Cryptocurrency Firm Loses Codes and Gets Hacked, Millions Lost

Welcome to The Real News Network. I’m Marc Steiner. Great to have you with us. Bitcoins, cryptocurrency, are all a mystery
to me and to many others. Are they real money? Why should I – why should that be the concern
of hackers? One group known as a group called Alpha – a
huge group apparently, as one article put it – quoting an organization called Chain
Analysis – “is driven by non-monetary goals and means.” But a second, much smaller hacking group that
is known as Beta, is focused only on the money. And they are both brazen about it, apparently. Add to that, as reported in this Fortune article
recently, Gerald Cotten, who owned Quadriga – hope that I said that right – CX – QuadrigaCX
– died in December. The company has $190 million in cryptocurrency
stores inside the company and its computers, as the article points out, has roughly 26,000
bitcoin, 11,000 bitcoin cash, 200,000 LikeCoin, over 400,000 Ether, and other cryptos. But they’re not kept in a public computer,
so neither his widow, nor anyone else seems to be able to access it, and people fear they
could have lost all their investments. So why should we care? What does this mean? What is this cryptocurrency? Why is it important? And what is the real danger associated with
all of these hacking groups that are coming after these companies? Well, to help us sort all this out and all
the vagaries of capitalism to go with it is Bill Black, Associate Professor of Economics
and Law at the University of Minnesota Kansas City, joining us today from Minnesota, and
author of The Best Way to Rob a Bank Is to Own One. Bill, so, as my grandfather would say in his
Yiddish: Nu? What does this mean? And his brother would have responded: Nu? Nu? [laughter] of course. So, what it means is this: These currencies
are not ready for prime time. They are not ready to be currencies. They are not actually used as currency. You can’t go and buy things at the store. And they don’t hold their value, necessarily. They can lose enormous amounts of value. And instead of being safe when you put them
in the closest equivalent to a bank, they’re actually incredibly exposed to being stolen
when you put them into the crypto variant of a bank. And this is so bad, these series of thefts
carried out by these hypothetical groups – I want to be clear. Okay. We don’t know that these groups exist, Alpha
and Beta, and if they do exist we don’t know what they call themselves. But why is it dangerous if there’s not – if
it’s not really money? What does it mean that they’ve hacked into
this place and … Right. So it’s just analytically the – you know,
forensic clues suggest there might be two groups, one of them, as you said, larger,
and one of them relatively smaller, and both of them steal. One of them steals clearly to get rich, and
one of them may also steal to destabilize and to move currency, because every time you
steal successfully, you know, when the news comes out that the value of cryptocurrencies
is going to fall. So if you’ve been betting that the value
is going to fall you can make it fall through your theft, as well. That may be one of the things going on. Now, on top of all those things, you have
to actually typically memorize a computer code. Now how many of us forget our computer codes? All the time. All the time. Well, guess what? That’s what happens to crypto crazies. They forget their codes. And then they can’t get their money, because
the only way you can get it is a code. So there’s actually arisen a private sector
of folks, you know, that are sort of password whisperers. They come and they talk to you, and they try
to divine what kind of code you would have created. And then they, you know, spend some months
or weeks looking for it. And if they succeed, they get 30 to 50 percent
of the proceeds type of thing. All right. So. You have these nice, responsible, Canadian
response to all of this is, well, I’ll be super safe. I won’t put any of the codes online, where
they could be stolen by this hypothetical Alpha and Beta type group. I’ll have it all offline, and the – there’ll
be only one set of key codes, and only I will know it. And that works great, unless you die. [Laughter] And he died. And he died without telling anybody what the
codes were. Even though he had a chronic illness, and
