Mt. Gox. Bitcoin Settlement Deadline Pushed to October 2020
Mt. Gox. Bitcoin Settlement Deadline Pushed to October 2020
Twice burned - How Mt. Gox’s bitcoin customers could lose ...
Mt. Gox. All about cryptocurrency - BitcoinWiki
The History of the Mt Gox Hack: Bitcoin's Biggest Heist
A brief history of Mt. Gox, the $3B Bitcoin tragedy that ...
'Satoshi' lost bitcoins at Mt. Gox? -- Page 28: "Dr. Wright, as the major shareholder no longer being able to provide financial accommodation to the Company, due to the collapse of the Mount Gox Bitcoin registry where we understand Dr. Wright had a significant exposure." (ref. Koen Swinkels)
'Satoshi' lost bitcoins at Mt. Gox? -- Page 28: "Dr. Wright, as the major shareholder no longer being able to provide financial accommodation to the Company, due to the collapse of the Mount Gox Bitcoin registry where we understand Dr. Wright had a significant exposure." (ref. Koen Swinkels)
How long to sell bitcoins and receive USD from Mount Gox?
I was wondering how long it takes to sell bitcoins and receive the value in my bank account before I fully invest myself into using Mount Gox. Basically, if I have 10 BitCoins in my BTC wallet (using blockchain) how long will it take before I have the equivalent value in dollars in my bank account. edit Thanks for the responses, but the experiences seem to differ...does Mount Gox have anything official? Also, what about BTC-E?
This post may not be so popular lol. But I'll tell you what you should hear. One of the big pushbacks I have gotten on reddit is over the banking secrecy act. I have been repeatedly told that I am making shit up or being conspiratorial. This is very very foolish of this community. The statements and releases were in a document released by the FATF. I read it. It's right there. It's in the document. They've come right out and said exactly what they intend to do, and have told exchange CEO' "that's not our problem you WILL find a way to implement this". I also follow the SEC and CFTC policy and press release strongly, and it is equally hostile and captured. It doesn't matter if a few people in the agencies are well intended. They don't call the shots. They are shadow regulatory industries controlled by people we will never see. The rich obviously. Dupont, Cargill, etc. The bitcoin community has been deeply in denial about numerous issues pointed out. It has become a religion, incapable of receiving critique. -Blind trust in Block stream -Blind trust in Chinese miners and wallstreet institutional mining -Blind trust in centralized exchanges -Blind trust in the venture capital token M.O -Blind trust in the idea of 'STO" security tokens sanctioned and graced by banks/regulators -Blind trust in derivatives controlled by regulated bodies that can impose fractional reserve -Blind trust in the meme of an ETF If this community was far more educated in history and political economy and the US foreign policy, you would never trust these regulated wallstreet instruments, you would never trust a rubber stamp. I mean think about it, how many people in this community are hoping for Wallstreet and regulators to pump their bags. Because that has become the meme. They believe that the government approval and integration into the financial economy is going to pump their bags. How's that working out? We have less commerce acceptance, less adoption, less users with a thousand dollars in their wallet, than a year ago. The belief that bitcoin can exist in a vaacuum and bubble, that it can exist without decentralized infrastructure at the mercy of centralized infrastructure in a hostile environment and become mass adopted by nations of people is delusional. It hasn't worked in a decade. Bitcoin is a hobby horse for geeks, speculators, and a revenue stream for centralized wallstreet and financial institutions globally. It is a proxy of bitmain, of these other institutions, and is becoming more and more centralized. The gini coeeficient of bitcoin dwarfs fiat. And the problem *is not bitcoin* the problem is the community believing in these memes and not learning from economic history in antiquity and not building the infrastructure outside the states control and forcing the state into diplomacy. Bitcoiners are failed anarchist, they don't know how to politically represent themselves, they aren't wobblies, they aren't like classic leftist who forced these concepts onto the gilded aged imperialist western republics, that forced them to not send kids to work in coalmines for 12 hours a