Peter Schiff account frozen

[btc_angela]

In a twist of faith, Peter Schiff, a bitcoin opponent, and anti-crypto, had his account frozen by Puerto Rico government.



https://twitter.com/PeterSchiff/status/1543729010278113281

So he believes that bitcoin is not back by something, but the the end of the day, he yielded his money to some centralized power and now his money is frozen, how ironic it is.

It is time for him to move to bitcoin or crypto? Nah, I don't think so, he will just have to rub this though to him. 

[_act_]

It is time for him to move to bitcoin or crypto? Nah, I don't think so, he will just have to rub this though to him. 

We all know that he can not do that, he is into gold for many years ago and other centralized businesses, he would have been used to what could be the inconveniences.

But I understand you very well, what most matters is that bitcoin is decentralized, but many people today are using bitcoin in a centralized way, many people are having centralized wallet and keeping their coins on exchanges.

But what most matters is the value of bitcoin, it would be fun when it reach all-time-high again.

[NeuroticFish]

he yielded his money to some centralized power and now his money is frozen, how ironic it is.

His money was in others' custody for all his life. He doesn't find this ironic. This is what happens for most of the world.
What he's doing... I find it a poor excuse for the fact he's losing his customers' money. And instead of admitting that gold price is going down the toilet, he blames some authorities for the fact he was sloppy and he didn't see this coming when the war has become real.

[hZti]

Karma Streiks every day and I am sure that his account was not frozen for no reason. It is possible of course that he has done no crime but maybe he didn't send them the correct paperworks or something else. It is always the people that talk shit about bitcoin or some other stuff, that just do it to cover up their own mistakes. This time he will talk shit about Puerto Rico but I hope people will see who is the real idiot.

[NotATether]

I don't see any reason for him to store funds overseas instead of at his home-country the US, unless it was an account inside an offshore bank. In that case its not surprising that the account was closed, considering that governments crack down on them all the time.

[darkv0rt3x]

Maybe we should gather all users in the forum, collect $10 so that we can help the poor guy! He will be homeless probably! He even says he made no money because because costs are freakin' high. Well, guess what? It's your shitcoin working like a charm, ass hole... Deal with it biatch! xD

Also it costs a fortune to run a small bank. That's why I never really made any money. The compliance costs are outrageous.

Even this guy will make rug pulls and harm people!

[Poker Player]

Well, but this story is also not very different from the average user, who leaves his Bitcoins in Celsius or Coinbase and can freeze them. As if everyone who has Bitcoin keeps it with their private keys.

Anyway, Schiff is no fool either and will have a small part of his funds there.

[darkv0rt3x]

Well, but this story is also not very different from the average user, who leaves his Bitcoins in Celsius or Coinbase and can freeze them. As if everyone who has Bitcoin keeps it with their private keys.

Anyway, Schiff is no fool either and will have a small part of his funds there.

Yet, that is not Bitcoin network's fault. Whoever leaves their Bitcoin in any custodial shit/crap, will end up like this guy and many others. Maybe this is the only way people will understand that they need to protect their Bitcoin 10x better than they protect their actual shitcoin. And I'm talking nice when I say 10x, because Bitcoin worth a lot more than 10x the shiat currency! By what it represents, by it's properties, by what it enables, etc!

[mindrust]

We need a decentralized token which is pegged to USD but it is probably never going to work as we have seen with terra luna. Bitcoin isn't exactly a solution to this problem because of its volatility. In the future when bitcoin replaces the USD yes it will be the ultimate solution but not now. People will have to obey banks a bit longer. Even bankers (like Peter Schiff) don't like banks as you've seen in the OP.

[Smartvirus]

Yet, that is not Bitcoin network's fault. Whoever leaves their Bitcoin in any custodial shit/crap, will end up like this guy and many others.

In the end, it all goes down to centralization and regulations. Having him complain of never making profits and putting up a lot of cost to meet compliance is just him pointing out the ills to the centralized system and the more reason for him to dive into cryptos. I guess this is going to be difficult even for him as an anti-crypto and the immediate ridicule he would come by for not being true to his words in the past but the truth is, you cod still own bitcoin while watching on the sideline. Although for individuals like him, its likely going to be required that he declares any holding publicly for checks by the government and ensure proper taxation on it. Well, its the music he had put up with for so long, let him dance to it.

[Lucius]

It is time for him to move to bitcoin or crypto? Nah, I don't think so, he will just have to rub this though to him. 

Even if by some miracle he switches to crypto, does anyone think he would do it the right way? When I say "the right way", I mean all those who do it the completely wrong way by using crypto exchanges as a place to store their cryptocurrencies.