had plenty of time to tell people. He didn’t even tell his wife. Including the wife. And you will note that this happened in December,
and we’re talking in February. And this is just becoming public. Which is to say, people that had – and here
we get flaky again – nearly $200 million. But who knows, because cryptocurrency currency
values vary all the time massively. But anyway, lots of it. Those folks are SOL, or they’ve got bupkis,
to quote your [inaudible], right? When you get there, there ain’t no there
there – type of thing – if you can’t get past the security. So this is insane, but you can see the two
stories are related. He was so worried about the threat of this
Alpha and Beta that he took extraordinary security – security so tight that it may
have destroyed all the value of the cryptocurrencies. And of course I laugh, but this is sad for
the people that have their stuff in this. But they tend to be an interesting subset
of folks, you know, very young, male, could never happen to me-type things. So anyway, do not buy Bitcoins or other cryptocurrencies. Don’t let your aunts, your uncles, your
grandmother buy it. If you have a moronic friend who decided the
way to make a fortune is to sell everything and to buy Bitcoins, get them drunk, I don’t
know. Do whatever it takes. So I mean – it would be like a country song. Don’t let your momma buy cryptocurrency. I mean, so – but what I’m saying is, very
quickly, explain to me just very succinctly, and for our viewers, what the hell is cryptocurrency,
and why do people invest in it? They invested in it for two reasons, and the
two are related. And – and it’s all propaganda about this
and that. So the first is to get rich, of course. For the same reason people invented cryptocurrency. We don’t know who invented Bitcoins and
there – it’s another whole saga – but we know that that person got really rich. How did he get rich, though? How do you get rich from something that doesn’t
exist? Because they allocated to themselves a bunch
of Bitcoin, right at the beginning. So if people are dumb enough to buy tons of
Bitcoin, the value of the the Bitcoins goes up, and they make a fortune. But of course, there’s no there there, like
– Oaklands, the – you know, type of slam – type of thing. So the second thing is it is super – if
you talk to folks, and boy have I – you will hear about it. I will hear about it again after this. It’s a combination of libertarian and secrecy. You know, that the government knows everything
and tracks everything I do. So I’ll take this, and you know, and I’ll
be off the grid. And that’s not true, also, for other reasons
– including [inaudible], by the way. But you know, it – it’s some collection
of those things, plus, of course, the early folks in any bubble get rich. And then the people that come along say whoa,
whoa, what if I had only bought Bitcoin at, you know, day one, even today I’d be a very
rich person. But you know, that’s how bubbles work. So is there a danger – really quickly – is
there a danger here in the hackers themselves, and what they might be honing in on? Or is this something that is – is this for
people who invest in this – in these Bitcoins and cryptocurrency? Yeah, so this is a subset of the population. It’s not going to have any effect on the
general economy, but it does show … This is simply one of the amazing dangers of this
currency, because it isn’t really a currency from a sovereign government. It is exposed to this unique loss methodology. But the bigger story, I mean, the huge losses,
of course, come from the fact that eventually people go, you know, there’s no really ‘there’
there, and then the currency loses 80 percent of its value, and the people that sold everything
to, you know, try to become rich without working, then they suffer enormous losses, as well. Well, this has been – I’ve learned a lot
in our brief conversation here, Bill Black, and-
Always listen to your uncle. Especially if he’s speaking Yiddish. Always listen to your uncle. Don’t buy such a thing. These people – these people are verblandzhet. Right. So, friends, don’t let your friends invest
in cryptocurrency. And Bill Black, thank you once again for joining
us here on The Real News. It’s always a pleasure to talk with you. Thank you. Enjoy the Arctic weather in Minnesota. And I’m Marc Steiner here for The Real News
Network. Thank you all for watching. Take care.