day. We aren't politically commanding. The banking secrecy act is a extinction level event for crypto. Will bitcoin survive? Of course? But it's going to set us back a decade. It's going to send us back to the stone age. And we are at a *profound* risk of the main chain breaking off and becoming the pseudo banking state corporate nexus geofenced kyced bitcoin with backdoored nodes and backdoored hardware wallets. The statist wont break bitcoin in half, we will. We will out of desperation after they sully it so severely that we have no choice but to hard fork it into a original version that can protect itself against the BSA. You say we won't but we will, when they cripple the global south's access to it, and they cripple the price, you will have your braveheart mercy moment, and the og cypherpunk will kick the bucket and pull the trigger. What has to be done will be done. Centralized exchanges are completely incompatible with cypherpunk and anarchism and the white paper. We've tolerated CEX for a decade. Not only are governments a threat, but we will be continually crippled by Quadriga CX failures, Cryptopia, and Mount Gox failures. Because of toxic maximalism and toxic attitude towards building the fucking infrastructure to avoid this. The mainstream developers won't do it because they can't make any money. This will be a sacrificial act to build this system, just like Satoshi. The current DEX system is like the 1960's darpa intranet. That is it. That's why it sucks. It's not the internet of DEX, it's not. And making the internet of DEX is really, really, really fucking hard bleeding edge computer science. If we want global adoption we need an internet, not an intranet. Having the liquidity of DEX divided into intranet is why we continue to rel on CEX. You want to get rid of the CEX, turn the fucking intranet into an internet, into an interchain. Stop relying on companies and ICO's and 1000 tokens for 1000 things, build the actual backbone. Support the developers. Pay your fucking developers. Stop calling everything a scam and everything vaporware. The internet isn't a fucking vaporware scam, so neither is the interchain. Maximalism is ludditism. Crypto is for the global south, it's for emancipatory politics and independence, for the 99.99%, not the .01%. If you believe otherwise, and want you're "Citadel", Fuck You. Seriously. Read some political economy. Read Ellinor Ostrom, Bestiat, Spooner, Proudhon, etc. Crypto is suppoose to be a public good and a form of open source economy, not a recreation of tyranny, hierarchy, economic centralization, and worse yet just another banker shitcoin debt scam interest rate scam, which is what they are treating it and regulating and profiting off of it as.
Quickly and securely own your private keys in long term cold (offline) storage for the top 30 altcoins listed at coinmarketcap.com (instead of storing them on the exchanges), and extract each key/address string to store in your OWN way, rather than in numerous disparate wallets which each operate differently and may expect you to store and/or remember secondary files/passwords etc. A picture is worth a thousand words: https://i.imgur.com/8xiVMww.png
I've invested in so many altcoins now that I've kinda lost count, and it's the easiest thing in the world to keep them on the exchanges, especially if your time is limited. But as we've seen with Mount Gox and more recently BitGrail, exchanges can fail and lose your funds. It turns out hardware wallets and multi-coin wallet apps don't support many of the major crypto-currencies (for example, the Ledger Nano S only supports 12 out of 30, and Coinomi only 11/30), and are by no means guaranteed secure either. For me personally, I didn't want all my coins strewn across numerous apps and wallets - I'd rather have them all in one place.
A LOT of hard work has gone into this. If you find this useful, feel free to donate at the current crypto locations (if you'd prefer to donate with another coin, just PM me, and I'll create one with my own instructions!):
Upthinity - Everyone transfers money. Whether you want to move money from one bank to another, send money to a relative abroad, or receive money from a client that lives in a different country, you’ve probably dealt with some of the common frustrations.
Before we can talk solutions, we need to understand the problem. We need to know why it happens and what drives it. Otherwise, the answer won’t do a good enough job. Do these sound familiar?
Are Big Opportunities Passing Me By?
