch of its first consumer product.

The bitcoin company raised the $17m from various investors, including Breyer Capital, Accel Partners and General Catalyst Partners, bringing its total funding to date to $26m.

Investment was also received from Oak Investment Partners, Pantera Capital and the Bitcoin Opportunity Fund, which is run by Barry Silbert, founder and chief executive officer of SecondMarket and founder of the Bitcoin Investment Trust.

Leonard H. Schrank, the former chief executive officer of SWIFT (Society for Worldwide Interbank Financial Telecommunication) also invested, as did Circle board member M. Michele Burns and Fenway Summer, a consumer finance advisory and venture firm led by Circle board member Raj Date.

Jeremy Allaire, Circle founder, Chairman and CEO, said:

“We are thrilled to have such a strong showing of support and vote of confidence from world-class investors and strategic individuals as we move into the commercial phase of Circle.”

He explained the funding will allow Circle to build its team, increasing roles across product, operations, legal, compliance, security and customer support. Allaire also has plans to open offices in a number of locations outside the US.

On top of this, the funds will be used to invest in the infrastructure required to provide a secure platform for the company’s customers.

Product debut

Up until now, Circle has been very secretive about what it has been working on and the products it aims to offer. Today, the company has launched its first consumer product, but only a limited number of people will be able to test it out at this stage.

Allaire revealed his company is offering something akin to a bitcoin exchange and wallet service, although he is loath to use those terms.

Jeremy Allaire, Circle
Jeremy Allaire, founder, chairman and chief executive officer at Circle
He said users will be able to use the service to convert their fiat currency into bitcoins, then take advantage of tools that make it easy to send, receive and spend funds.

The company’s main aim is to open bitcoin up to a broader market and make it easier for the masses to get involved in digital currency. Circle wants to make sure the service it offers is perfect, though, before making it available to all.

“We are being very careful and deliberate in how we add users to our system, ensuring that it is a product that users value and recommend to their friends and family, and that, from an operational perspective, we are able to deliver an exceptional experience,” said Allaire.

He explained that his company is building a global consumer financial service and institution that it wants consumers to trust with protecting and securing their digital assets. This is something Allaire claims the vast majority of bitcoin companies have failed to do:

“They’ve failed to meet consumer support expectations, they’ve failed to meet even rudimentary security and audit obligations, and so we believe that the bar needs to be high in terms of offering a consumer service around bringing bitcoin mainstream.”

For this reason, Circle is being patient and is launching an invitation-only limited release this week.

Working with regulators

Allaire, who has founded two previous startups that both saw successful IPOs, said Circle hasn’t so far faced any problems with regulators or banking partners. He puts this down to Circle’s upfront approach.

“Unlike many first-generation bitcoin companies, we’ve been extremely engaged and transparent with regulators about our commercial and product plans,” he explained.

He believes it is important for companies in the space to educate government and commercial banking partners about what they are doing, and also integrate any feedback and suggestions.

“We’re all in this and learning together, and it’s critical that industry participants look at government and the banking industry as partners in building the ecosystem for digital currency,” Allaire added.

Investment

Circle isn’t the only bitcoin company to announce investment this week. Yesterday, Kraken announced it had received $5m in Series-A funding, led by Hummingbird Ventures.

Kraken, which allows users to buy and sell bitcoin, namecoin, dogecoin and Ripple, among other digital currencies, is owned by Payward, Inc.

Other companies in the space are expected to make funding announcements this week, too.
4495  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 02:05:12 PM
Cryptocurrency Payment Processor GoCoin Gets $1.5m in Funding
Daniel Cawrey (@danielcawrey) | Published on March 26, 2014 at 13:27 GMT | Companies, Investors, Merchants, News, Startups

GoCoin has announced it has raised $1.5m in funding in order to expand its operations as an international payments platform for cryptocurrencies.

The round was led by the Bitcoin Shop, which is a publicly traded company on the over-the-counter market.

“Our investment in GoCoin reflects our confidence in their product and their team,” Charles Allen, CEO of Bitcoin Shop, said in a statement.

Former Facebook COO Owen Van Natta and investment firm Crypto Currency Partners also participated in the round.

“User demand continues to grow for alternative payments,” said Van Natta, adding:

“I’m excited to deepen my involvement with GoCoin and their best-in-class payments solution for merchants and game publishers.”

Expansion and competition

GoCoin plans to use the funding to expand its sales and technology teams as demand for cryptocurrency payments grows.

“In our case, it’s expanding the sales staff in terms of direct sales and channel sales. And we’ll probably augment the technology team slightly,” said company co-founder Brock Pierce.

The company was started in July 2013 and its platform went live in December.

