Mystery over cryptocurrency exchange’s missing $134M in funds


MARIA: WELCOME BACK. NOW THIS, CRYPTOCURRENCY MYSTERY, INVESTORS ARE LOOKING FOR ANSWERS AFTER $143 MILLION FIRST COULD NOT BE ACCESSED AFTER THE DEATH OF THE OWNER OF THE EXCHANGE. SO HE WAS THE ONLY ONE WHO HAD THE PASSWORD AND HE DIED. AUTHORITIES FOUND THE CRYPTO WALLETS WERE EMPTY. JOINING US RIGHT NOW IS THE CYBER GUY. WE’VE BEEN TALKING ABOUT THIS FOR A COUPLE WEEKS. WHERE IS THIS MONEY?>>GOOD QUESTION. WHERE IS THE REGULATION ON COMPANIES LIKE THIS. MARIA, GOOD MORNING TO YOU. COMPANY BASED IN NOVA SCOTIA. THEY FILED FOR WHAT ESSENTIALLY IS IN THE U.S. CHAPTER 11 PROTECTION TO REORG. ERNST & YOUNG HAS BEEN BROUGHT IN TO TRY TO FIGURE THIS STUFF OUT. THE FACT OF THE MATTER IS, OF ABOUT 110,000 PLUS CUSTOMER ACCOUNTS, THEY HAVE ZERO ACCESS TO THEM AND WHAT THIS OWNER OR THIS DIRECTOR OF THIS COMPANY DID WAS HE WAS THE ONLY GUY WITH THE PASSWORD AND FOR PROTECTION, THEY TAKE SOMETIMES DIGITAL CURRENCY, CRYPTOCURRENCY AND PUT IT IN WHAT’S CALLED COLD STORAGE, AWAY FROM THE INTERNET, SO NO ONE CAN GET ACCESS TO IT, SUCH AS HACKERS. HE’S THE ONLY GUY WITH A PASSWORD. THEY FINALLY BREAK IN TO FIGURE OUT WHAT’S IN THERE. NOTHING’S IN THERE. AND THEN THEY FIND OUT THAT ALSO HE HAS APPARENTLY THROUGH SOME NOT NORMAL MEANS CREATED 14 ADDITIONAL ACCOUNTS AND RIGHT NOW AS THIS INVESTIGATION IS ONGOING THEY’RE TRYING TO FIND OUT IS THERE ANYTHING MORE IN THOSE EXTRA ACCOUNTS OR DID HE CREATE MORE THAN 14 ACCOUNTS WHERE THIS CURRENCY COULD BE SITTING. INVESTORS CAN DO NOTHING. THEY CAN SIT THERE AND GO OKAY, WE’VE PROBABLY LOST IT ALL.>>SOMETHING IS TREMENDOUSLY FISHY ABOUT THIS EXCHANGE OF WHERE THE CEO WENT. WHAT ABOUT BITCOIN, THE BIG PICTURE NOW? TWO YEARS AGO BITCOIN AND CRYPTOCURRENCY IS ALL ANYONE WAS TALKING ABOUT. IS THE FEVER BACK AT ALL? I KNOW IT HAD A BOUNCE DESPITE THIS TERRIBLE NEWS ABOUT THIS EXCHANGE GOING BANKRUPT.>>YOU KNOW, CRYPTOCURRENCY KIND OF GOOD QUESTION. CRYPTOCURRENCY IS VERY MUCH HOT ON ONE SIDE OF THE PARTY, JUST LIKE POLITICS IN THIS COUNTRY RIGHT NOW, REALLY, REALLY HOT WITH THOSE WHO LOVE IT AND REALLY NOT WITH THOSE WHO DON’T. SO IT HASN’T CAUGHT ON IN TERMS OF, SAY, THE AVERAGE INVESTOR OR AS MAINSTREAM AS WE’D LIKE BUT AS INSTITUTIONAL BRANDS START TO PLAY IN THIS TERRITORY AND CONTINUE TO, THAT’S WHEN IT STARTS TO STABILIZE. BUT YOU HAVE STORIES LIKE THIS AND THIS IS WHAT SCARCE THE HECK OUT OF SO MANY — SCARES THE HECK OUT OF SO MANY PEOPLE AS YOU HAVE THE FISHY WAY IT WAS SET UP. THE DEATH NOT FISHY. HE HAD COMPLICATIONS OF CRONES DISEASE WHILE TRAVELING OVER THE HOLIDAYS. PASSED AWAY AND REALIZED NOBODY HAD ACCESS TO ANY OF THIS STUFF AND TOOK MONTHS TO GET TO IT AND THEN SAW THE KIND OF FISHY STUFF THAT WAS DONE BEFORE. MARIA: IT’S PRETTY INCREDIBLE, REWARD OF $100,000 WAS ANNOUNCED FOR ANY INFORMATION LEADING TO THIS MONEY.>>THAT’S JUST ONE CUSTOMER. MARIA: KURT.>>THAT’S ONE CUSTOMER SAYING I’LL GIVE YOU $100,000 IF YOU CAN FIND SOME OF MY. MARIA: WHAT DO YOU THINK THIS DOES TO THE CRYPTO INDUSTRY? DOES THIS DO DAMAGE TO THE WHOLE IDEA THAT YOUR MONEY IS SAFE?>>I THINK IT — YES, I THINK IT DOES TWO THINGS. ONE, FOR US AS INVESTORS, WE GO OKAY, HANG ON, I’M GOING TO JUST HOLD OFF ON THIS. SO WE GET SCARED AWAY. NUMBER TWO, YOU HAVE THE IDEA THAT WE POTENTIALLY SHOULD BE REGULATING THIS IN A MORE STABLE WAY. SO WE DON’T HAVE THE ABILITY TO HAVE ONE PERSON WITH THE PASSWORD ON MULTIPLE MILLIONS OF. MARIA: THERE YOU GO, THE R WORD, THAT’S RIGHT.>>TWINS FOR YEARS NOW HAVE BEEN TRYING TO GET A BITCOIN ETF LAUNCHED. A LOT OF EXCHANGE REGULATORS HAVE MADE THAT MORE DIFFICULT. WHEN IT COMES TO CRYPTO, IT’S BEEN THE WILD WEST FOR A LOT OF INVESTORS. A LOT OF THE CRYPTO TRADING IS DONE ON EXCHANGES THAT AREN’T REGULATED BY DOMESTIC REGULATORS.>>AND THAT WE IN THE U.S. CAN’T GET TO AND CAN’T REGULATE BECAUSE BY NATURE, BY THE FACT THAT THEY WANT TO AVOID REGULATION, THEY’RE SETTING UP SHOP IN PLACES LIKE THIS COMPANY, CX PUT UP IN NOVA SCOTIA. I WOULD NOT HAVE THOUGHT TO PUT MY CRYPTOCURRENCY COMPANY THERE. BUT APPARENTLY THERE’S SOME FAVORABLE — NONREGULATION GOING ON IN THAT NECK OF THE FOODS. MARIA: FOCUSED ON THE CRYPTOCURRENCY WITH YOU. BUT DID YOU SEE THE TAX COMING OUT OF FRANCE ON SOME OF THE SOCIAL MEDIA GIANTS, THERE’S A 3% TAX THE FRENCH GOVERNMENT IS COMING UP WITH. WE’LL TALK ABOUT IT LATER ON IN THE SHOW. WONDER IF YOU HAD ANY THOUGHTS ON THAT, GIVEN THE FACT THAT REGULATION AROUND SOCIAL MEDIA IS GETTING LOUDER AND LOUDER AND LOUDER. WE’LL SEE WHAT HAPPENS.>>YEAH. AND EUROPE REALLY LEADING THE CHARGE IN TERMS OF WHACKING SOCIAL MEDIA COMPANIES OVER THE HEAD, HOLDING PEOPLE LIKE MARK ZUCKERBERG, CHERYL SANBURG RESPONSIBLE FOR WHAT’S HAPPENING IN EUROPE AND HONESTLY THEY’RE GIVING A LOT OF REGULATORS OR LAWMAKERS IN THE U.S. AN IDEA OF HOW TO HANDLE THIS, WHERE YOU DON’T COME IN WITH HEAVY-HANDED REGULATION BUT YOU HAVE A WAY TO MOTIVATE THESE COMPANIES AWAY FROM DOING WHAT THEY WERE DOING AND MAYBE A TAX COULD DO THAT. MARIA: YOU SAW WHAT JACK SAID FROM SQUARE, RIGHT, AND TWITTER. JACK DORSEY SAID THAT –>>THAT WASN’T REALLY NEW. MARIA: MAYBE WE WERE TOO AGGRESSIVE IN CENSORING CONSERVATIVES.>>TO HIS CREDIT, ET BEEN FORTHRIGHT, SAYING YEAH, WE’RE WRONG FROM THE GET-GO. AS SOON AS WE CAME OUT SAYING LOOK WHAT YOU DID AND HOW YOU’RE SPREADING FAKE NEWS AND LIES AND WHATNOT, HE HONESTLY WAS RIGHT OUT THERE — MARIA: HE WAS ONE OF THE FIRST