Fear, uncertainty and doubt (FUD) run rampant in the crypto space. Vocal enthusiasts and equally-loud skeptics fight in the forums and on the news while speculators try to make a quick buck. When Bitcoin first came out of the shadows, most were skeptical3 . They had good reason to be -- the financial market had just suffered a huge hit and this would-be solution seemed a little too good to be true. Plus, it was unproven. But as innovators began to create applications and build other blockchains, interest grew. The early crypto adopters who got in the market with Bitcoin for cents to the dollar turned out to be right. But if FUD kept consumers out at the start, then Fear Of Missing Out (FOMO) drove others to take reckless risks. And as crypto currencies sped towards the top in 2017, the FOMO got worse. The antidote to FUD and FOMO is the same -- high-quality, relevant information seamlessly delivered in your personalized feed. We need an easy way to access up-to-date, reliable information about crypto-currency and the blockchain universe that’s expanding. Sources like Cointelegraph and CoinDesk are a great start, but we need consistent content and, ideally, we need it all in one place so we can easily compare and contrast different opinions.
Are My Assets Really Safe?
As new technology develops, we worry about how safe it is. The stories of consumers logging in to check their crypto balances only to discover that the platform or wallet they use has been hacked or looted doesn’t help. And when we remember Mount Gox, things just get sour. Because the space is still new, best practices haven’t been firmly established yet. And as interest in the crypto space grows, many trading platforms are under-prepared with slow customer service and poor response rates. These less-than-ideal conditions leave users feeling uncertain and unwelcome. That’s why we need easy-to-use, optimized platforms that are both user-friendly and safe. Platforms that make it easy to know exactly what you need to do to keep your data, and money, as secure as possible.
Mt. Gox suspended withdrawals in US dollars on June 20, 2013. The Mizuho Bank branch in Tokyo that handled Mt. Gox transactions pressured Mt. Gox from then on to close its account. On July 4, 2013, Mt. Gox announced that it had "fully resumed" withdrawals, but as of September 5, 2013, few US dollar withdrawals had been successfully completed Customer complaints about long delays were mounting as of February 2014, with more than 3,300 posts in a thread about the topic on the Bitcoin Talk online forum On 7 February 2014, Mt. Gox halted all bitcoin withdrawals A poll of 3,000 Mt. Gox customers by CoinDesk indicated that 68% of polled customers were still awaiting funds from Mt. Gox. The median waiting time was between one and three months, and 21% of poll respondents had been waiting for three months or more On 20 February 2014, with all withdrawals still halted, Mt. Gox issued yet another statement, not giving any date for the resumption of withdrawals On 24 February 2014, Mt. Gox suspended all trading, and hours later its website went offline, returning a blank page. Replace Mt Gox with QuadCX and what do we have here? Anyone want to bet the website is going to go offline in a few days?
Who Will Win in 5 Years? Centralized or Decentralized Exchanges?
Over the last week or so we've seen a number of market events that validate the need for decentralized exchanges, including: -Mt. Gox 2.0, which lays bare the extreme liquidity problem we have with the Bitcoin (and other altcoins) market. -Continued frustration with the link between BTC/ETH and altcoin prices: Decoupling could be best for the overall health of the market -Government Crack Down & Control: Regulatory concerns and issues continue to mount. Some welcome additional regulation while others say it' contrary to everything cryptocurrency is about. Right now, decentralized exchanges (DEXs) are maturing and (I think) will become increasingly popular. They offer numerous advantages, including: -A true decoupling of BTC/ETH from altcoins: Exchange any coin for any other coin via atomic swaps or intermediary coins (like Stellar, Bancor, etc.). (Yes!) -Privacy: No KYC/AML requirements. There are no limits on withdrawals, lower fees, and no need to give up your privacy to third parties. (Most of us in crypto want to transact in peace without giving up our identities or exposing ourselves to bad actors. We all know centralized databases with sensitive information are subject to attack on a daily basis.) -Market freedom and power to the little person: No issues with "security tokens" and ICOs. An increasing number of people want to stake, earn dividends, etc. from their crypto investments. I anticipate that in the future, regulatory pressure will make exchanges like Bittrex, Binance, etc. refuse to or de-list any token that's deemed a "security" by any government.) The danger is that with regulators seeking to crack down on tokens as securities, retail investors could be left out of these opportunities. Decentralized exchanges and decentralized ICOs provide another method for anyone, anywhere to investigate and get in on opportunities early (no $1 million net worth requirement). Yes, scams will continue to be a problem, but sometimes it's best to learn from experience. -Security: The Binance API incident would be impossible on a DEX because you control your money, not a third-party (please confirm). Not sure about how bots work on DEXs. -Less Manipulated Markets: I'm not sure if DEXs would solve the problem with whale manipulation or PnD groups, but that would be great if they did. Questions:
Do you believe DEXs will win in the long-term?
