BTC Stolen from Poloniex

[provenceday]

poloniex is the most smoothly exchange platform!
i will keep support you！  

how about you launch some poloniex shares at a fixed price？

such as 1BTC=1000 poloniex shares

you can launch 0.2 million poloniex shares！

50% is yours and 50% sold to the users!

then we can get about 100btc from the market！

you can pay people who lose their btc!

Or Dev can give out 12.3% of Poloniex in shares to wipe out amount lost in BTCs.  Then pay regular dividends from profits.  Therefore, no need to raise exchange transaction fee.

i like your idea!

[asplinux]

No I'm sorry I'm STRONGLY against this, everyone trading there already pays (in fees) for the exchange to go well and be developed and secured, if there was a loss then you should raise the fees of whoever wants to keep using your exchange (not me), and ASK to the others if they want to.

I don't want to pay for it, I just withdrawn my BTC where are they? It says PENDING I want to know where are my BTC and why I still can't see them!

[pletharoe]

Well handled Busoni.

So, let me just get this straight.  Can you confirm that the process now is as follows:

1. All accounts debited by 12.3% to keep the exchange solvent.
2. Fees increased to 1.5% to raise capital.
3. Once higher fees have generated $50k, then user accounts will be reimbursed.

This may be a bitter pill for some, but the only other option is a run on the exchange, leading to 87.7% of users getting their funds back and 12.3% of users getting nothing.  Overall Busoni's solution is the most fair.

I have a couple of questions.
Q1. Some accounts were empty at the point of shut down, but have since had funds transferred to them.  Will they also be debited?
Q2. Assuming that trade continues at the "pre-theft" volume, how long will it take to raise the $50k?

Again, well done Busoni.  You have made the very best of a bad situation.  Not many people can man up and admit it when things go wrong, but it is the only way to tackle problems.

[sdersdf2]

Your response to this is admirable, busoni. Moreso, if you manage to follow through without hiking exchange fees. Poloniex is clearly very different than Mt. Gox. They could learn a lot from you.

Question: are you planning a broader security review of your site and/or maybe a third-party security audit to reduce risks going forward? Seems like this was low-hanging fruit and you should be on the lookout for anything else that you can quickly and easily patch.

[casinocoin]

I was skepticle at first to use poloniex, and just hovered around checking prices.
Like a few other posters have mentioned this is how matters should be handled, thanks for your support and I will now use your exchange!
Cheers

[IamNotSure]

Good thing about the transparency.

Glad to see that the users are more or less accepting the tax. I wouldn't be happy about it if I had BTC on your exchange but I'm not concerned. I hope you will process the other coins withdrawals though.

Don't raise the fee as much as 1,5% you're gonna kill your exchange !! 0,5% is reasonable

An IPO is the safest/fastest way to raise capital and reimburse everyone but you'll have to yield a part of the future profits.

[pineapples]

1.5% fees may well deter many users, making repayment take longer :p
i for one am not impressed with those fees.

short term btc deduction is fine. it'll allow the exchange to remain solvent and continue trading as normal.

i suggest you create fee shares similar to mcxfees and trade them on the exchange.
this way you could hold some shares/fees to return value into the exchange. and they'd be available to sell if necessary later.

[stevenb]

I think just keep original fee and deduce 12.3% btc balance from all accounts until stolen BTC is covered (in 2-3 months). So the exchange will self-recover with the help of all users and no one lost BTC.

[jimmyfozzers]

I have some BTC tied up in Poloniex, but have to applaud the dev's approach here. What's done is done, and how great to see a proactive attitude towards making things right.

I would happily take some dividend paying POL shares as reimbursement in lieu of the 12.3%.

Looking forward to hearing dev's thoughts on the share issue.

[turboblade]

I have made a btc deposit that has not yet been credited. Is this related

[adhitthana]

Thank you. I am ok, with that. Does that mean ALL bitcoins are stored online at the site?

[mishax1]

And you roll it on the users again ? like you did with XCP ?    nice one... still wonder why people keep trading there...

[deliciousowl]

Devs should really sell shares of poloniex using the XCP protocol, and then sell 12.5% to cover the missing BTC..

[sdersdf2]

poloniex is the most smoothly exchange platform!
i will keep support you！  

how about you launch some poloniex shares at a fixed price？

such as 1BTC=1000 poloniex shares

you can launch 0.2 million poloniex shares！

50% is yours and 50% sold to the users!

then we can get about 100btc from the market！

you can pay people who lose their btc!

Or Dev can give out 12.3% of Poloniex in shares to wipe out amount lost in BTCs.  Then pay regular dividends from profits.  Therefore, no need to raise exchange transaction fee.

i like your idea!

poloniex is the most smoothly exchange platform!
i will keep support you！  

how about you launch some poloniex shares at a fixed price？

such as 1BTC=1000 poloniex shares

you can launch 0.2 million poloniex shares！

50% is yours and 50% sold to the users!

then we can get about 100btc from the market！

you can pay people who lose their btc!

Or Dev can give out 12.3% of Poloniex in shares to wipe out amount lost in BTCs.  Then pay regular dividends from profits.  Therefore, no need to raise exchange transaction fee.

i like your idea!

A lot of people seem to be proposing that - of course, because it wouldn't cost you anything. but would cost busoni a percentage of future profits (profits he could clearly use to reinvest in the security of his exchange).

Does anyone realise it takes money to run an exchange? And more money to run a clean and secure one?

I wonder, would as many people be open to hike exchange fees generally - so exchanges like Poloniex have the funds they apparently need to provide something closer to 100% security?

It seems a bigger problem is that the average exchange fee out there is maybe not high enough for a lot of exchanges to provide the bank-level security people say they want but (many) appear unwillling to pay for. Just a thought.

Kudos again to you, busoni, if you follow-through. I wouldnt want to see exchange fees go up either, but it's starting to look like the bigger problem here is that exchanges need more money for more security-related development that would sharply reduce the risk of these problems. To give people the security they want, exchanges cant be run "on the cheap."

[jimmyfozzers]

I think just keep original fee and deduce 12.3% btc balance from all accounts until stolen BTC is covered (in 2-3 months). So the exchange will self-recover with the help of all users and no one lost BTC.

+1

A fee increase to 1.5% would likely be self-defeating in that volume would fall drastically. Keen to hear dev's estimate on pay back schedule, based on current earnings. I think he owes us that much...once he's had some sleep

[guysoft]

Thanks for such transparency.
Will we be able to withdraw other cryptocoins soon?

[Cryptobro]

Appreciate the honesty, I'm a Poloni user and have been enjoying watching its growth.

Are the planned safeguards (daemons checking balances etc) going to be employed on all wallets or just BTC?

[Cloudpost]

Busoni, thanks for clear description of the problem and for being honest with us.

I like your exchange and will continue to support it. I think it is better to increase the trading fee (for example from 0.2% to 0.4%, won't harm traders a lot, but will help tp pay back the debt much faster).

Trade volume on poloniex is not stable from day to day, it can be 200 or 800, so guys, don't calculate exchnge income based on last day trade volume!

[SkillRoad]

Thank you for letting us know how it went and what your plans are.
I used poloniex from when it accepted VTC and this post still makes me support you.

And if you deside to sell shares i would love to hear about it.

I am also willing to support, waiting for the results on the shares




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Next Coin Lite - Fair Distribution

[fairglu]

I wonder, would as many people be open to hike exchange fees generally - so exchanges like Poloniex have the funds they apparently need to provide something closer to 100% security?

Not many I reckon. High fees would kill the volumes.

Shares on the other hand would help recover losses faster, and people would be encouraged to trade there or advertise. It's win-win.