GLBSE is offline We will update our users on Saturday.

[Korbman]

...those who hold equity have not only a right but a positive duty to be aware of what is happening with GLBSE as they are jointly and severally liable for its actions.

Precisely, and unfortunately Nefario seems have severely mishandled the situation.

I do think this all could have been handled a bit better, but I also understand the situation he's in. Imagine if you were in his shoes. You're there with a handful of other members, managing them, new IPOs, finances, scam accusations, renovations to the site and existing infrastructure, and all the while working with legal and governmental agencies to establish real world legitimacy.
That's an extremely stressful and overwhelming scenario, and it doesn't help when it's your first time running a fast growing business and you're learning along the way.

Hopefully tomorrow we see some good news.

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[repentance]

...those who hold equity have not only a right but a positive duty to be aware of what is happening with GLBSE as they are jointly and severally liable for its actions.

Precisely, and unfortunately Nefario seems have severely mishandled the situation.

I do think this all could have been handled a bit better, but I also understand the situation he's in. Imagine if you were in his shoes. You're there with a handful of other members, managing them, new IPOs, finances, scam accusations, renovations to the site and existing infrastructure, and all the while working with legal and governmental agencies to establish real world legitimacy.
That's an extremely stressful and overwhelming scenario, and it doesn't help when it's your first time running a fast growing business and you're learning along the way.

Hopefully tomorrow we see some good news.

This is why ventures need proper business plans and growth needs to happen in a controlled manner - and why so many ventures fail because of their own initial success.  All of the things you listed should not be happening at one time and one person should not be responsible for managing them all.  Businesses are extremely vulnerable during growth and that vulnerability needs to be planned for.  That applies in the conventional world just as much as in the Bitcoin world.  What is slightly different is that in the Bitcoin world we're often seeing start-ups quickly become responsible for large amounts of other people's funds - because the primary "product" being demanded and offered is financial services.  This means the consequences of failure during expansion often involve the loss of other people's funds and not just those of the principals.

And yes, not just your first but every business you run has a learning curve - that's no excuse for failing to do your homework and due diligence both prior to launch and on an ongoing basis, though. 

[Korbman]

This is why ventures need proper business plans and growth needs to happen in a controlled manner - and why so many ventures fail because of their own initial success.  All of the things you listed should not be happening at one time and one person should not be responsible for managing them all.  Businesses are extremely vulnerable during growth and that vulnerability needs to be planned for.  That applies in the conventional world just as much as in the Bitcoin world.  What is slightly different is that in the Bitcoin world we're often seeing start-ups quickly become responsible for large amounts of other people's funds - because the primary "product" being demanded and offered is financial services.  This means the consequences of failure during expansion often involve the loss of other people's funds and not just those of the principals.

And yes, not just your first but every business you run has a learning curve - that's no excuse for failing to do your homework and due diligence both prior to launch and on an ongoing basis, though. 

Well stated, and I agree for the most part. Sometimes, however, even the best business plans can fall victim to random events and changes, all resulting in chaos. Sometimes the biggest challenge, and staple of a successful venture, is being able to get through it in one piece 

[Martin666]

I dont want to bash Nefario, but if it is true that he hasn't talked to a lawyer yet, that is def. not a positive sign.
Although the community might be split and many might prefer to keep the status quo of GLBSE (anonymity,...)
in my opinion the next step is to professionalize it. This means probably that Nefario has to delegate certain
responsibilities (finance, marketing & PR, Legal,...).

Interesting could be a look how governments around the world regulated similar businesses in 2nd Live (L$)
Under these circumstances I personally would not invest @the moment in GLBSE...

[repentance]

GLBSE is going to be damaged by this no matter what the reason for it being taken offline.  That damage will probably be irreparable if Saturday's "update" doesn't include full and frank disclosure of the nature of the problem which took it offline.  Let's hope that the update isn't "more info in a few day" or something similar.

[conspirosphere.tk]

I dont want to bash Nefario

I am tempted to do it, since i remember that he was confident about being beyond the law due to the nature of BTC, and so there was no risk of what is now probably happened. Now we discover that he did not ask a lawyer at the time. Talking 'bout very lax way of doing. In fact, why care? It's just our monies.

[Buffer Overflow]

GLBSE. What an amateur setup.

[piotr_n]

So the 12th page summary is: GLBSE was a scum and Nefario is going to jail... hmm...
Call ma a troll again (and don't forget to add me to your ignore list), but I just must say it: I told you so!

[Jutarul]

So GLBSE was a scum and Nefario is going to jail... hmm...
Call ma a troll again (and don't forget to add me to your ignore list), but I just must say it: I told you so!

You're jumping to conclusions. Right now all we know is that Nefario screwed up his reputation by practicing a terrible information policy.

[smoothie]

GLBSE and nefario is so fail.

[Benson Samuel]

I did a post on Banking regulations in India today.
Hope this is something that can be looked into across the world as well.

http://wp.me/P2ITcm-2R

[piotr_n]

So GLBSE was a scum and Nefario is going to jail... hmm...
Call ma a troll again (and don't forget to add me to your ignore list), but I just must say it: I told you so!

You're jumping to conclusions. Right now all we know is that Nefario screwed up his reputation by practicing a terrible information policy.

You can still see it like that, since there is a lack of information... but what I see is exactly what I had predicted: GLBSE was a highly illegal business and Nefario was just a crook working in conspiracy with other crooks... and one of them was theymos - the admin of this forum, who owned 23% of GLBSE - had anyone of you known about it?

You want to wait to find out if my conclusions are true - be my guest! Keep waiting for other explanation...
But then, at the end, I will just need to repeat again "I told you so!"

I'm, not jumping to conclusions - I were at the conclusions more than a month ago. Just did not know as many details as today...