How will regulators respond to exchanges that can't be shut down or forced to comply with AML/KYC laws?
Is this argument valid? The centralized exchanges say that most people will go for safety and regulatory certainty + they say DEXs will never be able to offer FIAT. Is this true?
So I was told to take bitcoin down from my synagogue's website tonight
We were probably the first orthodox synagogue in the world to accept bitcoin donations, maybe the first synagogue of any denomination. You could send donations, dues, buy tickets to the annual banquet, high holiday seats, even Matzos. But today I received an email from the synagogue president (on behalf of the board) stating: "with the amount of Bitcoin articles recently in the news... the conclusion I see is that the [synagogue] should not be involved with Bitcoin any longer. Please let me know what steps need to be taken to remove Bitcoin from [the synagogue's] website and if their are any remaining funds owed to [the synagogue] from Bitcoin donations or payments. Once completed we should be finished with Bitcoin. Thanks" I built the synagaogue's website over 10 years ago, when hardly any synagogue had one, certainly not orthodox, and it has led many people to discover us. I fought the board to allow me to integrate PayPal and today it accounts for 30-40% of our donations. I saw bitcoin as a way to continue to be at the forefront of technology and to make it as easy as possible for people to contribute, including an option where 100% of their gift went to the intended recipient instead of a middleman. I never used Mt. Gox. Literally the first thing I heard about Bitcoin, when I first found out about Bitcoin almost a year ago, was to avoid Mt. Gox. To this day I can't fathom how so much money was lost there after so much warning. People have been asking me if I lost money at Mount Gox and I've been smugly assuring them that I'm smarter than that. But today I learned... I got Goxed after all. And so did my synagogue.
Keep in mind whilst reading this, I am one myself. But I feel like these things irk me a bit and make bitcoin folk look fanatical as opposed to forward thinking. -Too many unrealistically cite that Bitcoin will take down big banking. This is not only laughable and unrealistic, but would take half a century to even begin to happen. It also makes one look like a loon to anyone willing to hear a pitch. -Too often bitcoiners attach politics to why they like bitcoin. I do understand that it will probably take a few bold politicians to make bitcoin succeed as a currency, but this board often reads like a chain of ridiculous libertarian conspiracy threads. -The great victories aren't celebrated as much as fear and panic. Square is a great victory, celebrate it. Understand that Bitcoin, the technology and startups and the acceptance of it as a currently in a toddler stage. Lay off the negatives, sit back, watch the infrastructure mount and enjoy it. We will either be a pack of "Itoldyousoers" or look like a colossal bushel of boners. Regardless, we're all along for the ride. -Posting every article mentioning Bitcoin doesn't help perception of those that are new to the reddit. Post thoughtful, well researched ones. Coindesk is fantastic(and reputable) for insiders, but anyone beginning to embrace Bitcoin will not take it seriously. Also, posting articles that incite panic written by people that merely read the wikipedia about Bitcoin is foolish. Self edit, reddit. -Be the forward thinkers that you are. A lot of people have money tied into Mt Gox. Hopefully, they will retrieve set money and all will be fine in the not too distant future. But understand that something that begins unregulated will attract bad people attempting to game a new system. As more responsive and reputable(hopefully US based) companies rise from the large amount of capital tied in, the insolvent or poorly run companies will fizz out quickly. -Warren Buffet is entitled to his opinion. He's one of the greatest investors that's ever lived, but doesn't care for tech stocks or Bitcoin. It's not that it frightens him, he just doesn't understand it in terms of guaranteed profit. Many feel this way at the moment, which is why the market cap has dropped a bit as of recently. Even the bulls are looking like bears. Lay off the guy, he has a different opinion than you or I do. -Have a better understanding off mass adoption. A few ATMs are a good start, but until someone who has never owned a bitcoin can go on his/her phone/computeor atm and acquire one in less than a minute, it won't happen. The atms will hopefully get better and easier to use with time, but the tech surrounding bitcoin needs to improve a great deal before everyone you know embraces it. Try telling someone they have to sign up to a site, confirm their bank, identity and wait for 5 days while they have their debit card in their hand and see which form of payment they choose. We'll get there and I believe in(a few of) the startups popping up, but we're not there yet. When every store has a btc qr code scanner as an option, we've made it. -After trying to explain how it works, explain how useful it could be for migrant workers. Explain how Western Union and their robberies could be quieted by Bitcoin. It may not sell people on purchasing one or getting into it, but it expresses the nature of bitcoin and the freedom it brings. It's a great way of making folks understand. -Be patient. I wrote this with positive intentions. Update: Really enjoying reading all the posts and debates on here. All healthy and none hateful.