Is there any difference between someone who keeps fiat in a bank and someone who keeps Bitcoin in a custodial service? When I read that someone is excited because he bought Bitcoin and finally got rid of fiat, and gave that same Bitcoin to someone else for safekeeping - then I know that this person does not understand at all how wrong he is.

[Alisha-k]

This what happens when you feel more secured in a strange country not knowing what you feel you own can be seized, frozen, confiscated or even use to better their own country if there are no ways to claim them anymore.  peter Schiff will be wondering why he neglected Bitcoin so he can have complete access to his funds and keys. Hopefully he will get a part of his fund but it would have been if he had all at his own custody.

[DdmrDdmr]

It’s not his bank account that has been closed by the Puerto Rican regulators, but rather his bank (well actually, one that he was participating in with a 4% ownership or so), this affecting not only him, but potentially thousands of people.

Apparently, the already existing bank was neglecting to maintain the required net capital, which lead to it’s closure. According to Schiff’s twitter, they didn’t precisely love the idea of him being involved too much due to … bad press about him ...

[DaveF]

From the I'm too lazy to look into it deeply department, since PR is a US territory are banks there use the FDIC? Or is it another regulating / insuring body (which may or may not use the same rules)?
I did a very quick search and did not find anything so I figured I was not looking for the correct wording.

Does not matter, banks have been getting closed for not following capital rules for a very long time from a lot of regulators.
Just because a semi-famous person owns part of it should not and does not matter.

-Dave

[jack3rror]

That's exactly what happens to many Bitcoiners in France, Kinda funny that it happens too on Peter Schiff

Banks are frozing assets when you make a wire transfert to exchanges in France

[freedomgo]

I hope he realized it now, once we put our money in the bank, we are not in control of it anymore, they can close it for any reason that violates their rules, and sometimes we don't know that we have already violated the rules. So the best way is just to store our money in crypto, we can have full privacy and we can access it anytime we want.

When your account is even suspected for violation, they could freeze it pending investigation, and even if you will be able to get your money if proven you don't commit any crime, still that's a hasle on your part.


@OP, I think the post is a bit misleading, it's not the account but the bank itself was closed.

here's the full article.
https://cointelegraph.com/news/peter-schiff-s-bank-closure-strengthens-bitcoin-case-for-financial-freedom

Prominent economist Peter Schiff, who is well-known in the community for his anti-crypto sentiments, had his bank shut down by Puerto Rico regulators.

[ChrisPop]

It's ok. Some people will realise that Bitcoin has been invented to offer freedom sooner or later.
I'm not stating that regulations are not good because they are. They are needed to protect all the layers of our society.

He should have respected the rules. Net capital rules are there for a reason. If you're going to use a third-party service, you better read the terms & conditions. This appiies to anything. When you create a Bitcoin wallet and start to fund and perform transactions you need to do a minimum of research beforehand.

Also this tweet sounds like he wants to place the blame on the bank instead of himself for not meeting the requirements set by the bank.

[Easteregg69]

It has any gold in the vault? From what I understand. He is selling his own private debted bank.

As in he owns it. You can buy it!

Crazy bug. I take a beer.

PS. ahahaha. it's customer money on the line. His account is not frozen. Told you my opinion on account managers?
PPS. Tell Peter I saved his ass. He can go and buy an ice cream if he likes to. For himself. Instead of microphone he can use it for a hallelujah.

[tranthidung]

Be your own bank with your Bitcoin that stores in your non-custodial wallet. You must have usable backup of that wallet for later recover.

No bank, no government, nobody can seize, free your Bitcoin wallet or steal your Bitcoin without access to its private key, if you don't give it away.

Peter Schiff was just too late to realize that risk or he just naively believes in central banks.

Time to read the never old advice: Not your keys, not your coins and Security Checklist

[Easteregg69]

Peter Schiff was just too late to realize that risk or he just naively believes in central banks.

Time to read the never old advice: Not your keys, not your coins and Security Checklist

You still don't get it. Peter owns the mentioned bank. He eats the loss like jam.

I put it in native and Nexo and wrap. The BTC. On compound. fBTC for example.

No wonder price is going down if I represent the true value.

It’s not his bank account that has been closed by the Puerto Rican regulators, but rather his bank (well actually, one that he was participating in with a 4% ownership or so), this affecting not only him, but potentially thousands of people.

Apparently, the already existing bank was neglecting to maintain the required net capital, which lead to it’s closure. According to Schiff’s twitter, they didn’t precisely love the idea of him being involved too much due to … bad press about him ...

ahahaha. Bingo! (I go figure where the idea of debt came from).

He could change to work under a nick name. You know.