Bitfinex owners - stolen funds and ponzi schemes

[erikalui]

This is the same thing what happened with Liberty Reserve and none of these bitcoin exchange sites could be trusted anymore. No way to know if they were involved with any HYIPs or Ponzis and now I feel LBC too will face the same situation with so many illegal scams going on. It's only the depositors who lost their funds and they probably can't do anything about it now.

Don't see how you can compare the two. Liberty reserve was not operating with crypto currency, but was running an illegal payment processing operation.
They were supposedly warned many times by authorities that they are to turn off their operation, but they didn't. And they were shut down by force in the end,
with quite the drama and photo shooting on all media.

All that been said, liberty reserve was not a ponzi scheme afaik, while bitfinex on the other hand, is possible to be one, and if it's true that they did not report the incident
to their local authorities , well.. that just raises the question on their legitimacy even more.

Liberty Reserve also was dealing with all kinds of illegal activities like hyips, ponzis which is why the owner was arrested and the funds were seized and here also it's the investors who may face issues in withdrawing their funds due to Bitfinex being itself illegal.  The news of LR just came as a shock where the website was shut down immediately while here Bitfinex is probably lying about stolen funds. These payment processors operating without a valid license should never be trusted.

[Lionidas]

HongKong is Han Chinese they invented stealing

They seperated from China in along time ago. 

[LordCoder]

Let's be honest. He's young, he might not have seen that much amount of Bitcoins in his life. Scamming the members would be an easy task, simulate a hack, and withdraw properly. You're done.

[smho_16]

I have learned my lesson since Mt.Gox and since then I don't keep my coins on exchanges. I always keep them in my wallet as I like to save them like something precious and I can defend them better by holding them myself than letting someone else be in charge of my coins. More and more exchanges going down with the same excuse, there is something to be learned here. Only keep very few coins there if you do trading and withdraw as soon as you finish doing so.

[mayax]

This is the same thing what happened with Liberty Reserve and none of these bitcoin exchange sites could be trusted anymore. No way to know if they were involved with any HYIPs or Ponzis and now I feel LBC too will face the same situation with so many illegal scams going on. It's only the depositors who lost their funds and they probably can't do anything about it now.

Don't see how you can compare the two. Liberty reserve was not operating with crypto currency, but was running an illegal payment processing operation.
They were supposedly warned many times by authorities that they are to turn off their operation, but they didn't. And they were shut down by force in the end,
with quite the drama and photo shooting on all media.

All that been said, liberty reserve was not a ponzi scheme afaik, while bitfinex on the other hand, is possible to be one, and if it's true that they did not report the incident
to their local authorities , well.. that just raises the question on their legitimacy even more.

Liberty Reserve also was dealing with all kinds of illegal activities like hyips, ponzis which is why the owner was arrested and the funds were seized and here also it's the investors who may face issues in withdrawing their funds due to Bitfinex being itself illegal.  The news of LR just came as a shock where the website was shut down immediately while here Bitfinex is probably lying about stolen funds. These payment processors operating without a valid license should never be trusted.

if you want to compare like that then 90% from BTC  is coming from illegal activities

[Frodomaga]

Let's be honest. He's young, he might not have seen that much amount of Bitcoins in his life. Scamming the members would be an easy task, simulate a hack, and withdraw properly. You're done.

So your saying this heist was initiated by a 15 year old kid? 

Just milling around the internet in his mother's basement?

Now if that is true then the army of security experts who were hired to keep the site from this happening have alot of explaining too do. 

[calme]

I have learned my lesson since Mt.Gox and since then I don't keep my coins on exchanges. I always keep them in my wallet as I like to save them like something precious and I can defend them better by holding them myself than letting someone else be in charge of my coins. More and more exchanges going down with the same excuse, there is something to be learned here. Only keep very few coins there if you do trading and withdraw as soon as you finish doing so.

But you don't really have like 40 min. or so when news breaks. You need to be ready.

[Doamader]

Well the fact bitcoin isnt a currencie regulated makes any attempt to find the people behind the hack be almost impossible to find, how can they contact police since bitcoin isnt regulated, soo there is nothing you can wait from those bitcoins lost, during the hack or even if were just cashout from admin.

[bitbunnny]

Let's be honest. He's young, he might not have seen that much amount of Bitcoins in his life. Scamming the members would be an easy task, simulate a hack, and withdraw properly. You're done.