The Five Major Problems Plaguing Crypto-Users Before we can talk solutions, we need to understand the problem. We need to know why it happens and what drives it. Otherwise, the answer won’t do a good enough job. Do these sound familiar? Are Big Opportunities Passing Me By? Fear, uncertainty and doubt (FUD) run rampant in the crypto space. Vocal enthusiasts and equally-loud skeptics fight in the forums and on the news while speculators try to make a quick buck. When Bitcoin first came out of the shadows, most were skeptical3 . They had good reason to be -- the financial market had just suffered a huge hit and this would-be solution seemed a little too good to be true. Plus, it was unproven. But as innovators began to create applications and build other blockchains, interest grew. The early crypto adopters who got in the market with Bitcoin for cents to the dollar turned out to be right. But if FUD kept consumers out at the start, then Fear Of Missing Out (FOMO) drove others to take reckless risks. And as crypto currencies sped towards the top in 2017, the FOMO got worse. The antidote to FUD and FOMO is the same -- high-quality, relevant information seamlessly delivered in your personalized feed. We need an easy way to access up-to-date, reliable information about crypto-currency and the blockchain universe that’s expanding. Sources like Cointelegraph and CoinDesk are a great start, but we need consistent content and, ideally, we need it all in one place so we can easily compare and contrast different opinions. Are My Assets Really Safe? As new technology develops, we worry about how safe it is. The stories of consumers logging in to check their crypto balances only to discover that the platform or wallet they use has been hacked or looted doesn’t help. And when we remember Mount Gox, things just get sour. Because the space is still new, best practices haven’t been firmly established yet. And as interest in the crypto space grows, many trading platforms are under-prepared with slow customer service and poor response rates. These less-than-ideal conditions leave users feeling uncertain and unwelcome. That’s why we need easy-to-use, optimized platforms that are both user-friendly and safe. Platforms that make it easy to know exactly what you need to do to keep your data, and money, as secure as possible.
I recently watched a film on Netflix about bitcoin. One of the things that it tried to explain was the block chain "ledger" aspect of bitcoin. Implied that every coins transaction history was completely documented and not able to be hacked. How did the Mount Gox $400 million loss occur. Shouldn't every depositor be able to see what happened to their bitcoins?
I am an XRP fan. However, bitcoin is still king. And I never invested more than I could afford to lose. Bitcoin was created as an alternative to the USD, which is only going to get weaker with time. You shouldn't be thinking, "I'm buying cryptocurrency to get rich and retire in 5 years." You should be thinking, "I'm buying cryptocurrency as an alernative to the USD or my own country's currency." A quick FYI, after the Mount Gox hack (I wasn't around back then), BTC plumetted from over 1,300 USD to 100 or so USD in the course of a week, was it? If we're looking at bitcoin following a similar trend, yet again, then we are expecting it to plummet to around 1900 USD before it really picks back up again. Now then, I am indifferent to whether or not crypto can actually make me a millionaire in USD. What I really care about is whether or not it can misplace mitigate any up and coming financial crisis we may face in the future, or if I can use crypto to out-right purchase a home. EDIT: I am not saying crypto will replace FIAT, I said it five days ago on another sub. evidence here: https://np.reddit.com/XRP/comments/9x7e4d/aside_from_tether_xrp_has_fallen_the_least_of_all/e9q5v3w/
The U.S. regulatory agency, SEC, regularly works with foreign countries governments and regulatory agencies when enforcing laws on foreign companies. There is more than ample case law and literature that will verify this. That does not apply to all, or even most U.S. or other countries laws. Most laws do not give jurisdiction to one country over another. We will use the example of the world famous KimDotCom and his website Megaupload.
