What prevents companies from "losing" money in crypto?

[elektra]

I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

[1713402615]

1713402615

[1713402615]

1713402615

[1713402615]

1713402615

[Wendigo]

Every respectable online cryptocoin exchange has experienced at least one security breach and has had funds stolen in their existence 
They can certainly fake getting fleeced out of their hard-earned investment money by hiring an inside man acting as the hacker. This has happened before on multiple occasions and it sure as heck can happen again.

[Red-Apple]

the question is not why they are not doing it, the question is why should they even bother doing this.
i mean there are a lot of other easier ways of achieving the same result but why should anyone go through all the trouble of using a third party exchange which is not regulated i should add, and take all the risks just to hide their money and say it was stolen/lost.

not to mention all the fees that is going to cost! each transaction will cost 0.2% fee on average to exchange fiat > bitcoin > different currency > bitcoin > fiat. and on a large sum of money that is a lot.

[ASHLIUSZ]

The volatility is the one that keeps the bitcoin not getting included into the big companies. Also big companies make larger transaction which will cause a major financial collapse as the bitcoin price varies with regards to the time. Another reason is that right now the acceptance is not that high to grab a big profit through cryptocurrency.

[cleygaux]

Price volatility of bitcoin I think is one of the reasons and of course bitcoin is not regulated at all.

[maku]

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

A company can't buy bitcoin just like that because they think it is nice to have. There need to be whole business plan associated with buying bitcoin, storing and managing it.
The purchase needs to be documented, and some sort of countermeasures set. Bitcoin is not some regulated asset and most money mangers can't touch it.
Buying bitcoin by some company can be compared to buying Baseball cards just because someone at the company thinks that they are cool.

[elektra]

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

A company can't buy bitcoin just like that because they think it is nice to have. There need to be whole business plan associated with buying bitcoin, storing and managing it.
The purchase needs to be documented, and some sort of countermeasures set. Bitcoin is not some regulated asset and most money mangers can't touch it.
Buying bitcoin by some company can be compared to buying Baseball cards just because someone at the company thinks that they are cool.

That is not true, at least not in my country. You can invest in pretty much anything as a company.

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?

[FA wings]

That is not true, at least not in my country. You can invest in pretty much anything as a company.

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?
[/quote]They will focus on tracking that address，Prevent virtual currency transfers

[Nagadota]

Also why have a third party or an "insider" to the "hack". Why not just move the coins to another address, no one can prove who moved the coins anyway?

You look more legitimate if you claim to be "hacked" when you're having problems or you stole your customers' coins.  Mt. Gox is a prime example of this, with "all your coins are safe" being the classic line.  No one can prove what you did but if you haven't already provided some kind of explanation, the authorities will rapidly be on your ass.

[amacar2]

I think you mean hedge funds by companies, a team of experts will be there to make any investment decision and I don't think everyone on that team will agree to do what you have suggested above 

Talking about other companies like exchanges themselves, yes they can do it but they can't use those funds because every team member will be monitored. Bitfinex got hacked recently and many believes that this is just an inside job and team members of the exchange are the one who are involved in this shit show, but nobody can prove that. 

[Pettuh4]

I think these companies have the financial muscles to skip their way through challenging times and so might not be directly affected by the losses they've incurred through cryptocurrencies. I know major exchanges hedge both Bitcoin and Altcoins  in their line of business and they have their ways around with the help of financial investment experts who minimizes their losses in cases of major tumbles and maximize their profits when its soaring.

[AicecreaME]

Just like the traditional banks, to avoid losses from the money that they have from their depositor they just use their money to invest it into something so they can have a chance to get profits from their crypto money and because most of the coins are pumping they can easily make money from it and they can both avoid getting losses and also earn profits at the same time.

[Yakamoto]

I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

Most companies don't invest in Bitcoin. They may receive Bitcoin but most of the time they exchange said Bitcoin almost immediately so that they don't lose on value, and most of them don't hold beyond maybe a few days' worth.

What would they gain from pretending that all of the coins were hacked to begin with? If there is no benefit to them, and it just results in bad PR, then what is the point? It'll just drive people away from their services. They won't be able to pretend they got money if they exchange it later and the tax agencies now ask the companies where all this money suddenly came from.

[bamboylee]

If the companies commit fraud by declaring they got hacked, then the authorities just have to flag the addresses the money was sent to. In one point, you have to move the fund or exchange it to fiat. The authorities will follow that trail and soon the company will be busted. Nothing is totally anonymous especially if you have to use exchanges to exchange to fiat.

[The Sceptical Chymist]

Price volatility of bitcoin I think is one of the reasons and of course bitcoin is not regulated at all.

I love how you morons only read the title of the thread. 

OP, most companies are responsible to far more people than their customers.   Shareholders,  regulators, etc.  So that's one reason why your scenario doesn't happen.   Nobody is going to read what I write anyway,  so you can all suck me.

[qiman]

There are more big companies investing in Bitcoin day by day and also many other start up companies now using the blockchain in various ways to crowd fund their projects so e can see the progress but many early adopters cashing out and speculators playing the markets account for Bitcoin volatility.

[SONG GEET]

I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

Yes exchange allows any company to open business account to trade bitcoin but they can't just sell off all their bitcoins or send out those bitcoin and claim that their account got compromised. Exchange themselves will conduct investigation on those situations and if exchange doesn't have any security flaw than the one was responsible for handling companies account might have to bear all the losses.

[phr0stbyt3]

That can surely happen no doubt in that but if you are trading on a us based exchange someone would surely investigate this issue and they can get caught big time. Another reason I'm not pretty sure but i have heard bitfinex had payed all the hacked funds back to the investors and big exchanges already make 1000's of bitcoin per day i don't think this step would be required at all

[mrcash02]

I know it is possible to sign up as a company to invest in Bitcoins on almost all exchanges where they sell Bitcoins.

But I am just wondering, what is preventing companies to invest big in Bitcoins and then pretend that someone stole their private key and stole the funds, but in reality they just send the coins and exchange them through a bunch of different currencies and Monero etc that is "impossible" to trace? Will there not be a lot of money lost this way? I mean hacks etc are happening all the time so how would someone prove they did not get hacked?

Hackers are trying to steal other's money all the time, same way thieves in real life are trying to steal banks, stores, etc. But it's not so easy to do, the hackers have intelligence and skills and the companies have security measures to prevent successful attacks. Sometimes it fail, and it's a real risk, but doesn't happen all the time.

What prevents companies to from losing money in crypto is the technology, security measures.

[Kprawn]

What prevents people from robbing their own businesses? It happens and it is usually done to fck over the insurance companies. They will have to

prove to the insurance that their was a breach in their system and that it was not a in-house job. The insurance investigators will have to hire

some developer with the knowledge to investigate the matter... or sub-contract a company to do it for them.