77 thoughts on “Cryptocurrency Firm Loses Codes and Gets Hacked, Millions Lost”

  1. #1 Thank you to the man who had the guts to ask (even though half way through the discussion) "What is Crytocurrency?!" I would really love an astute yet precise answer to that question. Alas, the guest came down with a case of the giggles and no answer offered.

  2. This is probably one of the dumbest videos I’ve ever seen analyzing crypto currency. These two bumbling idiots have no clue what they’re talking about. Look into the ethos and the underlying technology. Compare that to the current Banking system. Show me a cheaper and faster way to move money across the world. I’m ashamed that real news would even put something up like this. U guys better then this…

  3. To all my fellow crypto enthusiasts, keep your crypto's on your own private wallet(s). Never leave them with an exchange.

  4. Sorry I didn't know you disagree with your sentiment on cryptocurrency,
    One it's a new technology if you don't pay attention to the risks involve and don't do your due diligence you get rekt. That's literally every investment.

    Xrp a cryptocurrency is being looked at by the FCC the cftc and are also getting partnerships with big Banks all over the world.
    Bitcoin is used more so as a store of value, wile it has encouraged new types of digital blockchain currencies and or apps.

    There are lots and lots and lots of fraud because it's the wild wild West.

    And yes the price ships a lot but what it can do is a seamless transfer of value from place to place without needing a bank – New York .

    Bakkt from the New York stock exchange, Bitcoin and other cryptocurrency based ETF or futures not sure which.

    Iota being looked at by, mainstream car developers and Wi-Fi networks for their tangle technology.

    Venezuela using Dash/digital cash . 2 escape Fair dying currency.

    Please don't spread misinformation about things you don't understand whoever that professor is. Or at least look into it. There's so many things to criticize cryptocurrencies for but don't call it a flat scam like that.

    And what he was mentioning was Fiat/dollar gateways , and stock exchange equivalent networks which people used to day trade and or swing trade crypto-currencies. and there's a saying in the space of never ever leave more than necessary in an exchange and keep it in your own crypto wallet .

    and I'm not just calling out a professor I'm pretty sure he's a smart guy that knows things that go way over my head. But don't pull a Peter shift on me.

  5. crytocurrency is a MEDIUM OF EXCHANGE, surprised the william black didn't know that. he said they can have valued swings. like countries' currencies don't? LOL. at least crpytocurrency holds value better than 70% of the african, central/south american countries. or any country the USA decides to invade and start a war or any country USA decides to economically take over, Venezuela. after cheney's False Flag 9/11 operation and used it as an excuse to ram fascism down the world's throat to smash all dissent by cutting funding to organizations legally doing the public's good by marking them as terrorist organizations. the criminal banks, VISA, paypal… to stop dollar transactions. so crytocurrency was sort of helped get around that. wikileaks was blacklisted and not one criminal charge has been brought on them yet all the banks, paypal closed out wikileaks accounts. so i'm all for crytocurrency that governments, especially the USA cannot control! many of the places i shop take bitcoins. the only credit i give Black is the hacks are almost never known and the our gov. makes up bullcrap looking at the Demon List. and if you follow hacker cases, after a years or so the person they names on day one is always NOT involved and set free. the problem is americans/human nature only remember the first story the corporate media reports, even if/when usually it's false.

  6. Oh my god. I don’t own bitcoin, and I love the real news network. But this was the shallowest pos contribution ever. Good you had some fun. It makes everyone stupider about crypto currency than before watching this b.s.

  7. I would never get involved in it, that's what I told my friend who was using these Bitcoins. I rather have real Gold.

  8. I bought some Bitcoin when it first started…50 bucks I think. So I should be a millionaire now. Unfortunately, I have no idea where it is. Hahaha!

  9. Two clowns analyzing a tech scam that they don't have a clue how it works…they then spend 80% of the interview time laughing and the other 20% asking questions that never get answered fully…
    But whatever they said it must be funny and Real.
    Thanks for the misinformation Real Clown News

  10. can't be used as a currency ………..many online retailers use it one is newegg,overstock just off the top of my head and i buy stuff on newegg with bitcoin many times

  11. I'm not a crypto fan. Never had any. But one can treat the topic also reputable.

    If the two invested, they would react dramatically,

    Laughter is inappropriate, joy over the damage is not worth it.

  12. This is flat out propaganda I expect much better from you guys. You ask the Venezuelan government about the 1.2 billion in gold that UK banks held on their behalf and are now refusing to give it back. Bitcoins entire point is to prevent countries from unilaterally using sanctions to wage economic wars against anyone they choose to. Say for example your currency is in hyperinflation mode if you hold bitcoin rather than your local currency your funds don't become worthless.

