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Cryptocurrencies: the scandals, intrigues, investigation


Cryptocurrencies make our life comfortable. But there are always mistakes. They allow us different to see what is happening, to change it, to make more perfect. In this article we will look at the scandals during the existence of cryptocurrency. Thanks to them, users have learned a lot, and cryptologist could learn.

Executive Director MtGox mark Karpeles

Mt.Gox in 2014

History of stock market is full of ambiguous events. The exchange began its work as a platform for sales of game cards, in 2011 it was sold to a Japanese company, decided to catch HYIP actively emerging field of cryptocurrency. In the first year of its existence, Mt.Gox got a bad history with hacking and data theft, therefore the price of bitcoin fell to lows. To eliminate the consequences of the scandal and the return of faith of its users, a decision was made on the introduction of an effective two-factor authentication to login. It is this step, on the idea of the head of the exchange, was able to restore the relationship. And everything went on as usual, however, in 2014, management announced on the next successful hack attempt.
in order to understand the magnitude of what happened, it should be noted that already in 2013 the Board was conducted through approximately 50% of all bitcoin transactions, and by 2014, the number is closer to around 70%.
Total loss amounted to 450 million $ in bitcoin at the exchange rate at 2014 (about 850,000 bitcoins). Particularly impressionable is not necessary to translate the amount of losses in the modern equivalent of koina.
Money users were never returned, citing the incompetence of the organizers of the exchange and the lack of regulation. To pacify the deceived investors, the head of the Mt.Gox opened a criminal case. The exchange officially filed for bankruptcy, leaving many questions unanswered.

founder and CEO exchange Cryptsy Paul Vernon

Cryptsy in 2014

In the midst of an active mining cryptocurrency, the exchange has offered its users a good working environment. Everything was going fine until January 2016, has not yet been made public the evidence of embezzlement of large sums of bitcoin and other cryptocurrencies. Initially, the position holders were steady. Under the guise of trying to avoid panic, the exchange went on "maintenance", which never came.
during the investigation, they actually found that the embezzlement occurred in July 2014, which the owners happily chose to be silent, thus putting at risk the savings of their users.
Total amount of theft at the exchange rate at the time of the investigation amounted to about 6 million $.
In 2017, the situation has gained additional momentum. According to users of bitcointalk, closed the exchange transaction fails worth 90 BTC, the recipient of which became well known exchange Bittrex.
Users are left in standby mode possible punishment to the owners of the exchange and the settlement of the conflict, while Chapter Cryptsy had to be lighted in the news, as the organizer of a new project. This time, the venue for the next "sudden" bankruptcy was chosen China.

owner of the Coin Anthony Murgio in 2015

Exchange cryptocurrency was reputed to be quite successful, and its circulation could be the envy of many other market players. The headquarters was located in Florida, where her head — Anthony Murgio quietly conducted their business.
Main activity was the cashing of cryptocurrency. Polzovateley was unaware about the lack of legal status of exchange The area became a popular place for illicit money laundering, which proceeded with impunity.
Scandal has confirmed the fears of governments about the wild, non-regulated market. The consequence managed to establish numerous episodes of fraudulent activities through the stock exchange.

acne Buterin with the developers of Ethereum

The DAO in 2016

Re was Ethereum, and lived, I must say, very successfully, until one day, desire, or good deeds, or more popular, not led its creators to organizations of The DAO. It was founded as a kind of launching pad for future projects. At its base they were able to get money through Ethereum. The idea to society is like, and it supported her.
Work was in full swing, the users carried their own project, while in the sky a sound of thunder — walls of The DAO an attacker, taking advantage of the loopholes of the project, was able to transfer a large sum into your account (without breaking the law). The total losses amounted to 60 million $. Such a slap in the face led to a necessary decision: to accept the loss, or create hardwork, eliminating weaknesses. All "g" position Ethereum was the fact that hardwork would be a departure from the principle of the immutability of the code. Users have divided into two camps: those who felt that change is inevitable, and those who remained faithful to the classical ether. The result was the separation of the fork, which received Ethereum Classic. Users affected by the attack, all the losses, except moral, was reimbursed.

Alexander Vinnik in 2017

Here again we should recall the events related to the theft of funds from the open spaces of the exchange Mt.Gox. The fact that in the summer of 2017, a certain Alexander winnick was charged with the theft of these funds. It is not gaining momentum, if not one "but" — in fact, it clearly showed that bitcoin is not so anonymous, what we are presented with.
blockchain is a treasure trove of information, which is easy to operate, having the opportunity of identification of the parties. In the case of Mr. Winnick, according to investigators, managed to do it, following data insights in Fiat money.
Additionally, users noted that the anonymity of bitcoin can easily be divided on one fact – the parties can get to know each other. So, one user sending funds known the identity, can reveal the secret of his name. Next comes the trick – all the data from the blockchain are stored in open access. To get them is not difficult.

Although such episodes took place in the history of cryptocurrencies, they served as a powerful support for its improvement. Such experience is integral to move forward.

text: Eugene villain, photo: Kaboompics, The Youmiru Shimbun, AP, Etereum/FB, Anthony Murgio/FB