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But why focus on the cryptocurrency portion of what happened when what happened first was all fiat based? A single person controlled the transfer instructions

But why focus on the cryptocurrency portion of what happened when what happened first was all fiat based? A single person controlled the transfer instructions via email for a $150M insurance transfer. By falsifying the email instructions for the fiat transfer $150M was sent directly to his personal account (no red flags there). Then he was able to transfer $150M from his personal account to coinbase (no red flags there). Why is your focus on the coinbase conversion from fiat to Bitcoin?

GauntletWizard 5y ago
Because the fiat was easily recoverable in the traditional financial system. If they had not caught the guy, or he had already moved the BTC to a mafia-run account, not one he still controlled, it could be lost forever - The great 'benefit' of BTC is that the government has a hard time seizing it.
- lazide 5y ago
  Yet they seem to have had no trouble doing so in this case?
- throwawaycities 5y ago
  You do realize financial fraud within the traditional financial system preexisted cryptocurrency right?
  - user-the-name 5y ago
    Yes, and there is tons of hard work being put into it all the time to stop it. This does not happen in crypto.
    - throwawaycities 5y ago
      Hard work to stop it? There was a global insurance company that sent an international wire, at least two banks with multiple transactions, and coinbase which is a KYC compliant publicly traded company. Despite ample opportunity, no one stopped this, rather they all facilitated it. This all originated from an email containing fraudulent wire instructions, trying to pin all this on cryptocurrency is less sound than blaming email. Despite all the deflection, law enforcement was able to recover the Bitcoin. Contrary to your point law enforcement and regulators alike have successfully brought legal actions (civil) and prosecutions (criminal) in the blockchain space just as they have against traditional institutions. The insurance company, banks, and coinbase are all to happy cryptocurrency was involved at some point so they can do some magic hand waving, and blame cryptocurrency. I would ask why bother, but obviously it’s a successful PR campaign to excuse their own ineptitude.
- ryanlol 5y ago
  > Because the fiat was easily recoverable in the traditional financial system This is a downright lie, I’m not sure why people keep repeating it. Doesn’t stand to the least bit of scrutiny, BEC schemes are stealing billions and billions via the traditional financial system. Once that money gets sent overseas, nothing is easy.

GauntletWizard 5y ago

Because the fiat was easily recoverable in the traditional financial system. If they had not caught the guy, or he had already moved the BTC to a mafia-run account, not one he still controlled, it could be lost forever - The great 'benefit' of BTC is that the government has a hard time seizing it.

lazide 5y ago
Yet they seem to have had no trouble doing so in this case?
throwawaycities 5y ago
You do realize financial fraud within the traditional financial system preexisted cryptocurrency right?
- user-the-name 5y ago
  Yes, and there is tons of hard work being put into it all the time to stop it. This does not happen in crypto.
  - throwawaycities 5y ago
    Hard work to stop it? There was a global insurance company that sent an international wire, at least two banks with multiple transactions, and coinbase which is a KYC compliant publicly traded company. Despite ample opportunity, no one stopped this, rather they all facilitated it. This all originated from an email containing fraudulent wire instructions, trying to pin all this on cryptocurrency is less sound than blaming email. Despite all the deflection, law enforcement was able to recover the Bitcoin. Contrary to your point law enforcement and regulators alike have successfully brought legal actions (civil) and prosecutions (criminal) in the blockchain space just as they have against traditional institutions. The insurance company, banks, and coinbase are all to happy cryptocurrency was involved at some point so they can do some magic hand waving, and blame cryptocurrency. I would ask why bother, but obviously it’s a successful PR campaign to excuse their own ineptitude.
ryanlol 5y ago
> Because the fiat was easily recoverable in the traditional financial system This is a downright lie, I’m not sure why people keep repeating it. Doesn’t stand to the least bit of scrutiny, BEC schemes are stealing billions and billions via the traditional financial system. Once that money gets sent overseas, nothing is easy.