BTC Stolen from Poloniex

[jaideep1000]

Same thing for me too. I deposited half of my btc there and it hasn't shown up yet.

[ryback]

I was not aware of this theft, and I stupidly sent in 10 BTC about 7 hours after your twitter announcement

https://blockchain.info/address/16CBhYouzdB4xgxeZ76RjF8wBRimtvMB2k

https://twitter.com/Poloniex/status/440734781689446400

I expect to get the entire 10BTC balance back, and NOT 12.3% less, as I would've expected you to block deposits as well, or at least put up a sign on the front page of the site waring about the hack.

Please confirm that you agree and will do so. Thank you.

i have the same problem with my 5 btc!!!!!!
http://blockchain.info/tx-index/435694ebe83387286e95a30d866768df4dc617ceab88b5a4aa8b691dbac8ba63
what now?

[The One]

Kudos for being transparent about the problems with your exchange. I know that some people doubted you at first when the XCP was stolen, but that turned out to not be your fault. Now when it actually is the fault of your exchange you are immediately holding your hand up. That takes courage and shows your integrity!  

I agree with all the previous posters here who have suggested that you sell some shares of your exchange instead of dramatically raising the fees across the board.

I know that a lot of people don't like https://cryptostocks.com/ but I think that has more to do with the projects/companies that are listed there than the actual exchange itself. It would be an easy and quick way to raise the money needed to re-pay what was stolen, and your users wouldn't be forced to take a loss.

Raising the fees to 1,5% is only going to hurt the exchange IMO, even if it's temporary. Perhaps you could increase them 50% from the current level, but increasing them to 1,5% is really a lot!

I have another suggestion.

It's kind of depending on if you follow through with the idea of doing an IPO or not, but I think it's something worth considering if you do.

How about raising enough money to create an "insurance fund" that will be available for those users who are willing to accept a slightly higher trading fee than uninsured users?

You would keep this fund in cold storage and it would be completely transparent on the blockchain for everyone to verify. It would only be used to reimburse those accounts that had paid the higher trading fee in case of another hack of the exchange. By making it voluntary it doesn't hurt anyone who doesn't want to pay the extra fee, and as the income from the insurance premiums increase so will the level of insurance. This will make Poloniex the first exchange where user funds are insured. Perhaps you could even make the funds on that cold storage account multisignature with 2 trusted members from the community, that way anyone who doubts your integrity will feel a lot safer as well...

I know that I would certainly be willing to pay a slightly higher fee to sleep a little better knowing that even if you are hacked again at least I will get reimbursed, and I'm sure there are a lot of sad MtGox users who feel the same way.

I'm embarrassed to admit that the second I saw something about Poloniex being hacked I immediately attempted a withdrawal of my BTC from there. They are now "stuck in limbo" but I assume that they will show back up again once you have reversed the attempted transactions?

This is a truly great idea. I could only offer one expansion. Rather than making it internal, perhaps a group of us could put together an insurance package and market it to exchanges and such. Then it's completely third party, eliminating one layer of trust.

the shills are rife today else i am in the land of mindless fckwits

Next you will be suggesting derivatives on the insurance losses ffs

I ain't no fuckin' shill. The closest I come is my sig, and I do business with those people.

Insurance is not a scam. REGULATED insurance IS. I'm getting old, so I remember when it wasn't regulated on automobile insurance. As soon as they bought some senators to "save money for responsible people" the rates rose over 5 times.

But insurance in and of itself is a good idea. It mitigates risk, and in so doing promotes trade. An exchange that had deposit insurance from a reputable and transparent insurance agency would attract more business than one that don't.

If such instruments do not appear in the crypto world, it will have its growth stunted. If we want mainstream adoption, then there are things like insurance houses and loan companies that will have to exist.

What I don't want to see is such entities being regulated by governments, because that will kill the coin in short order. You'll have taxes and regulations and oversight and ad nauseam. But a few insurance pools? That's a whole 'nother animal. So long as the insurance is voluntary, either paid by the exchange holder or the individual investor, then it's not only not a problem, it should encourage trade. Yes, there is some moral hazard there, but we need some risk takers to build the economy. As big as it's gotten, bitcoin is still small potatoes compared to most fiat currencies. We can build on the good models and ditch the bad ones. Some things are inherent to markets, and risk mitigation is one of them. Given the public ledger, it's unlikely that an insurance agent could take the bag and run. Any such company would have to identify themselves to the public, or only fools would pay. This would garner a level of accountability and trust that's sorely needed in the public exchanges.

I take it back bud, but when I see those promoting mechanisms that smack of fractional reserve abuse I get a bit hot under the collar.

IF an exchange is serious they will make sure there is a rain day fund to cover this sort of thing, they could even use it as a promotional positive aspect and list the insurance fund in an open manner but should there be situation of two tier trading where some given a leg up because of circumstance ( ie existing wealth in fiat ) while others actually have to mine for value then I would not be recommending that and would not like to see it be implemented.

All central banks run a policy of issuing debt not credit and they are subject to terminal failure by design, if you charge someone to print notes for them, where does the value come from to pay the debt if you need to pay fee's to access the paper to pay it off. We are better off thinking up new mechanisms that enable us to retain control of what we have worked for than to just change the symbol in front of the digits and its business usual.

http://perfecteconomy.com/wp/

How it could be applied to crypto is anyones guess but here is a better way than fractional reserve, I know Mike personally and although his people skills could do with a polish the concept is sound.

