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You lent that money to a shady organization. Once you lent it, it was no longer your property. You then became a creditor of that organization and your coins be
by WoahNoun 7y ago
You lent that money to a shady organization. Once you lent it, it was no longer your property. You then became a creditor of that organization and your coins became their assets. The organizations assets were seized due to systemic criminal activity and they could no longer repay their debts to their creditors. Just like any other financial institution.
Some quote about bitcoin enthusiasts rediscovering the reason for regulations in the financial markets one loss at a time.
- icebraining 7y agoRegulations is what made proverbialbunny lose the money; it would probably not have happened had BTC-e been allowed to continue the alleged criminal activities. Of course, that might be worse for the rest of society.
- WoahNoun 7y agoRegulations and criminal law are two different things. If btc-e were part of a well-regulated financial system, they would have gone through a liquidation process and creditors would have been paid some % on the $ what they were owed. This is what happened with BCCI when it was raided and shutdown for massive money laundering. https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_In... >Just a month later, BCCI's liquidators (Deloitte, PWC) pleaded guilty to all criminal charges pending against the bank in the United States (both those lodged by the federal government and by Morgenthau), clearing the way for BCCI's formal liquidation that fall. BCCI paid $10 million in fines and forfeited all $550 million of its American assets – at the time, the largest single criminal forfeiture ever obtained by federal prosecutors. The money was used to repay losses to First American and Independence and to make restitution to BCCI's depositors.