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If you’re seeing delays, get out now. Don’t think about it. Pull as much money as possible, out, now. The exact same thing happened at Gox. I did all kinds of
by sillysaurusx 4y ago
If you’re seeing delays, get out now. Don’t think about it. Pull as much money as possible, out, now.
The exact same thing happened at Gox. I did all kinds of mental rationalizations. Oh, they’re too big. Oh, failure was unlikely.
I managed to siphon out 7 BTC. Then I traded it 2:1 with some fellow from IRC for his BTC locked up in Gox. Woo, I was going to make a 14 BTC payday.
Nope. In fact, trading was still open on the exchange. I took a risk with that goxcoin. When the dust settled, I was left with 7.76 BTC that I couldn’t access. It’s still there. That was almost 10 years ago.
Don’t make my mistake. The very first sign that there was a problem was delays, followed by transactions over a certain amount not processing. People seem to be reporting both.
- scoofy 4y agoAm I watching a bank run in real time?
- autokad 4y agoyou are seeing a chapter in the history books in real time. like Enron stuff
- pjc50 4y agoThe closest real world analogy is probably https://en.wikipedia.org/wiki/MF_Global https://en.wikipedia.org/wiki/MF_Global : same story of illegally transferred client funds from what should have been a plain custodial brokerage.
- djbebs 4y agoExchanges cannot get bankrun on. What you're watching is fraud being revealed.
- solumunus 4y agoOf course they can if they're running on fractional reserves AKA fake liquidity. I don't think there is any regulation against them doing that.
- oldgradstudent 4y agoIn its terms of service, FTX was supposed to hold the customer assets at 1:1 ratio. Not doing so is fraud, and there's already regulation against fraud.
- lupire 4y agoIt's totally illegal and the SEC is chatging everyone they can reach. But most are out of reach, because they are outsdt US and the Presidents refuse to use the military to defend USAns against finacial warfare.
- w23j 4y agoSo-called crypto "exchanges" often function as a mix of exchange, broker-deal and bank.
- eastern 4y ago100%. People are being fooled by the word Exchange. It makes them think that this is the same category as NYSE or NASDAQ. Exchange should be a sort of a reserved word, like bank.
- Bud 4y ago
- lupire 4y agoIt is. But in the real world there is no compiler to prevent misuse. There is only a very lazy and incomplete runtime checker.
- _glass 4y agoEven compiler is kind of a misused word though...
- sweetbitter 4y agoRuntime checker as in the guys who are eager to correct the terminology? Hahahaha
- matheusmoreira 4y agoThey absolutely can if they operate like banks with a fractional reserve. All of them do, they cannot resist the temptation to "efficiently allocate" the huge amount of money they are sitting on.
- lupire 4y agoThat's what the fraud is.
- echelon 4y agoWill this contagion spread further? Without regulation, any crypto company could be doing this. Is Coinbase at risk? This is remarkable to watch unfold.
- Hamuko 4y agoI don't really see a reason to be any more trusting in Coinbase than in FTX, since as far as most people were concerned, FTX was a completely reputable company just a month ago. Well, as reputable as crypto companies go anyways. And now we have reports that FTX had a backdoor to "alter the company's financial records without alerting other people, including external auditors". https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/ https://www.reuters.com/markets/currencies/exclusive-least-1...
- deleted 4y ago[deleted]
- julianeon 4y agoWell, for one thing, Coinbase has a board, and FTX did not. They also had no CFO. They were not “completely reputable” by any reasonable standard; it’s just that no one cared at the time.
- CaptainZapp 4y ago> Well, for one thing, Coinbase has a board, and FTX did not. So did Enron.
- nibbleshifter 4y agoJust listening to the bossman of FTX in interviews and reading about him was enough to make me swerve anything he touched. Seemed like a shop of cowboys.
- bagels 4y agoFried?
- silisili 4y agoSorry that happened to you. I'd argue the time to get out passed long before delays. The time to get out is when a competitor has delays(if you're so lucky). I remember reading and studying Celsius vs Voyager for about a month before I put low 5 figures into Voyager. Hey, free money right? Then Celsius hit snags, and people were -still- recommending Voyager. I noped right out and withdrew it all. What do you know, a couple weeks later Voyager suspends all withdrawals. I believe I have like 9 dollars tied up still with them, because I keep getting weekly updates in their 'plan.' I do feel for people who lost more than I put in, but at some point you have to expect people to know money isn't free and the gravy train doesn't last forever.
- mjburgess 4y agoSince all of these systems are negative-sum, in almost all cases, the majority lose more than they put in. That's how these scams work. I would discourage everyone from developing the apetite for "free money" in these cases, because it isnt free. You were just lucky enough to be early in the pyramid scheme which ends with the vast majority losing everything. It was their cash you withdrew, that's the source of your "free" money. If people want to know why these scams are so common, its because they work. People early-in, early-out extract money from the rest. Nevertheless, in almost all cases, by the time you hear about the opportunity, you're too late to scam people. If nothing else, at least presume this. (which is the anti-dote to FOMO: by the time you feel FOMO it's too late, you'll be the dupe)
- lordgrenville 4y agoYes, or more bluntly: if you identify something as a Ponzi but are able to get in and out fast enough to profit, that is stolen money and you are as culpable as the original founders.
- themihai 4y agoHa ha ha! Nice try!
- Clent 4y agoIsn't Mt Gox in the process of paying based on later found coins? A fraction of that total is is worth several times more than the USD value of BTC at the time.
- primax 4y agoThey will after January 2023. And yes... bitcoin has gone up a lot in that time. That doesn't mean the creditors are happy about their crypto being stuck on a bankrupt exchange for almost a decade. I have a small fortune in the civil rehabilitation proceedings. Since mtgox went down, I've since met my wife, got married, had children, started a Masters, finished a Masters, and bought a house. Having access to my crypto at any point during that period would have been really nice.
- inDigiNeous 4y agoDo you happen to know if there is any way to apply for this process later? I had tens of bitcoins when MtGox went down. But I have no proof of the transaction or even a proper memory of my account name, and I missed their stupid deadline for applying for the payback program.
- otoburb 4y agoYou can try by contacting the official support email (support@mtgox.com), but I believe you have missed all deadlines to register as a creditor.
- inDigiNeous 4y agoThanks, yeah I think so too..
- primax 4y agoThe entire mtgox database was leaked and was googleable, with real names. You should be able to find yourself in it. I'm not sure you can still get approved as a creditor but have a go.
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- candiddevmike 4y agoBut Matt Damon told me fortune favors the brave
- jcpham2 4y agoThanks for sharing this. I remember back on IRC when folks were buying and selling mtgox debt accounts. I never even logged in or filed a claim or took a screenshot or anything- just wrote it off