As a Non U.S. citizen, the U.S.'s Department of Justice does not have the jurisdiction to send their agents to New Zealand to arrest him for violating US copyright. They must legally have New Zealand extradite him. This is obvious, or should be to most people. Which is exactly why he is still in New Zealand and not in the U.S. either in court or jail. He has been able to fight extradition for the last 6 years, and hopefully that's how it stays. However, there are certain things which does fall under the jurisdiction of foreign countries. I'm not even going to try to list them here as that isn't important.
The most important thing however is how the U.S. extends jurisdiction when they should have absolutely no legal grounds. Specifically this falls under the Dodd-Frank Act. "Under the Dodd-Frank Act, U.S. courts have jurisdiction over claims of securities violations brought by the SEC or DOJ that involve: 1) Significant steps in furtherance of a violation that occurred in the United States even if the transaction took place outside the United States; or 2) Conduct outside the United States that has a “foreseeable substantial effect” within the United States.”
The U.S. has on more than one occasion claimed jurisdiction over a foreign cryptocurrency exchange. Once for a lawsuit against Mt. Gox (Japan) from 2014 which is still ongoing in the state of Illinois in federal court. More details can be found here.
Again last year when the SEC and DOJ sought charges against BTC-e, a Russian Exchange, and it's owner Alexander Vinnik. Accordingly BTC-e's assets including domain, etc. was seized by the U.S. and charged with operating an unlicensed money service business, money laundering, and related crimes. Details of this case can be found here.
We now also have BCC lawsuits happening. Two have already been filed and a U.S. Judge issued an order to freeze their assets, they were provided 10 days to turn them over. If they decide to not do it since they can’t just be forced as the banking system can, they will then face criminal charges; Not just a lawsuit. More information here.
Now you know shit is serious when the U.S. Government acts faster on something than any other time in the last 200 years. Look no further than Tether and Bitfinex. Most exchanges pair the USDT coins and not USD. This is done so foreign exchanges don't have to worry about U.S. banking laws that any company dealing with USD is legally obligated to do but they are still able to pair things against the US dollar which we all see it listed as USDT/BTC. A vast majority of people will never notice nor even give this a second thought. Exchanges do this specifically because using the USD would subject them to U.S. banking laws but since Tether "USDT" is a coin and not money, exchanges don't have to follow U.S. banking laws. This creates an extra layer of protection for exchanges and they are able to operate much easier without accidentally breaking those or other U.S. money-laundering, know your customer, etc. laws; While they are still able to pair coins with USD thanks to the coins being set 1:1 with the U.S. Dollar.
Many in the community remember last year when Bitfinex announced they announced they were stopping all user activity for U.S. citizen accounts. This was done for a very specific reason, and if you research what Bitfinex did after the last hack of $70 million USD, you will understand why. I'm sure a lot of people that weren't around when the hack occurred wouldn't believe what the exchange did to their customers.
Anyway back to subject on hand. Including using the aforementioned way that exchanges protect themselves by pairing with USDT and not USD; Tether further protects itself by separating itself into multiple entities; Tether Limited (“TLTD“) for U.S. citizens, Tether International Limited (“TIL“) for all Non U.S. citizens for the purpose of issuing, use, etc. of the Tether coin. Tether "TIL", Tether "TLTD" and Bitfinex (owned by iFinex Inc.) are incorporated in Hong Kong. Last but not least, and most important. Tether Holdings founded in 2014, and iFinex Inc. are both based in British Virgin Islands. These are the only parts of Tether and Bitfinex that receive real money, actual US dollars, Euro's, Yen, etc.