26 thoughts on “Mystery over cryptocurrency exchange’s missing $134M in funds”

  1. The point of crypto currency is protect your money against exactly that. Regulations and thieving by central banks. So GD luck.

  2. Lol, lmao, crypto currency is almost as big a scam as the Euro. I cannot wait for the EUrotrash to crash and burn!

  3. Not holding your crypto in exchanges is the same as telling people not to invest in ponzi schemes: there will always be idiots who ignore good advice then whine when they lose their money. The issue isn't the currency, it's the education of people investing.

  4. I am very ignorant about how this works, but I was under the impression that "block chain" is what made Bitcoin safe.

  5. Keeping crypto in an exchange is very risky. All these exchanges have had scandals over the last 10 years and many have come and gone. If you keep your own private keys (cold store the coins yourself) then they are absolutely safe as long as you keep track of where you stored them.

  6. So much for the trustworthiness of cryptocurrency. It is too complex. You can hide a lot of nefarious things in that complexity.

  7. Crypto should never be stored on an exchange in case of a hack or a freak accident like this! Always keep your Crypto stored on a wallet like Ledger Nano S!

  8. How to make a quick $100 or more with little effort with the Energi Earndrop, Free and easy to get the airdrop of NRG, currently at $1.05 per token. Sign up, download the wallet and like and you will get 100 NRG + more by having your friends join too. http://earndrop.energi.world/homepage.php?ref=20809

  9. A year ago, Fox Business was covering Bitcoin like they are covering marijuana nowadays. Smoking themselves into denial?

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