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I had hundreds of Bitcoin on Coinlenders up until very recently when they switched to a "demo" legal-workaround that was legally terrible and childish. Coinlen

I had hundreds of Bitcoin on Coinlenders up until very recently when they switched to a "demo" legal-workaround that was legally terrible and childish. Coinlenders is a sister site to Inputs that share the same wallets. Coinlenders funds are being re-distributed to Inputs wallets. I obviously made a good decision to leave Coinlenders when I did as Coinlenders users are going to get perhaps 40% of their invested amounts back. What really should happen is the owner (Tradefortress on BitcoinTalk) Should use his own massive stash of Bitcoins to compensate all his users.

nwh 13y ago
Looks like they are - https://blockchain.info/address/1GLadosEkeAsLReqS3yQ51E1R3wVtbJCDF https://blockchain.info/address/1GLadosEkeAsLReqS3yQ51E1R3wV...
tempestn 13y ago
I don't know, $1.1M is a lot of money. If someone stole a million dollars from my company, I don't know if I'd be rushing to reimburse it with personal funds (assuming I even could), however bad I felt for the users. That said, if I recall correctly, one case where the corporate veil can potentially be pierced in a lawsuit is negligence. IANAL, but maybe users would have a legitimate case against personal funds, assuming keeping a large percentage of deposits online was found to be negligent. It'd obviously be an incredibly complicated and expensive class action suit if it were to happen though. Also it would probably mean trying to bankrupt a guy who just got hacked and lost his company...
- prophetx10 13y ago
  And there you have it... if you were registered with a regulator you would have insurance and have had put up a multimillion dollar bond in some cases for a scenario were YOU screw up.
- makomk 13y ago
  Well, the site owner apparently promised to reimburse any deposit losses with his own funds back when he was trying to convince people to deposit money on the site: https://bitcointalk.org/index.php?topic=283756.msg3505423#msg3505423 https://bitcointalk.org/index.php?topic=283756.msg3505423#ms...
  - tempestn 13y ago
    Ah, that's a bit different then. Thanks.

nwh 13y ago

Looks like they are - https://blockchain.info/address/1GLadosEkeAsLReqS3yQ51E1R3wVtbJCDF https://blockchain.info/address/1GLadosEkeAsLReqS3yQ51E1R3wV...

tempestn 13y ago

I don't know, $1.1M is a lot of money. If someone stole a million dollars from my company, I don't know if I'd be rushing to reimburse it with personal funds (assuming I even could), however bad I felt for the users. That said, if I recall correctly, one case where the corporate veil can potentially be pierced in a lawsuit is negligence. IANAL, but maybe users would have a legitimate case against personal funds, assuming keeping a large percentage of deposits online was found to be negligent. It'd obviously be an incredibly complicated and expensive class action suit if it were to happen though. Also it would probably mean trying to bankrupt a guy who just got hacked and lost his company...

prophetx10 13y ago
And there you have it... if you were registered with a regulator you would have insurance and have had put up a multimillion dollar bond in some cases for a scenario were YOU screw up.
makomk 13y ago
Well, the site owner apparently promised to reimburse any deposit losses with his own funds back when he was trying to convince people to deposit money on the site: https://bitcointalk.org/index.php?topic=283756.msg3505423#msg3505423 https://bitcointalk.org/index.php?topic=283756.msg3505423#ms...
- tempestn 13y ago
  Ah, that's a bit different then. Thanks.