[2015-06-03] IBT: Another MtGox style disaster 'waiting to happen'

[Grand_Voyageur]

Mark Karpeles: Another MtGox style disaster 'waiting to happen' if bitcoin exchanges don't adapt

Mark Karpeles, the former CEO of failed bitcoin exchange MtGox, has revealed his concerns about how cryptocurrency exchanges continue to be run.

In a blogpost titled Didn't We Learn Anything?, Karpeles suggested different ways that exchanges might be operated in order to avoid another collapse similar to that of MtGox.

Karpeles has consistently denied any wrongdoing in the disappearance of $500m (£327m, €449m)  of bitcoins from the Tokyo-based exchange in 2014, however he has conceded that he suspects someone from within the company was responsible.

Full story: http://www.ibtimes.co.uk/mark-karpeles-another-mtgox-style-disaster-waiting-happen-if-exchanges-do-not-adapt-1504173

[1713306463]

1713306463

[1713306463]

1713306463

[1713306463]

1713306463

[1713306463]

1713306463

[bryant.coleman]

No. I don't think so. Nowadays, both the exchanges, and the users are more careful. And the Mt Gox incident has taught us not to trust anyone. The exchanges such as BTC-e, Bitinstant, Bitstamp and Kraken have taken up additional security measures to prevent stealing of coins. Also, most of the users don't use exchange sites to store their coins.

BTW... why this scum Mark Karpeles is still alive?

[LiteCoinGuy]

No. I don't think so. Nowadays, both the exchanges, and the users are more careful. And the Mt Gox incident has taught us not to trust anyone. The exchanges such as BTC-e, Bitinstant, Bitstamp and Kraken have taken up additional security measures to prevent stealing of coins. Also, most of the users don't use exchange sites to store their coins.

BTW... why this scum Mark Karpeles is still alive?

i think you are way to optimistic. i guess we will see this kind of disaster again.


and it is funny when Mark says this....i guess he likes to kick his victims in the balls - again and again.


https://www.coinprices.io/articles/do-not-use-okcoin-too-many-red-flags-withdraw-your-funds-asap

[Kakmakr]

Is this coming from the fox in the hen house? He has eaten almost all the chickens and now he wants to warn us about the other fox?
You do not need a teacher to tell us that, we just have to look at these Chinese exchanges like OKCoin to know that this will happen again.
The one positive thing that did come out of this, was the FINCen regulations being applied to the US exchanges to protect the users. <<Or so they say>>

[Finchy]

No. I don't think so. Nowadays, both the exchanges, and the users are more careful. And the Mt Gox incident has taught us not to trust anyone. The exchanges such as BTC-e, Bitinstant, Bitstamp and Kraken have taken up additional security measures to prevent stealing of coins. Also, most of the users don't use exchange sites to store their coins.

BTW... why this scum Mark Karpeles is still alive?

You're still putting your faith in them to keep your coins safe when you use them. There's really nothing at all to stop them shutting up shop and running off with your money. Aren't the owners of btc-e completely anonymous? Don't be surprised if that site ever disappears or if it gets shut down for operating illegally and don't expect to get your coins refunded if it does. Until we get fully functional decentralized exchanges I wouldn't trust any exchange as any staff member of that site could easily shift coins as what likely happened at gox.

[bryant.coleman]

Aren't the owners of btc-e completely anonymous? Don't be surprised if that site ever disappears or if it gets shut down for operating illegally and don't expect to get your coins refunded if it does. Until we get fully functional decentralized exchanges I wouldn't trust any exchange as any staff member of that site could easily shift coins as what likely happened at gox.

I don't agree with your argument. The owners of BTC-e might be anonymous. But they are far more trustworthy than any of their competitors. They have been around since 2010, and no hacker have ever managed to steal from them. And we have seen what happened to Mt Gox. Its owner was not anonymous. Yet he perpetrated the biggest robbery in the history of Bitcoin.

[TraderTimm]

I'll take back every bad thing I've ever said about Mark Karpeles if another exchange duplicates the massive heist that happened under his watch.

Why is anyone listening to this idiot? Its just as bad as Cramer when he said "Lehman is FINE" the day before they went insolvent. The man has zero reputation cred, and the rep that he DOES have isn't something I'd wish on my worst enemy.

[Bad Uncle]

Of course there will be another incident. If you trust third parties with your coins then something can easily go wrong. You might be reasonably able to trust a business but do you trust every single employee they have?

[medUSA]

Karpeles is echoing ideas he gathered from the internet. Who doesn't know decentralised crypto-to-crypto exchanges are the safest? The  most difficult part of operating an exchange is the fiat-to-crypto step.

The other would be specialised in handling of fiat currencies. This would mean complying with the appropriate financial service regulations and we could easily have multiple such entities covering different parts of the world as regulations differ

That's call a "bank" and we already have them, and they don't want to deal with bitcoin because bitcoin is a threat to them. MK is paraphrasing well known ideas offering no solutions.

[Finchy]

Aren't the owners of btc-e completely anonymous? Don't be surprised if that site ever disappears or if it gets shut down for operating illegally and don't expect to get your coins refunded if it does. Until we get fully functional decentralized exchanges I wouldn't trust any exchange as any staff member of that site could easily shift coins as what likely happened at gox.

I don't agree with your argument. The owners of BTC-e might be anonymous. But they are far more trustworthy than any of their competitors. They have been around since 2010, and no hacker have ever managed to steal from them. And we have seen what happened to Mt Gox. Its owner was not anonymous. Yet he perpetrated the biggest robbery in the history of Bitcoin.

A unregulated exchange backed by anonymous people somewhere in Russia (I Think?) is more trustworthy than the licensed and insured coinbase? I have had no problems with btc-e in the past but I wouldn't put my faith in them longterm. And do you have any evidence that Karpales stole the funds? If you do you should hand that over to the police because I have yet to see any against him, but the exact same thing that happened to gox can happen to btc-e. It's likely even more possible given the fact that they're unlicensed and anonymous.

[bryant.coleman]

A unregulated exchange backed by anonymous people somewhere in Russia (I Think?) is more trustworthy than the licensed and insured coinbase?

I trust BTC-e more than Coinbase. It is purely a matter of personal choice. You can trust Coinbase or any other exchange , if you find them more trustworthy.

And do you have any evidence that Karpales stole the funds? If you do you should hand that over to the police because I have yet to see any against him

No one other than Karpeles had the private keys to the coins. So I am 99% sure that he stole the coins. His behavior after the robbery further strengthens my point.