GoCoin competes with Coinbase and BitPay in the bitcoin payment processor market. Pierce believes that GoCoin is the number three cryptocurrency payment processor in the world today. The industry will see a lot more competition in the future, he says:

“My view is that there is probably room in this market for 15 of these companies.  If you look historically in payments world, you normally see room for 15 of these types of companies.”

International focus

A favorable regulatory environment in Singapore led GoCoin to incorporate its business there. And it is focused on markets outside of the US.

“I think we’re the only payments company that’s focused on international markets,” said Pierce.

The demand for alternative cryptocurrencies as a form of payment outside bitcoin is also something that makes GoCoin stand out as a payment process. Said Pierce:

“We’re agnostic when it comes to currencies. If there’s mutual demand from merchants and consumers to either spend or accept it, we’ll add the currency.”

GoCoin started to accept litecoin back in January. It recently added support for dogecoin as well.

“We’ve had an international multi-currency focus since day one, and this round will help extend our global footprint and take our services to the next level,” Steve Beauregard, CEO of GoCoin, said in a release announcing this latest round of funding.

Last November, GoCoin raised $550,000 in an early seed round.
4496  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 02:04:41 PM
Agora Commodities Reports $10m in Bitcoin Sales
Nermin Hajdarbegovic | Published on March 26, 2014 at 12:35 GMT | Investors, Merchants, News, Wallets

Agora Commodities has managed to sell more than $10m-worth of gold and silver for bitcoin since it started accepting the cryptocurrency last year.

The firm points out that bitcoin gained more than 4000% in value last year, although that’s not the company’s primary focus, which is more on shiny, tangible commodities rather than digital currencies.

The biggest rush came in late 2013, as the price of bitcoin skyrocketed. Clearly, there were many speculators who decided to trade in their bitcoins for precious metals.

Just getting started

Agora Commodities is a relatively young company, but it is already the biggest dealer of precious metals for bitcoin on the planet. In addition to gold and silver, the company also sells platinum, palladium and rhodium.

The company sells a wide range of products, ranging from 1 kg gold bars priced at $43,000, to one-ounce silver coins priced at $21.

Bitcoin lovers can even combine their love of cryptocurrencies and precious metals with Agora’s Silver Bitcoin Specie, a quarter-bitcoin piece priced at $23.50. No bitcoin included, of course. It features a handy QR code on the back and the design is rather nice, especially the binary string on the margin.

The only problem is that international shipping is quite costly, increasing the price of the purchase significantly. So, unless you plan to make a substantial investment in precious metals, it may not be worthwhile – especially if you were thinking about picking up a single coin as a gift, or a geeky conversation piece.

Coins as BTC wallets

If all this talk of physical coins sounds familiar, don’t worry, it should. Mike Caldwell, the entrepreneur behind Casascius has been minting physical bitcoins for a while. However, his efforts were curtailed last year, when the US Financial Crimes Enforcement Network (FinCEN) ruled that his activities were essentially ‘money transmitting’ and that he did not have a permit to carry out such services.

Caldwell then turned to minting unfunded coins, which feature private keys and can be stocked with BTC by the buyer. Caldwell describes them as “paper bitcoin wallets inside a coin container”.

While physical coins aren’t very practical, and they are essentially the opposite of what a digital currency was intended to be, they do look quite a bit more appealing (and durable) than your average paper wallet.
4497  Economy / Gambling / Re: PrimeDice.com | 500M+ Bets | 300k+ BTC Wagered | Free BTC | 1% Edge | Instant on: March 26, 2014, 01:52:48 PM
What date can i Join?

Yes u can join whenever u want. U only need 50 posts before 17.
I will now check that topic , coz i avoid it only post my count there, i hate how people spam that topic. That should be only for post counts .

WOW that are nice rates Smiley . I am still at 0.0001 btc but will be up there soon Smiley .
Jezzz 0.0005-0.0007 is HUGE !
4498  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 12:05:26 PM
New Polish Bitcoin Exchange Bitmarket.pl is Launched
Jaroslaw Adamowski | Published on March 26, 2014 at 11:55 GMT | Exchanges, News, Startups

With digital currencies becoming increasingly popular among Poles, a new bitcoin exchange, Bitmarket.pl, was launched this month in the country.

The company said the exchange aims to lure traders with high levels of security and a fast turnover of transactions.

Said Michał Pleban, co-owner of the exchange:

“What is important, only our own funds are allocated in the hot wallet, while our clients’ funds are safe in the cold wallet. We merge the rapidness of a currency exchange with the elasticity of a stock exchange.”

Pleban presented the exchange and its business model at a seminar on bitcoin, held on 24th March at the Warsaw School of Economics (Szkoła Główna Handlowa).

From domains to bitcoins

“The exchange was launched this month, but we represent a company which has been active on the Polish market for eight years,” Pleban said. “We are an offshoot of AfterMarket.pl – the largest domain aftermarket website in Poland, with more than 250,000 .pl domains in its portfolio.”