Any exchange, wallet, etc. that accepts actual money payments dealing with cryptocurrency knows that by accepting real money they must follow AML/CTF laws of whichever jurisdiction that would apply. Hence why most all exchanges pair with USDT and not USD. Furthermore, most people are also aware that the British Virgin Islands, Cayman Islands, etc. are considered tax havens which is where both holding companies are incorporated. There is much more about Tether if anyone wants to look further. Information released in the Paradise Papers links both companies and finally sheds light on the people behind this. It should be easy for anyone following along to see the possible implications. For our purpose, all we need is know how the companies are structured. Which is why the media just reported on January 31st 2018 that the U.S. issued subpoenas to both Bitfinex and Tether.
If you didn't know what company it was that was structured in this way with multiple sister corps, parent corps, locations, etc. Most people would be baffled as to why any company would go through all that trouble. What practical reason could a cryptocurrency company, in a unregulated world, have to do that in the first place? Fraud is rampant and no one seems to ever go to jail. Even if doing the same thing in any other business would likely result in criminal charges. So why would any company go through all that trouble if they had nothing to worry about. Even if their entire goal is to defraud people such as "B-Connect", why would any foreign company dealing with crypto go through that much trouble in such an unregulated market? Number one that is substantially more expensive financially and also much more work that would have to be done. Not including the additional time and cost to hide that stuff
This is where we need to ask ourselves a question. Putting aside any thought of Tether committing fraud or whatever else is alleged. Let's just look at the basic facts: If foreign exchanges, etc. aren't subject to outside laws because they are located in a different country. Why would any of them use a coin in place of real money for pairings? Wouldn't it be easier no matter what to just pair listing against the dollar. USD/BTC or whatever fiat currency is paired against cryptocurrency. That would just create more accounting and unnecessary additional steps to convert crypto to fiat? No business would adopt a model like that if there was not a fundamental need for the extra work/cost/etc.
We first had to ask that question before we can even ask the next one. So if exchanges are protected from foreign country laws just by using USDT. Why would Tether, Bitfinex, "B-Connect" International for that matter, stop doing business with U.S. citizens if they use USDT and are not based in the U.S.? Why would it matter then if they do business with them? Maybe the reason they ensure that no U.S. citizen can do business with them is because U.S. law does still apply to them if they transact with them. By now everyone knows "B-Connect" was a Ponzi scheme, and if you have paid any attention, the U.S. is going after them tooth and nail. Yes "B-Connect" did have U.S. locations however "B-Connect" International which is the holding company of the new "B-ConnectX" is already up and running and is unable to be shut down since US citizens are not permitted to use that service now.
There is a much more serious risk at hand. A risk that will make the 2014 Mt. Gox crime, which destroyed market cap by over 80% and didn’t recover until 2017, look like a weekend robbery at a convenience store. From 2014 until January 2017 a total of 10 million USDT had been created. No one would even question if they had 10 million USD in a bank account to back each coin up. When Well’s Fargo terminated them as a customer at the end of March, start of April, the total USDT supply increased to 44 million. December 1st when the Paradise papers were released 440 million Tether. Apparently within a week subpoenas were issued, that right there should indicate the severity of the problem.
December 31st 2017 supply was well over 800 million USDT. Fast forward a month and the total is 2.2 billion USDT at the end of January 2018 when the MSM finally picks up on it. NYTimes was the first to have an article of the US mainstream news. To add to the horror show playing out in front of all of us Tether is now issuing a new USDT and EURT on the Ethereum blockchain. The 2.2 billion are on the omni layer protocol which on the Bitcoin blockchain. Note: The new ERC20 USDT and EURT are not intended to replace the USDT that are bitcoin based but rather to compliment.
