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Author Topic: BitPay's integrity. Can they be trusted? What's next?  (Read 1143 times)
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September 19, 2015, 02:17:31 AM
 #1

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: Bizjournals

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September 19, 2015, 02:24:57 AM
 #2

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: Bizjournals

No... Well they shouldn't be atleast imo...

When you're dealing with millions of dollars with peoples money (or cryptos for that matter) you should be a little more secure than using your companies email address to sign up for some random thing you received from a random person.. That's just completely ignorant. I'm sure someone else will fill BitPay's void in a couple of weeks/month max.

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September 19, 2015, 02:35:04 AM
 #3

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: Bizjournals

No... Well they shouldn't be atleast imo...

When you're dealing with millions of dollars with peoples money (or cryptos for that matter) you should be a little more secure than using your companies email address to sign up for some random thing you received from a random person.. That's just completely ignorant. I'm sure someone else will fill BitPay's void in a couple of weeks/month max.

Everyone should decide for themselves.

I personally do not trust them given the fact that they did not have multi-sig in place to hold each party involved for large (even medium) size transactions.

$1.8 million transfer warrants a first class ticket to any place on planet earth where your CEO and/or CFO and other important people are to verify those types of transactions FACE TO FACE.

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September 19, 2015, 02:42:39 AM
 #4


Everyone should decide for themselves.

I personally do not trust them given the fact that they did not have multi-sig in place to hold each party involved for large (even medium) size transactions.

$1.8 million transfer warrants a first class ticket to any place on planet earth where your CEO and/or CFO and other important people are to verify those types of transactions FACE TO FACE.

Well honestly, I think a majority of users (I wouldn't be one of them) will think the same way we're thinking right now.  It's just a shame to see a US southeast company like BitPay to go down hard like this due to a thick headed move; just because the southeast is where I reside... I guess that's a stupid reason for me to be sad about this, but I love my area of domain... good fried chicken and sweet tea here Tongue

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September 19, 2015, 02:48:10 AM
 #5

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: Bizjournals

seeing 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, but I'd still trust their integrity, shit happens you live a learn..

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September 19, 2015, 02:48:25 AM
 #6


With BitPay following similar trails as the Mt. Gox scandal, can they and their integrity truly be trusted in the foreseeable future?


The big issue here is because BitPay is a payment procesor. Many companies accept Bitcoin through them. Mt. Gox was "just" an exchange.

BTW, how big is this lost compared to the size of BitPay?
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September 19, 2015, 02:50:44 AM
 #7

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: Bizjournals

seeing 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.


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September 19, 2015, 02:52:45 AM
 #8

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: Bizjournals

seeing 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...

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September 19, 2015, 02:54:37 AM
 #9


With BitPay following similar trails as the Mt. Gox scandal, can they and their integrity truly be trusted in the foreseeable future?


The big issue here is because BitPay is a payment procesor. Many companies accept Bitcoin through them. Mt. Gox was "just" an exchange.

BTW, how big is this lost compared to the size of BitPay?

Can they legally "burn" some of their investment capital (money invested in the company) to temporarily cover the loses?

FYI: We are planning a fun, harmless "10% Attack" on the ETH/ICO Bubble Game.
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September 19, 2015, 02:58:03 AM
 #10


With BitPay following similar trails as the Mt. Gox scandal, can they and their integrity truly be trusted in the foreseeable future?


The big issue here is because BitPay is a payment procesor. Many companies accept Bitcoin through them. Mt. Gox was "just" an exchange.

BTW, how big is this lost compared to the size of BitPay?

Can they legally "burn" some of their investment capital (money invested in the company) to temporarily cover the loses?

maybe they begged second market to buy another 5KBTC for real this time  Cheesy

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September 19, 2015, 03:09:34 AM
 #11

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: Bizjournals
BitPay is done for. How reliable can be company when CEO alone could lose all funds and blame it on the hackers?
Even if there were real hacking attempt it is not excuse and even more reason to worry. Company with such history is a failure on the market and it won't live long imo.
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September 19, 2015, 05:25:01 AM
 #12


With BitPay following similar trails as the Mt. Gox scandal, can they and their integrity truly be trusted in the foreseeable future?


The big issue here is because BitPay is a payment procesor. Many companies accept Bitcoin through them. Mt. Gox was "just" an exchange.

BTW, how big is this lost compared to the size of BitPay?

Can they legally "burn" some of their investment capital (money invested in the company) to temporarily cover the loses?

In the legal and the countable parts I don't know, but without angry the investors? I doubt.
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September 19, 2015, 06:47:14 AM
 #13

They are going to take a huge knock on this one, and I doubt any of them will be held accountable for their actions. It's just too easy to blame a hacker.

The "BitPay" incident would have a ripple affect, like what happened after the "MtGox" hack... Governments will react to protect the consumers and they will regulate

Bitcoin payment processors with strict regulations and licenses.  Angry You just wait and see.... 

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September 19, 2015, 08:13:04 AM
 #14

Most likely it will. People will start to see things different  based on the explanation given on how they lost their coins. bitcoiners nowadays are also very concerned about security more than anything else.

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September 19, 2015, 08:19:04 AM
 #15

no this is absolutely wrong.no way to hack.
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September 19, 2015, 08:49:04 AM
 #16

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: Bizjournals
BitPay is done for. How reliable can be company when CEO alone could lose all funds and blame it on the hackers?
Even if there were real hacking attempt it is not excuse and even more reason to worry. Company with such history is a failure on the market and it won't live long imo.
It is down to the flaw of their system. The CEO alone can drive the collapse of the company. How could we still trust them?
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September 19, 2015, 09:17:10 AM
 #17

Did any customers lose money?
Was any customer data leaked?

If both questions are answered with No, than there is no real problem. Companies lose money all the time, e.g. when a customer goes bankrupt and can't pay their bills. Companies have to calculate risk into their finances, so they can handle such incidents.

https://forum.bitcoin.com/
New censorship-free forum by Roger Ver. Try it out.
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September 19, 2015, 03:43:24 PM
 #18

As long as a service is controlled by humans, you can't trust it. Bitpay, Coinable etc can't be trusted since they are controlled by people. You can only trust decentralized systems like bitcoins.

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September 19, 2015, 05:18:07 PM
 #19

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: Bizjournals

seeing 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.
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September 19, 2015, 05:28:06 PM
 #20

I wouldn't entrust any money to a company wherein the CEO blames this loss to 'hackers' due to a security loophole in their systems. BitPay has always been good in my perception for the last year up until before this hack happened. Hard to earn that trust again from the community even if you still continue to provide excellent service to your peers.

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