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Bitcoin vendor website shuts down absconding with $44 million of users' money
Posted on 12/1/13 at 3:09 pm
Posted on 12/1/13 at 3:09 pm
And another btc website to shut down "temporarily" as it works on its software.
Perhaps responding to this news, bitcoin lost over 35% of its value on the btc exchange site "btc-e" in a 12 hour period today, falling from a high of $1,055 to $677 before recovering.
Perhaps responding to this news, bitcoin lost over 35% of its value on the btc exchange site "btc-e" in a 12 hour period today, falling from a high of $1,055 to $677 before recovering.
quote:Forbes - 12/1/2013
Sheep Marketplace, (no kidding) an anonymous online narcotics bazaar that received an influx of users after the shutdown of the popular drug-selling site Silk Road in October, went permanently offline over the weekend, claiming that it had been robbed of $6 million in bitcoins by one of its sellers who found a security vulnerability in the site.
Sheep’s owners have used that theft to justify closing the market without returning the bitcoins stored in the market by users, despite claiming that they would redistribute those coins to users’ “emergency addresses.” Sheep users and other Bitcoin followers on reddit say that the administrators began blocking withdrawals of bitcoins from the site more than a week ago, and may have absconded with as much as $44 million from the site’s users, pointing to a movement of 39,900 bitcoins visible in the public record of Bitcoin transactions known as the blockchain.
Black Market Reloaded (again...no kidding!!!), the current largest anonymous market for contraband online with nearly 7,000 product listings, responded Saturday with a message on its forum for users saying that Black Market Reloaded wouldn’t be able to handle the influx of new customers and sellers, arguing that the Tor anonymity software that hides the identity of the site’s users and owners isn’t designed for such a large user base. On Sunday he followed up by blocking new registrations, closing inactive accounts and notifying users that the site would go offline in around two days.
Whether that shutdown will be permanent still isn’t clear. One administrator on the site’s forums writes that it’s merely working on a new version of the site and is taking the current site offline to focus on building it, with plans to launch in early 2014.
5
Posted on 12/1/13 at 3:21 pm to LSURussian
wait, that's not possible.
Posted on 12/1/13 at 4:17 pm to LSURussian
Wiki will be shortly to calm everyone down.
Posted on 12/1/13 at 6:08 pm to LSURussian
I wish I could just have 1 or 2 of those bitcoins.
Posted on 12/1/13 at 6:30 pm to RebelOP
Wiki says it's easy to buy them. It only takes a few hours.
Posted on 12/1/13 at 8:24 pm to LSUzealot
quote:
Wiki will be shortly to calm everyone down.
Posted on 12/1/13 at 10:16 pm to LSURussian
What site do people on here use to buy Bitcoins? It seems that Coinbase is popular and pretty safe but I'm uneasy linking a bank account to it.
Posted on 12/2/13 at 2:05 am to LSURussian
It should be relatively easy to restore all Bitcoins to their proper owners except for the owners' desires to hide their identities. And just who is going to provide the enforcement mechanism to oversee the process?
Posted on 12/2/13 at 6:12 am to Poodlebrain
I'm not saying this is the case here, but I wouldn't be surprised if many didn't claim theft in the future to avoid taxes being paid.
Posted on 12/2/13 at 8:21 am to C
quote:I would be extremely surprised to see people attempt to claim losses from Bitcoins being stolen as a tax avoidance strategy. Many people who have acquired Bitcoins have done so for purposes of attempting to evade taxes. In order to substantiate a claim of theft, the Bitcoin owner would have to prove ownership of specific Bitcoins. Doing so would open all of that person's activity on the Bitcoin network to scrutiny by the tax and law enforcement authorities. This would expose any illegal activities by the person claiming the theft loss.
I'm not saying this is the case here, but I wouldn't be surprised if many didn't claim theft in the future to avoid taxes being paid.
As such, I think the claims of loss due to theft will be rather few in number.