    Now when you have your bitcoin the first thing you are told is don't leave it on an exchange, it should only ever be controlled by you.

  13. codes is the PASSWORD of the address……Ie "wallet" .when u keep your wallet offline only way folk can "hack" you is figure out your Password.

    the man/women that created bitcoin an't getting too "rich" when he/she never touch a bit of the said bitcoin since day one.Can be found out on the block explorer but he probably wouldn't know how to use that given chances he even tried bitcoin is next to nil but he a "expert".
    Going to talk about crypto least get someone least uses it and knows how it works FFS guys

  14. How easy would it be for a manager to run off with the money?
    It seems like letting only one person( in this case with not even a decent will, which is mind such an epic fail ) is just asking to getting robbed

  15. Man, I remember exploring the idea of cryptocurrency some years back, even got an electronic wallet, but it was just out of curiosity. The coins were already too high in price to make investing in them worth my while and I rapidly lost interest.

    Does it all ever seem funny now! 😆

  16. I've never before heard two people laugh so hard over a person's death! You should consider changing your station's name to The Real SICK News, because your anchor and guest are both disturbingly unhinged. I learned nothing from this "report" – absolutely nothing. Neither the host nor the guest seem to have even a rudimentary understanding of the subject they're talking about! I'd feel pity if I wasn't so disgusted by the disrespect for the deceased. Shameful.

  17. I double-dog DARE Max Keiser to have this guy on his program. I don't think he will, because his nonsense Bitcoin-worshipping charade will be ExPOSED~! 😉

  18. "from the University of Minnesota- Kansas City…joining us now from Minnesota" haha think ya meant Missouri… but siiiiiick piece bra!

  19. The beauty of crypto currency is that you are your own bank. There are two things that are very important : private keys and seeds. You can memorize, but you also need to secure on other locations. I think this channel doesn't have enough knowledge about blockchain and crypto currency exchange to talk about it. Fiat currencies are the scam of the economy.

  20. Bit coin is a fake as dollars, people been deceived, every one creating a new chain from thin airs, if there is a disaster somewhere , can we send them bit coin or dollars to eat or we send them food and shelters?. We never learn.

  21. 😩🤣😩🤣Can’t tell you who created crypto currency but tells not to buy it because it can be hacked. Who are these guys ? I swear I hate the social media sometimes

  22. Why are these two old guys laughing like crazy and they don't even know what are they talking about. I think this professor don't understand blockchain technology. But they are dumm enough to put their money in banks and they trust banks.

  23. If you don't know what you're talking about then you should just not talk about it. Now you sound like FAKE NEWS. Not to mention you made whole asses of yourselves talking about someone's death and laughing about it like you did. Jackass! If you were a News Reporter you would ask the hard to answer questions and expect to be answered in a thoroughly educational and respectful manner.

  24. Why is this so funny? These guys are hacks. Funny if how you say there is no there, there. But the fed and banks create money out of thin air daily. See fractional reserve banking.

  25. Riiiight, so people were dumb enough to basically put "money" into a private bank that can only be access on this guy's computer, now he's dead & nobody has the password to access the bank program? He was dying & didn't even give his wife the password? I have zero sympathy for such fools! I thought the whole point in crypto currency is that you have your own private wallet that no one but you can access, not to put your $$ into an acct. controlled by a stranger. There's a sucker born every minute!

  26. The internet is becoming very unstable. The public forgets that all our data has been given away by our clicking to accept terms and conditions, installing "free" apps that record every keystroke for their masters, or hacking incidents that are mostly minimized in the news, and by the companies with lax security. The ways and means are out there for theft of every penny you have in the bank. Freeze your credit on four credit services, freeze your cell phone credit report, and get a PIN for your cell phone account. Your cell phone can be taken by people who have all your info, just by those people getting aa burner and transferring your service to it. You will be unable to talk or text, but it may be too late by the time you reach your cell provider. The evil ones will go on your cell and clean out your bank accounts. Rapidly increasing every day.

  27. Jesus christ, bit off topic but the bit where they goes "he died ha ha" is a little surreal. Oh well, at least l had a chuckle too.