The implications of this reach much further than the cryptocurrency markets. If you are unaware how Market Capitalization works I will simplify this. If the entire cryptocurrency market capitalization is 500 billion that does not mean that the equivalent amount of money has been put into the system. According to a previous report from JP Morgan since 2009 a total of 6 billion $USD actually entered into the cryptocurrency market and that gave it a 300 billion market capitalization. If you want a more detailed explanation of market capitalization you can look here.
Now what does this all mean? What does this have to do with you or anyone else? You might be saying I don’t have any USDT so why do I even need to care or pay attention. Well simply explained, if $6Bn USD can create a 300 billion market cap. $2Bn USD that technically isn’t there could remove much, much more than $2Bn of hard assets and money from the cryptocurrency market.
Tether is acting as if they are the U.S. Federal Reserve without having to guarantee the USD like the Federal Reserve and U.S. government. In the last few months leading up to the recent all time high’s (ATH) many stories came out of people taking out second mortgages so they could invest in Bitcoin. Multinational corporations have become involved. Even governments have either knowingly or unknowingly invested into it. One of the key players here was also a key player in the 2008 global financial collapse. Only a couple things can happen:
1. Tether has 20%-100% of the USDT backed up with US dollars. Everything should be okay except cryptocurrency now has a central bank.
2. They don’t have US dollars to back it up. Exchanges lock the doors as everyone creates a run on the bank trying to get out before or during the crash, investors lose everything, all $$$ in the system is extracted out by Tether. That will have a detrimental effect on global markets and could trigger the collapse of the stock market bubble which will also take out the housing bubble.
No matter what, this is going to be a very painful ride. Even if they do have the money, the US will make sure it doesn’t continue. Chances of them having the $3Bn as one of their insider friends stated are slime to non existent.
On the bright side, we will witness the greatest theft mankind has ever seen.
Last updated: February 02, 2018
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The first major crisis for Mt. Gox came in June 2011, just months after Karpelès took over. Mt. Gox claimed a “compromised user account,” was exploited to make the price of Bitcoin fall from ... Mt. Gox, called "Mount Gox" or simply "Gox", was the most widely used bitcoin currency exchange market from shortly after its inception in 2010 to its insolvency late 2013. The market was closed February 25, 2014 and has since filed for bankruptcy protection in Japan and the United States, after losing 640 thousand bitcoins.. A registrant on Mt. Gox had at least two sub-accounts: one for ... Mt. Gox was one of the biggest cryptocurrency exchanges in the world. The company was based in Tokyo, Japan and was established in July 2010. At its peak, it processed nearly 70% of the transactions that were executed with Bitcoin around the world. The exchange was the subject of an attack in 2014. TOKYO – When Mt. Gox, the world’s largest bitcoin trading exchange, collapsed in early 2014, more than 24,000 customers around the world lost access to hundreds of millions of dollars’ worth ... Mt. Gox. Bitcoin Settlement Deadline Pushed to October 2020. The Tokyo District Court grants the Rehabilitation Trustee in the Mt. Gox case another extension for the submission of the reimbursement proposal. The Trustee, Nobuaki Kobayashi, filed for an extension motion on 30th June, 1 day before the submission date. The court has set 15th ...
Mt. Gox Disappears! Is Bitcoin Finished? - YouTube
How To Create a Mt. Gox Bitcoin Trading Account - Duration: 5:31. Bitcoins Made Easy 2,493 views. 5:31. 12 Year Old Boy Humiliates Simon Cowell - Duration: 5:37. LosGranosTV Recommended for you. This is a brief history of the Mt. Gox exchange. Its history, hacks and impact on Bitcoin and the crypto world. Contact me about crypto business ventures at [email protected] A quick guide on creating a Mt. Gox trading account. We demonstrate creating the account and give brief explanatoins on the trading interface and how to make... Late Monday, the Bitcoin-trading site Mt. Gox went dark, leaving everyone questioning the future of the virtual currency. There have been reports of a securi... 150,000 Mt. Gox Bitcoin won't trigger a correction anytime soon #CryptoNews #Bitcoin Our social contact: https://www.instagram.com/cryptonewsandgames/ https:...