[Puppet]

I just watched Nefario's talk here:
http://www.youtube.com/watch?v=L4iPCpmv678

It... scares me. He seems like a nice enough guy, I dont doubt his good intentions, but he is clearly in way over his head. Getting nervous to talk for like 10 people and he doesnt even know for sure what arbitrage is..?

I also think he is quite wrong thinking GLBSE operates in a legal vacuum. IANAL, particularly not a UK one specializing in finance, but what little Ive read so far suggests he is 100% wrong. Even if he's not, its incredibly dumb not having gotten legal advice yet to make sure.

This wont end well I fear :/

[LiteBit]

Still no word from any of the GLBSE operators?  No responses to this thread?  What gives guys?

[Buffer Overflow]

Every week that goes by, it becomes more and more clear that the only safe thing to do with bitcoins is to hoard them in cold storage.

But if everyone did that, there would be no transactions and bitcoin would fail.

GLBSE == Very bad for bitcoin.

[Bugpowder]

I just watched Nefario's talk here:
http://www.youtube.com/watch?v=L4iPCpmv678

It... scares me. He seems like a nice enough guy, I dont doubt his good intentions, but he is clearly in way over his head. Getting nervous to talk for like 10 people and he doesnt even know for sure what arbitrage is..?

I also think he is quite wrong thinking GLBSE operates in a legal vacuum. IANAL, particularly not a UK one specializing in finance, but what little Ive read so far suggests he is 100% wrong. Even if he's not, its incredibly dumb not having gotten legal advice yet to make sure.

This wont end well I fear :/

Oh man this bit is GREAT!

"When things go wrong you find out about how things actually work as opposed to how you thought they worked."

http://www.youtube.com/watch?v=L4iPCpmv678&t=1m40s

[Martin666]

When you watch the interview in London with Nefario you get the impression he wants to "smart out" the government. 
"we can move that anywhere almost instantly"
"if we do have problems, we can move the important stuff out off the jurisdiction, that decides that is going to crack down"
         

      Q: Are you experiencing some problems from governments from I don't know ways like Interpol
          or anything either questions asked like which you dont like.

      A: Nefario: I have had zero interest or problems with governments our largest problem has been from fraud
          particularly with assets that take to be from enormous issuers.

      Q: Ok, But what do you have some lawyers like very good lawyers or are you thinking about moving your
          company to some nice like Carribean Islands or something because i am not saying that governemnts will be
          interested in you like tomorrow or this month but i feel one day maybe in a few months they will so unless
          you have a plan and you cannot tell us or you just have some ideas that you could tell us ok i m save i have
          five passports you have no problems I would like to hear what is your plan ?

      A: Nefario: so, Ok firstly we can move *** data which is all the important part of ***, the database of accounts and transactions
          we can move out anywhere very, very quick. Its backed up in several places encrypted and than the capital on
          the market is in bitcoin, so we can move that anywhere almost instantly.
          so if we do have problems we can move the important stuff out off the jurisdiction that decides that is going to crack down
          Secondly i haven t been really taking to lawyers i kind of just went into this, but I have been talking to other people,
          and i will be getting a lawyer very soon.
      A: You should !
      Q: Yes
      A: You must
      Q: I m convinced of this now. I m tryin to put this off.
          as I hate lawyers.
 
      (Interview with Nefario, Bitcoin conference 2012 London, 25min19sec, http://www.youtube.com/watch?v=vmPD_YSQ--k&t=25m18s)

He seems to be really passionate about GLBSE and bitcoin, but it looks to me that he made the second before the first step...
         
         

[thebaron]

I think Nefario has only 32 hours from now to post an updates.

I'll hold my breath, just like I did for Pirate.

[Bugpowder]

When you watch the interview in London with Nefario you get the impression he wants to "smart out" the government. 
"we can move that anywhere almost instantly"
"if we do have problems, we can move the important stuff out off the jurisdiction, that decides that is going to crack down"
         

      Q: Are you experiencing some problems from governments from I don't know ways like Interpol
          or anything either questions asked like which you dont like.

      A: Nefario: I have had zero interest or problems with governments our largest problem has been from fraud
          particularly with assets that take to be from enormous issuers.

      Q: Ok, But what do you have some lawyers like very good lawyers or are you thinking about moving your
          company to some nice like Carribean Islands or something because i am not saying that governemnts will be
          interested in you like tomorrow or this month but i feel one day maybe in a few months they will so unless
          you have a plan and you cannot tell us or you just have some ideas that you could tell us ok i m save i have
          five passports you have no problems I would like to hear what is your plan ?

      A: Nefario: so, Ok firstly we can move *** data which is all the important part of ***, the database of accounts and transactions
          we can move out anywhere very, very quick. Its backed up in several places encrypted and than the capital on
          the market is in bitcoin, so we can move that anywhere almost instantly.
          so if we do have problems we can move the important stuff out off the jurisdiction that decides that is going to crack down
          Secondly i haven t been really taking to lawyers i kind of just went into this, but I have been talking to other people,
          and i will be getting a lawyer very soon.
      A: You should !
      Q: Yes
      A: You must
      Q: I m convinced of this now. I m tryin to put this off.
          as I hate lawyers.
 
      (Interview with Nefario, Bitcoin conference 2012 London, 25min19sec, http://www.youtube.com/watch?v=vmPD_YSQ--k&t=25m18s)

He seems to be really passionate about GLBSE and bitcoin, but it looks to me that he made the second before the first step...
         
         

Oh boy... Nefario is fucked. Truly fucked. All GLBSE partners are probably fucked too.

[rdponticelli]

I think Nefario has only 32 hours from now to post an updates.

I'll hold my breath, just like I did for Pirate.

How is that you aren't already dead of asphyxia?