We need less lawyers, tax collectors, accountants, solicitors, notaries ect and a hell of a lot more trust and respect for each other else whats the point ?

 

Haven't followed the link yet, so no comment so far . As to fractional reserve, we are on the same page. I'm a student of the Austrian school of economics. While insurance can be abused, it's not fractional reserve in any sense.

I'm running low on caffeine, so I'll leave it at that for now. No offense taken, other than the shill remark. I'll sell shit, but I won't hide it or mount a pretense. I'm far too arrogant for such tactics

Ah a student.....keep up with your studies.

[noobinscrypt]

I guess i lost around .1-.2 btc, anyway, id recommend just raising fees to 50% current level as another suggested to try and recoup some cost. Thanks that you only lost a bit and not all of it. Its a risk of using an online exchange...

[negritaman]

Make these debt instruments trade able, issue them with an annual coupon of 30%, and the market would bid them up to likely 15% or 10%. 

Victims here would turn into investors, who would likely see an instant PROFIT.

This would also give you a means to issue more debt, after you know your cost of capital (that the market is willing to lend to you at) and allow you to invest in security/marketing/etc.

(To understand how this is likely the guaranteed outcome, one would need to understand how bonds move inverse to interest rates.)

What part of the negociable instrument fraud did you not understand when it was used to destroy global economies back in 08 ?

getting sick of listening to this mindless shit

If you don't have coins you shouldn't be able to trade on promissory notes
If an exchange gets hacked THEY should be replacing it from fee's acrued from transactions, if no rainy day fund is set aside then use a different exchange. I certainly don't need more fee's and more complications being tossed into the crypto movement so a bunch of useless middle class twats can skim off the top and hobble our ability to find fiscal freedom while not actually providing value.

I am done here and with this bullshit

[khois87]

when is normal again?  

[Biomech]

Haven't followed the link yet, so no comment so far . As to fractional reserve, we are on the same page. I'm a student of the Austrian school of economics. While insurance can be abused, it's not fractional reserve in any sense.

I'm running low on caffeine, so I'll leave it at that for now. No offense taken, other than the shill remark. I'll sell shit, but I won't hide it or mount a pretense. I'm far too arrogant for such tactics

Ah a student.....keep up with your studies.

Always. About a decade in so far

[Chiptuner]

I sent two hours ago BTC from a purse - didn't reach yet. They were gone?

[maardein]

I sent two hours ago BTC from a purse - didn't reach yet. They were gone?

The daemon is down. They will probably show up after he has fixed the problems.

[xref]

I believe paying every one affected with shares as an option will benefit both parties, one, the amount of shares should be enough to make people get their money back within 3 months and start benefiting, the second thing is you benefit having all those people stick with your exchange

[Mike Hearn]

busoni, you need to shut down Poloniex now and try to make your users whole from your own funds and debt. Do not continue trying to run an exchange. Your post mortem indicates that you do not have sufficient programming ability to handle other peoples money - no mention was even made of database transactions, which are a basic "database programming 101" topic. Your proposed fix of checking for negative balances is wrong and indicates that your code is almost certainly riddled with other exploitable bugs.

Please do the right thing and refund everyones outstanding balances, then wind up your operation.

[RenegadeMind]

I was not aware of this theft, and I stupidly sent in 10 BTC about 7 hours after your twitter announcement

https://blockchain.info/address/16CBhYouzdB4xgxeZ76RjF8wBRimtvMB2k

https://twitter.com/Poloniex/status/440734781689446400

I expect to get the entire 10BTC balance back, and NOT 12.3% less, as I would've expected you to block deposits as well, or at least put up a sign on the front page of the site waring about the hack.

Please confirm that you agree and will do so. Thank you.

This is why I asked about orders already placed. Those funds should be locked, just as funds that haven't been deposited.

I'm still curious about that.

You case is very clear cut - there's no reason to garnish 12.3% there. My case for funds on orders... not so clear cut... 

[uhoh]

Fairly embarrassing oversight, but kudos for being so honest about the situation and updating everyone so quickly.

[FL123]

i deposit 5 btc 1 hour ago and what next?
my btc are frozen in network
and where exactly does it say please don't make any btc deposits!!!!!

+1

Exactly the exchange should put a warning message now!

[elrapido80]

i deposit 5 btc 1 hour ago and what next?
my btc are frozen in network
and where exactly does it say please don't make any btc deposits!!!!!

+1

Exactly the exchange should put a warning message now!

The guy's been out of sight for a number of hours now hasn't he? I read he was sleeping?

[provenceday]

will still support poloniex

[Distortion1919]

  hey hacker Share some of the Spoils  1KV2pUFZrSprrBsMVyA8EgAyHRi8GDYtFZ THANKS so much easy come Easy Go right

[2dogs]

Did not hold BTC at Poloniex, but other altcoins - does this mean my balance will be reduced as well?

EDIT:  from website:

Poloniex Exchange @Poloniex

Only BTC was taken, and only BTC will be deducted.


Meanwhile, all markets there are frozen.

[Chiptuner]

How to return the sent BTC (((

[BitOnyx]

There were a lot of hacks recently. Maybe we should try to look for different way of store and work of exchange. Or maybe finally people would use insurance or realize not everyone can just run a company that stores people bitcoins without protection.