Just finnished reading this news, well, it sounds too good to be true. It seems as if BitPay's CFO and CEO are using 'a hacker,' as a scapegoat for the loss of over $1.8 million worth of BTC.
With BitPay following similar trails as the Mt. Gox scandal, can they and their integrity truly be trusted in the foreseeable future?
Source:
Bizjournalsseeing how they been operating seemingly flawlessly since the loss for almost a year now... i think it safe to assume they will continue to provide good services.
it's not unimaginable that they could take such a loss and still be solvent, and i think it would be hard for them to practice fractional reserves banking since unlike MTGox they don't hold customer BTC very long and do next day cash settlements.
some info seguest they have patched this security hole.
everyone seems quick to call them stupid for walking into a phishing attack. I think this security hole ( trusting CEO emails ) was an oversight on a otherwise tight and secure system, being the largest in the space i can imagine there have been many hackers trying to hack it... bitpay has been around for a Long time, and this is the first hack they fell victim to.
i think their rep. has taken a hit, i trust their integrity, shit happens you live a learn..
hmm mtgox operated for months before going belly up.
I suspect there is more than what meets the eye here with bitpay.
ya but on mtgox everyone had a "BTC balance" which they keep there for trading, with bitpay BTC are sent and $$$ are sent out the next day...
If they immediately change the BTC they are sent to $ then what were they doing holding a stack of $1.8 million worth of BTC. Was their float of small change bigger than that? They must be making massive amounts of money if all $1.8 million worth of BTC belonged to them.
I can understand people don't have a Bitpay "BTC balance" for appreciable lengths of time, but there must be a lag between BTC being sent and $$$ getting sent out. People do have a sort of Bitpay "BTC balance" during that lag, and Bitpay could dip into those balances for short periods, although not to the same extent as Gox did.
You keep forgetting all the VC funding capital that's in their coffer. Even if BitPay charged 1% - which they don't - for every single transaction, they would have to process $100,000,000 worth of bitcoins to earn $1M. I know it. You know it. BitPay knows it. And, the VCers know it. Yet, the latter invested tens of millions into the endeavor for what exactly? An ROI? An ROI on what, to echo - exactly? Somebody lost over $1.8M, and if not BitPay's customers or VC moneys, then where did the moneys come from that was lost? It wasn't from remittance for services rendered because, again, at a 1% fee, close to $200M worth of bitcoins would've had to change hands to amass the hack amount in their coffer, and that's if nary a satoshi were used for overhead during the past several years. Think about it!