Pleban is the main architect of the website’s code, and said that the security measures employed by Bitmarket.pl are multilayered and based on two-step authentication, but do not negatively impact the speed of transactions.

Said Pleban:

“In addition to this, we decided not to impose any fees on users’ transactions on the exchange.”

That said, the company does collects fees for withdrawals of funds from user accounts. These are currently PLN 1 ($0.33) and PLN 5 ($1.65) for electronic fund transfers and regular bank transfers, respectively, and 0.0001 BTC and 0.001 LTC for digital currency transfers, according to data from Bitmarket.pl.

Trust-building essential

With Pleban’s statements clearly aimed to garner the trust of the local digital currency scene, which has seen several bitcoin-related incidents over the past few months, local observers say that market entry is increasingly difficult for new Polish exchanges.

As part of its trust-building efforts, Bitmarket.pl has tried to emphasize its financial foundations. The exchange is owned by Luxembourg-based EuroDNS, which has a share capital of some €540,000, according to figures released by company representatives.

Recent examples of turbulence in Poland’s bitcoin market include Bitcurex, the country’s leading bitcoin exchange, temporarily shutting down its site on 14th March following a hack that targeted funds in its users’ bitcoin wallets. The site resumed service on 18th March after stating that the perpetrators did not manage to break its security measures and gain full access to its operational hot wallet.

Late last year, though, another Poland-based bitcoin exchange reportedly fell victim to a hack and its owners were forced to shut down the site. Bidextreme.pl was hacked in November 2013 and its customers’ bitcoin and litecoin wallets were emptied.
4499  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 10:44:10 AM
Rumours, Panic and a DDoS Attack: Huobi’s Wild Week
Jon Southurst (@southtopia) | Published on March 26, 2014 at 10:30 GMT | Altcoins, Companies, Exchanges, Litecoin, News

While everyone was preoccupied with bitcoin price drops after last Friday’s ‘fake Chinese bitcoin ban‘ news incident, something even more dramatic was happening at China’s largest exchange, Huobi, and its new litecoin trading system.

A ‘flash crash’ on the exchange saw the price plunge to just 1 RMB (Chinese yuan) a short time after a hoax news report of a complete government ban on digital currencies was posted on microblogging site Sina Weibo and reported by Sina’s financial news service.

The number of trades executed at that price is unknown, as is the total amount of money lost – either by the company or by traders who lost due to margin calls. However, soon after the incident, Huobi agreed to make its customers whole again at 70 RMB ($11.29) per LTC for anyone who sold below that level.

Furthermore, the company said, negative balances would be reset to zero – even those still in the red after the 70 RMB redress.

Huobi CEO Leon Li said litecoin volumes had recovered by about 80% since, and users seemed to be satisfied with Huobi’s resolution, but predicted that the full 100% recovery would more time.

This incident was very similar to the bitcoin flash crash at BTC-e on 10th February, supposedly induced by panic in the aftermath of Mt. Gox’s suspension of all withdrawals. The price of 1 BTC dropped to $100 for just under two minutes, but that was long enough to do damage.

DDoS attack

That wasn’t the end of Huobi’s wild week, however. On Sunday 23rd March, the exchange suffered a crippling distributed denial of service (DDoS) attack that took its site offline for the whole day.

News outside China has been almost non-existent, causing internet sleuths to speculate over whether, if at all, these incidents were related and who might be behind them. Prankers? Blackmailers? Business rivals? Huobi itself? Even Huobi management says it doesn’t know for sure, but it insists, as did BTC-e in February, that it did not engineer the crash or profit from it.

Huobi had officially started litecoin trading just two days prior to the crash, and prices had not been spectacular over that time. While LTC had crept higher against BTC and USD in anticipation, actual figures after the launch were underwhelming.

Since the crash, the price has not risen above its pre-Huobi launch level and, on BTC-e, one litecoin is currently trading for around 0.027 BTC, $15.80, and 98.4 RMB, which is almost exactly the same rate.


Blackmail trend

There have been some other high-profile DDoS attacks in recent weeks, said to be the result of blackmail attempts. Project management site Basecamp (formerly named 37signals) went down just yesterday in what its owners said was an extortion attempt, while Meetup was also taken down a couple of weeks ago after receiving an email saying:

“A competitor asked me to perform a DDoS attack on your website. I can stop the attack for $300 USD. Let me know if you are interested in my offer.”

Even if these DDoS incidents are completely unrelated, they point to a recent trend in computer crime: extortion of both businesses and individuals has lately increased, either via overt threats like the one Meetup received or malware like CryptoLocker, which demanded similar amounts from its victims.

Response to the crisis

Comparing its fate to that of BTC-e, Huobi has published an official response (in Chinese) to the fake news and subsequent crash on its site.

