Isn't this the same exchange that got hacked, and socialized the losses throughout their customer accounts? They've been shady on many fronts for a long time.
it's not a question of you getting caught off-guard but a massive exchange being trapped now (what do they do?) I kinda feel for them because they tried to build a legit-looking exchange business unlike the famous scams, but now they are stuck and these losses are mind-bending
They lost a ton of their customers' crypto. They're paying people back in cash at prices that are now 1/3 or less of the value of the crypto that customers deposited with them.
Yet another hack resulting in the loss of tens of millions of dollars, transactions taking forever, retailers announcing that they no longer accept Bitcoin, massive questions surrounding one of the largest exchanges:
Im not holding anyone responsible, im just mentioning that, it's obvious that a lot of the money flowing into crypto its not legal, this sets a clear example of how easy stolen money was washed using coinbase without much problems, its a clear indicator for the big picture, when exchanges like binance has 10x more volume, where do u think that money is really comming from? and that is actually happening on those exchanges with money flowing?
The stolen cryptocurrency was not recovered. The company put in its own real (fiat if you prefer) money to cover the losses. They did this because if they don't, the operation will collapse; no one will invest if bad security means all the money disappears.
It was somewhat difficult to engage with your comment because it felt kind of like it was strawmanning.
But I think the reality is you just misunderstood the original comment. The original comment was saying that it was good that people were withdrawing their crypto, not that it was good that any particular exchange had become insolvent. Only after I read your edited original comment did I realise that this is what happened.
When a crypto exchange fails I always say "That was unsurprising. Remember to hold your own coins." A lot of other people say similar things.
I do not say "This is a good thing. I'm sure that now that Failed_Exchange_1001 has failed people will finally learn to hold their own coins." I don't think I've heard many people suggest that.
Although this is the crypto realm which makes clawbacks harder. Usually when one of these exchange scams collapses you'll get a news story about how "unknown hackers stole everything" right afterward.
Who says it was lost? I suspect quite a few of these 'hacks' are inside jobs to take coins from the general public and move them to the founders/owners/employees of exchanges.
Yes, that's a pretty harsh accusation to make, but there is plenty of evidence that this happens with some regularity and the number of instances is high enough to make that claim. And it will continue as long as gullible people place 100's of millions in unsecured accounts without oversight.
Who knew that regulatory oversight was a good thing?
I'm not positive on crypto in general, but they seem to have run of of their own money (capital) and not their customers' money. I.e. they didn't lose their customers' coins. Actually, it seems that they have never held them anyway. So it's not like a bank crash.
The service seems to have been making it possible for people to sell their coins directly to one another. (Crypto exchanges hold your crypto and don't do an actual transaction through the block chain until you withdraw what you have. Though they could still guarantee not losing your coins if they go bankrupt...)
This is what they said about it:
> Are my funds safe?
> We don’t hold customer funds – at the time of the trade, we send the cryptocurrency directly to your wallet. If you need to execute a trade at this time, other platforms can facilitate this.
A centralized cryptocurrency exchange failed because they gambled away their reserves and suffered a bank run. Nothing to do with the underlying blockchain technology, just good old unregulated banks screwing over everyone.
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