  28. Omg, WTF? man… this is kind of embarrassing, these two have really NO clue what they are talking about.. RNN you need to find someone with actual understanding of the Technology, otherwise just don't get involved.

  29. I love Bill Black. But for the love of God, stop asking him about crypto because he doesnt know anything about it. At ALL. LIterally just about everything he says about it is either misleading or flat out incorrect. Saying an exchange is the closest thing to a bank, when the whole point of bitcoin is not needing to rely on a third party, not needing anything like a bank, that says it all. If you actually want to inform your public about crypto, get some interviews with andreas antonopoulos.

  30. Israel's goal is to be the sole controller of internet security. Could that put crypto currency be in jeopardy? Because we all know the two things they do best is lie and steal. And has anybody seen the death certificate or the body?

  31. Crypto is the digital equivalent of collecting pogs: your Golden Monkey pog is only valuable if somebody who ALSO collects pogs will give you something for it that you want. The only difference is that a person's pogs cannot be stolen by random people in the other side of the planet, or effectively vanish because you die.

    Oh, and making or trading POGS doesn't often cost more $$ than you get for it, in terms of calculation energy costs!

  32. One particular 'currency' can beat them all. An example: You do something for someone that values two hours, you can propose your skills to someone else who needs them and you get two hours (or less or more) of value. Everyone has access to the 'bank' where you can ask for whatever assistance you need. The exchange 'money' is time. It's the most honest currency existing, it's equal for everyone. And if you are not able to do something for somebody else (exept for counting everybody else's money), well I guess you have a problem, but that is your problem.

  33. I love the Real News. Non-Corporate media rocks. However, even the Real News can make mistakes. Obviously (with much respect), nobody in this video truly understands Crypto currency and its implications. In the spirit of fairness and truth, The Real News should have a non-partisan Crypto Expert interviewed about this topic. I would recommend Carter from this YouTube channel:

  34. Max Keiser introduced me to Bill Black.

    All these offended commentators here probably don’t know what subject Bill Black specialized in and teaches….

    He laughs a lot yes, but he is not just some old man that trusts banks or the establishment. Max Keiser introduced Bill Black to millions of people as a beacon of wisdom. (2012, check it yourself)

  35. I really love the Real News Network and always check in for your insightful analysis. However, this was very poor piece. Plenty of omissions, misrepresentations and inaccuracies. I would be willing to come on your channel or have either or both of you, on my channel to give another perspective on what is a new technology that has it still in its infancy and represents a new paradigm in financial transactions, but also how human beings can conduct business using the blockchain.
    I look forward to hearing from you. 🙂

  36. Bitcoin, the first largest crypto currency, has had it rough since it reached its peak at $16,500. After the 2017 December to 2018 January frenzy ended, everyone was expecting BTC to recover. Unfortunately, it didn’t recover and things only got worse. Right now, BTC is hovering above $3500 and there is no saying when another bear grip will take the price below this level. For me, i can not bear the loss anymore due to the fall in price while waiting for a bull to run, Before now, I made research on how i could recover my loss due to the fall in market price, On making research I came across a group on Telegram (+1-765-831-2856) i joined to get crypto insights and noticed people thanking a man called Jeffery, So i contacted him and told him how much i need him to help build my portfolio, it been three weeks since i came across Jeffery, I have recovered my lost and increase my portfolio from 0.9btc to 2btc. I'm so thankful to him for his help.

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  38. Paramayning is the key advantage of PRIZM before the rest of cryptocurrency. In the basic mechanism of Forzhinga, developers was added a unique, linear-retrograde mechanism of determination of the award for storage of funds, aimed at economic attractiveness and gradual substitution of mass of all existing Financial instruments of the world((((((((((((Cryptocurrency Firm Loses Codes and Gets Hacked, Millions Lost)))))))))))

  39. Bitcoin is a more imaginary than the inflation of the dollar bill Ive never held a bitcoin in my hand in life its online fluctuations and investments that determine what its worth with no real backing other than people investing in it to make purchases that they dont wont monitered

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