Bitcoin banks? Does he mean the exchanges?
No. He's talking about the MyBitcoin fiasco. Though, he's got a lot of other things confused:
When Bitcoin was launched in 2008, each Bitcoin traded at three US cents each;
With such a tempting rate, many people piled in – as many as 500,000 Bitcoins were sent to Pirate, giving a value before interest of almost $7 million entering Bitcoin Savings and trust.
The allegation that Pirate was running a Ponzi scheme dropped the value of the currency by almost 30 per cent.