So your saying this heist was initiated by a 15 year old kid? 

Just milling around the internet in his mother's basement?

Now if that is true then the army of security experts who were hired to keep the site from this happening have alot of explaining too do. 

Mybe this is not so unbelivable. Many good hackers are very young, these days kids get more and more educated abou IT technologies and Internet and hack forums are great source for their knowledge. But in this case many circumstances should be yet explained so we would see.

[Frodomaga]

Let's be honest. He's young, he might not have seen that much amount of Bitcoins in his life. Scamming the members would be an easy task, simulate a hack, and withdraw properly. You're done.

So your saying this heist was initiated by a 15 year old kid?  

Just milling around the internet in his mother's basement?

Now if that is true then the army of security experts who were hired to keep the site from this happening have alot of explaining too do.  

Mybe this is not so unbelivable. Many good hackers are very young, these days kids get more and more educated abou IT technologies and Internet and hack forums are great source for their knowledge. But in this case many circumstances should be yet explained so we would see.

But these youngster have no sense of ethics?
They don't know what they are doing is wrong? Stealing people's money.
On one hand they can not be arrested until they are 18 years old. So this might be their incentive to do this at that age knowing fully well if they get caught they won't have to go to jail. Just have mommy and daddy pay the fines and get off scott free.

[Hazir]

"The digital-currency exchange also plans to compensate clients for losses from the $65-million theft with tokens of credit"

This is totally ridiculous, who in his sane mind would belie that these tokens will be worth even 1 cent. Give people their money back.
Not some virtual tokens no different that newly created altcoin, dirt cheap promises are probably better that these tokens.

[Johnyloco]

"The digital-currency exchange also plans to compensate clients for losses from the $65-million theft with tokens of credit"

This is totally ridiculous, who in his sane mind would belie that these tokens will be worth even 1 cent. Give people their money back.
Not some virtual tokens no different that newly created altcoin, dirt cheap promises are probably better that these tokens.

Maybe the tokens will work like one big ICO

[Lionidas]

"The digital-currency exchange also plans to compensate clients for losses from the $65-million theft with tokens of credit"

This is totally ridiculous, who in his sane mind would belie that these tokens will be worth even 1 cent. Give people their money back.
Not some virtual tokens no different that newly created altcoin, dirt cheap promises are probably better that these tokens.

Maybe the tokens will work like one big ICO

Now that would a big kick in the face of the customers who want answers and their bitcoins back.

[vero]

is there a law that could confirm the report i mean if the owner bitfinex report the matter to the police the hacker can snare by law.

[Johnyloco]

I think it is yet to be seen what will happen for this case, but I for sure don't believe that bitfinex is a collapsed ponzi

[mayax]

is there a law that could confirm the report i mean if the owner bitfinex report the matter to the police the hacker can snare by law.

not to HK police where their company is registered.

in short, Bitfines will no report anything because it's running an illegal forex/broker without license and first of all, the police will ask them about that...

[calme]

So is there any hope for these tokens generating massive profits, making them vastly superior to the fiat they are stealing?

[mayax]

"The digital-currency exchange also plans to compensate clients for losses from the $65-million theft with tokens of credit"

This is totally ridiculous, who in his sane mind would belie that these tokens will be worth even 1 cent. Give people their money back.
Not some virtual tokens no different that newly created altcoin, dirt cheap promises are probably better that these tokens.

how can they do that? they need "pocket" money for their entire life

I warned about Bitfinex since years ago. Many said that it's FUD, stupid idiots and brain washed kids. They born like yesterday and they think that they know everything about e-currencies.

BTC-e, Kraken, the chinesse exchangers  will end the same in a very short time. all these are unlicensed, uninsured so...illegals. their clients will get nothing back.

[calme]

Well of course a huge %age of the problem here is that U.S. users can't really spread their assets across various exchanges in the way that nearly everyone else can. So no shock that the infamous U.S.-hater of Europe had its country represented in Bitfinex ownership

[Nimbulan]

I think it is yet to be seen what will happen for this case, but I for sure don't believe that bitfinex is a collapsed ponzi

i also dont believe that, i think that it might have been a theft for sure, though there is a big possibility that the thief is not going to return all the bitcoins