Which laws?
FinCEN is about money laundering, not about consumer protection. I [...]
[...] If he declares bankruptcy of the business, what stops him from taking our combined unprotected USD funds (if he is not a bank, etc) that are in his business bank account to pay the bad debts (or what if everyone's combinded funds don't match the current balance due to circumstances)... You took the risk of giving money to him for some service or product. Which laws protect you?...
I don't understand what your point is. I said nothing about FinCEN or the FDIC. There is a federal law that says "It is illegal to steal money from people." It has nothing to do with FinCen. It is the "theft is illegal" law. You are merely stating the obvious, that there is a chance that Bitfloor could be financially insolvent and unable to pay out funds. You are only "protected" to the extent that the quantity money is worth suing over and the defendant is actually solvent. And if the defendant is insolvent, it's better to get the money out quickly rather than waiting 30+ days.
There is absolutely no route to get your money returned from an insolvent institution, but ACH theft can be reversed, although with significant wait times. So it comes down to a cost/benefit analysis. If you perceive the risk of ACH theft to be significant, and the amount you have stashed in Bitfloor is insignificant, i.e. $25, then waiting 30+ days is the way to go. If you perceive the risk of ACH theft to be insignificant, then getting the money out immediately is the way to go.
Money on the books get lost all the time in bankruptcies. People and companies pay a failing business, business never delivers product, business declares bankruptcy, that original customer gets nothing, or only a small fraction of the original amount.
So you are telling folks here that, since they are dealing with a company that may end up folding - rather than getting ACH transfer out of there as soon as possible, they should wait 7-10 days after account closure (when the remaining balance is mailed to the account holder) and wait even LONGER for Roman to set up a new bank account, order, print and mail out 5,000+ checks? That is even MORE risk. You are telling people to INCREASE the risk of having their money fold along with a potentially insolvent institution.
Instead of ACHing out upon receipt of the notice, they should wait potentially up to a month or more to receive money, if your initial premise is that the money might not be there in the first place? What a lousy way to support your initial premise!
All I said was that it's not a good idea to give up bank account numbers to a failing business so you can terminate your relationship with them.
You're right, if you start with the initial assumption that Bitfloor was doing FRB and doesn't have the USD funds to cover their stated USD customer funds, then the LOGICAL next step is to try to get your money returned in over a month rather than less than a week. Right...
Your funds are not protected by laws. I think a lot of people will think your statement refers to the FDIC which he most certainly DOES NOT pay into the fund and depositors are NOT protected by this at all. Or else during the first hack, they would have received their money back.
Again, you are absolutely wrong. I said nothing about FDIC and I did not say the funds were "insured" or "guaranteed." The "lot of people" who will "think" that must be misguided. There is a difference between funds protected by the option of legal action and funds protected by socialist mechanisms such as the FDIC. And, yes, for those who like to state the obvious,
funds trusted with an insolvent institution are often never seen again. That's why Nuro77's suggestion is absolutely hilarious, he thinks we should attach as much risk as possible to our money.
No one's given any actual evidence that Bitfloor is financially insolvent. All we have is information that a bank account was closed, and from that we cannot even make any assumptions of insolvency, only that someone (or an algorithm) in Risk Management was not pleased. Sure, the risk of insolvency or at the very least a long wait for thousands of checks to be written is always a possibility. Which is why,
again, people with money in Bitfloor should get their money out as fast as possible which is exactly what Roman suggested. Or you could listen to OP and trust them with your money for another 30+ days...
No one is saying Roman is going to start a bank fraud operation, just that this is so fucking stupid and you should not trust a folding business with more of your personal info that's going to need to be secured and maintained.
You're right, you should wait a week for the account to actually be closed, 7-10 days for the check to be mailed to Bitfloor, 4-5 days for a new account to be started, 2-4 weeks for thousands of checks to be mailed and printed.
O W8 - to have the checks mailed, you need to give Roman your mailing address. He could send his evil minions out and attack your house! This is perfect, why steal a few million in coins and cash when you could steal a few thousand houses? God, Bitfloor is an evil genius. You folks crack me up.
