9 ms·

This might as well be a scam created by the CEO himself. I mean, who in this 'crypto world' would be stupid enough to use the same, previously compromised, pass

This might as well be a scam created by the CEO himself. I mean, who in this 'crypto world' would be stupid enough to use the same, previously compromised, password on all his accounts? P.S. there was a story on reddit (can't find it now unfortunately) about how the attackers tried to deposit the money to Bittrex but luckily someone alerted them and the exchange froze the account. So there is still some hope that funds will be returned.

mhluongo 9y ago
Why would he do that when he'd make more on the actual token sale?
- otheotheothe 9y ago
  getting 500k from a stupid hack or 30mio without...ur theory doesnt make any sense.
- tstyle 9y ago
  The profit from the token sale goes into a foundation setup to oversee the project, not the founding team's pocket.
  - koolba 9y ago
    > The profit from the token sale goes into a foundation setup to oversee the project ... [truncated] ... that is controlled by the founders and could presumably be used for whatever they'd like. The usual approach is to create two companies. One a shell to own the ICO itself, and the second a tech services company that does development for the shell corp. So it ends up something like: "We definitely need the expertise of ICO founder Mr. X. Let's hire his consulting company to update the CSS on our web page at $1,000/hour..."
    - sillysaurus3 9y ago
      This is the main reason the traditional VC model works so well. You can't get rich unless the VC's make money.
      - omarchowdhury 9y ago
        You're kidding right? Founders/employees take "money off the table", even if the companies haven't generated a cent in profit.
        vkou 9y ago
        Employees and founders typically can't sell shares (Except to the VCs, at a price the VCs set) until the company goes public, or is wildly successful. They do get paid salaries, but undergo audits... To make sure that the 10 million dollar round didn't go straight to the CTO's Bahaman yaht fund. These audits are typically not done by the founders. With an ICO, all bets are off. There's no reporting requirements, the founders hire their own bookkeepers, and the equity holders have no rights with respect to the governance of the firm.
        omarchowdhury 9y ago
        You seem to be positing an absolute: that an ICO can't behave transparently by nature. Which isn't true. ICO and transparency aren't mutually exclusive.
        vkou 9y ago
        No, but there's a huge difference in the amount of oversight token holders have on an ICO, and the amount of oversight that VCs have on a startup. It's certainly possible to structure an ICO in such a way that token holders will get board seats, proper auditing, etc, but I've yet to see one that is.
- will_brown 9y ago
  Well he just walked away with $500k and got more press than he could have ever paid for. I've never heard of Enigma before today, hell I still don't have a clue what they are going to actually do besides an ICO, but I know they have just implemented best practices security and it's a safe bet to make money. I think PG calls this a submarine.
  - quoquoquo 9y ago
    > got more press than he could have ever paid for This is very clever. When the theft loss is dismal compared to the money raised, it only gets more press and more people buying the coin!
- deleted 9y ago
  [deleted]
pavel_lishin 9y ago
> who in this 'crypto world' would be stupid enough Never attribute to malice what can be explained by stupidity, and never underestimate just how stupid a person can be.
- DINKDINK 9y ago
  Hanlon's Law
  - jballanc 9y ago
    First part is Hanlon's Razor, second part is Einstein: > "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
- crypt1d 9y ago
  Honestly, I tried really hard to attribute this to stupidity. But this level of stupidity and negligence is really beyond my understanding.
  - 659087 9y ago
    Then you haven't spent nearly enough time reading the posts in cryptocurrency forums. It wouldn't take more than a couple hours of skimming to completely recalibrate your expectations.
prawn 9y ago
It might be that there's a paralysis amongst many people in choosing a password safe and then starting to use strong, unique passwords with each account. What do you recommend to your parents and family, for example? I use 1Password, but do people with more basic requirements than team/client password storage feel that they can justify a paid service?

mhluongo 9y ago

Why would he do that when he'd make more on the actual token sale?

otheotheothe 9y ago
getting 500k from a stupid hack or 30mio without...ur theory doesnt make any sense.
tstyle 9y ago
The profit from the token sale goes into a foundation setup to oversee the project, not the founding team's pocket.
- koolba 9y ago
  > The profit from the token sale goes into a foundation setup to oversee the project ... [truncated] ... that is controlled by the founders and could presumably be used for whatever they'd like. The usual approach is to create two companies. One a shell to own the ICO itself, and the second a tech services company that does development for the shell corp. So it ends up something like: "We definitely need the expertise of ICO founder Mr. X. Let's hire his consulting company to update the CSS on our web page at $1,000/hour..."
  - sillysaurus3 9y ago
    This is the main reason the traditional VC model works so well. You can't get rich unless the VC's make money.
    - omarchowdhury 9y ago
      You're kidding right? Founders/employees take "money off the table", even if the companies haven't generated a cent in profit.
      - vkou 9y ago
        Employees and founders typically can't sell shares (Except to the VCs, at a price the VCs set) until the company goes public, or is wildly successful. They do get paid salaries, but undergo audits... To make sure that the 10 million dollar round didn't go straight to the CTO's Bahaman yaht fund. These audits are typically not done by the founders. With an ICO, all bets are off. There's no reporting requirements, the founders hire their own bookkeepers, and the equity holders have no rights with respect to the governance of the firm.
        omarchowdhury 9y ago
        You seem to be positing an absolute: that an ICO can't behave transparently by nature. Which isn't true. ICO and transparency aren't mutually exclusive.
        vkou 9y ago
        No, but there's a huge difference in the amount of oversight token holders have on an ICO, and the amount of oversight that VCs have on a startup. It's certainly possible to structure an ICO in such a way that token holders will get board seats, proper auditing, etc, but I've yet to see one that is.
will_brown 9y ago
Well he just walked away with $500k and got more press than he could have ever paid for. I've never heard of Enigma before today, hell I still don't have a clue what they are going to actually do besides an ICO, but I know they have just implemented best practices security and it's a safe bet to make money. I think PG calls this a submarine.
- quoquoquo 9y ago
  > got more press than he could have ever paid for This is very clever. When the theft loss is dismal compared to the money raised, it only gets more press and more people buying the coin!
deleted 9y ago
[deleted]

pavel_lishin 9y ago

> who in this 'crypto world' would be stupid enough Never attribute to malice what can be explained by stupidity, and never underestimate just how stupid a person can be.

DINKDINK 9y ago
Hanlon's Law
- jballanc 9y ago
  First part is Hanlon's Razor, second part is Einstein: > "Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
crypt1d 9y ago
Honestly, I tried really hard to attribute this to stupidity. But this level of stupidity and negligence is really beyond my understanding.
- 659087 9y ago
  Then you haven't spent nearly enough time reading the posts in cryptocurrency forums. It wouldn't take more than a couple hours of skimming to completely recalibrate your expectations.

prawn 9y ago

It might be that there's a paralysis amongst many people in choosing a password safe and then starting to use strong, unique passwords with each account. What do you recommend to your parents and family, for example? I use 1Password, but do people with more basic requirements than team/client password storage feel that they can justify a paid service?