Posted on 12/2/13 at 9:21 am to LSURussian
quote:
Wiki says it's easy to buy them. It only takes a few hours.
And a few days? to cash out..
Are there success stories where people have sold their lot of btc? Do these exchanges have enough capital to cut you a check for $1MM? What side effects are there to an electronic credit to your bank for that amount?
Posted on 12/2/13 at 9:34 am to Poodlebrain
quote:
This would expose any illegal activities by the person claiming the theft loss.
I don't think the price today is being driven by illegal transaction or any transactions in general other than demand for BTC. So I doubt much scrutiny will come to them.
Posted on 12/2/13 at 9:40 am to Dooshay
quote:I have no idea. I do know that the largest exchange, MtGox, suspended allowing U.S. dollar withdrawals from accounts except for small amounts. That happened a few months ago. I'm not sure if that is still in effect.
Do these exchanges have enough capital to cut you a check for $1MM?
Posted on 12/2/13 at 9:48 am to LSURussian
So it's really easy to convert btc to USD except that you can't do it.
So you can't cash out, you can't buy drugs anymore, but you can make political donations. Noice.
So you can't cash out, you can't buy drugs anymore, but you can make political donations. Noice.
Posted on 12/2/13 at 10:09 am to Dooshay
quote:I'm not saying that.
So you can't cash out,
I said a few months ago MtGox announced it had suspended USD withdrawals. That may have changed since then.
The other exchanges are much smaller than MtGox since MtGox bills itself as having 80% of the btc exchange market.
I don't know if any of the exchanges has the liquidity to pay out $1 million at a time.
The exchange I have book marked, btc-e LINK, which I check every couple of months unless there is some news in the mainstream media about btc, is Russian owned and operated and is headquartered in Russia. It even has a Russian language message board associated with it.
I certainly would not trust them to hold a large amount of my money.
Posted on 12/2/13 at 10:50 am to LSURussian
You think BTC was a good investment, you should check out litecoins (LTC). They have nearly tripled over the past month compared to BTC. Thus the reason why BTC is doomed, IMO. Other systems are coming out that are better and will saturate the market.
ETA: a $1000 invested in LTC in June would be nearly $10k today.
ETA: a $1000 invested in LTC in June would be nearly $10k today.
This post was edited on 12/2/13 at 10:55 am
Posted on 12/2/13 at 5:34 pm to Dooshay
quote:
Do these exchanges have enough capital to cut you a check for $1MM?
As the price keeps skyrocketing, this is the part that keeps bugging me.
At this point, the price is so obscene that there just have to be quite a few "bitcoin multimillionaires". Sure, some may already be rich and have no desire to sell but we've got to have a few college kids or young professionals mixed in there.
Even if they believe the value of the bitcoin is going to multiply by a factor of ten or more yet again, it's odd that they're not dumping, say, twenty percent of their holdings, and locking in a monster profit.
I guess they could be doing that but, if those exchange websites are accurate, the average purchase of a small fraction of a whole bitcoin.
Posted on 12/2/13 at 8:38 pm to C
i have also been looking at litecoin. looks promising.
what i dont understand about bitcoin is what happens when all the bitcoins are bought up?
as more are being produced i only see the price getting higher as the product dries up.
then whats the point to buy a bitcoin for 2k and pay a bill? also you spend 2k and the price drops 2-500 the next day so your screwed.
what i dont understand about bitcoin is what happens when all the bitcoins are bought up?
as more are being produced i only see the price getting higher as the product dries up.
then whats the point to buy a bitcoin for 2k and pay a bill? also you spend 2k and the price drops 2-500 the next day so your screwed.
Posted on 12/2/13 at 9:04 pm to brbowhunter
Think about baseball cards. By the end of the decade I imagine their will be a dozen or so popular electronic currencies and then people will ask why? And the sell off will be epic.
Posted on 12/2/13 at 9:11 pm to Walking the Earth
You have to cash out to make money. Btc will crash and go away before people that back it ever sell.
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