“The system was told to sell at market price, but there were not enough LTC buyers, and transactions could not be completed, so finally the inventory was liquidated at below market prices. When the liquidated LTC was not sufficient to cover borrowings, some small portion of customers experienced a negative asset balance.”

“Huobi only opened up LTC trading two days before the 21st March incident, and so there was not enough depth in the market. In the midst of a market panic, there were not many orders that varied greatly from the market price, and so the system could not close positions using normal prices, and it was only when that the price went down to 1 RMB that the position could be closed.”

Engineering the crash itself would make no sense for the company, the statement continued, since both buyers and sellers were Huobi customers, and the crash did great damage to the company’s brand new LTC trading platform and its reputation in general.

When asked who might have been behind the fake government ban announcement, Li told CoinDesk:

“The fake news was most likely a result of an individual/group maliciously manipulating the price and causing a drop on purpose. They were able to get away with it because people are concerned about the uncertainty in policy.”

“To prevent such things from happening in the future, three things need to happen: 1) established media should not publish unverified news about policy; 2) investors need to have basic judgment; 3) the industry should have an authoritative channel for posting news.”

Getting traders to act rationally would be an achievement, and is something markets have probably desired for hundreds of years. Controlling media statements on government policy, though, could be easier in China with its vast state-connected media networks.

Taking further action

Huobi is calling for Sina Weibo (a similar service to Twitter) to reveal the owner and Chinese ID number of the ‘Caitongshe’ account that started the fake rumor in the first place, in the hope it can file a lawsuit.

It is also requesting that any users who bought litecoin for 1 RMB to post pictures of their trades on Weibo (as some have done already). The trades were legal and within the rules, but Huobi wants to demonstrate publicly that the company did not trade at the low price or profit from the crash.

Huobi also insisted that its bitcoin platform remained robust, and did not suffer large setbacks even after the official Chinese government announcement of 5th December, or the fake one of last Friday.

Admitting its risk management strategy for the new litecoin system could have been better, however, Huobi promised improvements to prevent wild fluctuations in future.

To be properly responsible to its customers, the company concluded, after a meeting with all stockholders, Huobi has agreed to use a portion of its loan loss provision funds to cover losses suffered by the exchange’s users.
4500  Bitcoin / Bitcoin Discussion / Re: BITCOIN NEWS EVRYDAY! From multiple sources. on: March 26, 2014, 10:42:40 AM
Today in Gox: Police on the Case, More Coin Rumors
Jon Southurst (@southtopia) | Published on March 26, 2014 at 09:40 GMT | Exchanges, Mt. Gox, News

Mt. Gox rose again today to announce it is now working with Japanese police to investigate what happened to the bitcoins it lost, misplaced, or had stolen by hackers.

The statement, posted on the homepage on letterhead bearing CEO Mark Karpeles’ name, said:

Following its application for commencement of civil rehabilitation, MtGox Co., Ltd. consulted with the metropolitan police department with regard to the disappearance of bitcoins which is one of the causes for said application. MtGox Co., Ltd. hereby announces that it has submitted necessary electronic records and other related documents.

MtGox Co., Ltd. intends to fully cooperate with each competent authority. Further, MtGox Co., Ltd. continues to make efforts to clarify facts as quickly as possible and to recover from damages.

The announcement is carefully worded, not mentioning whether Mt. Gox chose to consult with the police, whether the police came to Mt. Gox, or if it was just a routine matter as part of the civil rehabilitation process. According to a report by Reuters, the police do not intend to make any further statement on the matter.

Other than knowing the authorities are involved somehow, and the words “recover from damages” at the end, the update probably does little to comfort those who lost large sums of money when Mt. Gox declared bankruptcy nearly a month ago.

Rumor file

Another tiny ray of hope today came in the form of a tweet by Eren Canarslan, an investment banker from Turkey:

The one-off tweet, followed by nearly a whole day of radio silence (that as of press time still hadn’t been broken) probably would have been written off as trolling or wishful thinking had it not been for these two other cryptic tweets he’d posted on 4th and 5th March:

Within two weeks, Mt. Gox announced it had discovered 200,000 BTC in an ‘old format’ wallet. In the world of lost bitcoins, this has bestowed a kind of prophetic status on Eren Canarslan, whose bitcoin-associated follower count increased markedly over the day.

It has not yet been established what his connection is to Mark Karpeles, Blockchain, or any insider information. The 4th March post drew a bemused response from ZeroBlock, Blockchain’s subsidiary.

It has also raised interest in the company he was supposedly tweeting to, Hong Kong’s Patrona Partners. That company responded by tweeting “Only thing I know he is not trolling,” with a link to an image of Canarslan’s earlier post.

We await, like a flock of seagulls around a small child, the next morsel either Mt. Gox or its claimed ‘insiders’ toss in our direction.
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