Tag Archives: bitcoin horror story

US Citizens troubles with Bitcoin exchanges

So recently I wanted to test out the Bitmex trading platform, and as I tried to begin by depositing bitcoins into my account, I get this message:

Due to local laws, BitMEX is unable to service your country (US). We cannot accept deposits. If you believe this to be in error, contact us at support@bitmex.com.

While any US citizen using Bitfinex (imho the best bitcoin trading platform around) know that they are terminating all crypto transactions from ALL US individual customer accounts:

“we are terminating trading, deposits, and withdrawal functionality for U.S. individual customers by no later than November 9, 2017.”

from this post.

WTF is going on??? I would love to hear your informations or opinions on why this is happening, is Trumpland USA really fucking shit up internationally?


No Gemini follow up about Bitcoin Cash


Some of us bitcoin holders held bitcoin in Gemini exchange during the Aug 1 fork, we knew Gemini was not supporting Bitcoin Cash, but after the fork and BCH/BCC become quite a valueable coin 99% of non supportive exchanges have since announced they will distribute Bitcoin Cash for their users, some have immediately (Poloniex, Cex, etc), some announced they’ll be distributing later, like Coinbase announced they’ll be distributing in January 2018.

Surely every non-supporting exchange had pressure from users, hoping and requesting they get BCH, Gemini ended up posting this on Aug 3 addressing the BCH forking issue on their blog:

Since the “hard fork” on August 1st, 2017, we have been monitoring the situation closely. Currently, Gemini does not support trading or withdrawals of the newly forked chain (BCC / BCH / BCash). As we first wrote on March 20th, 2017, and later updated on July 26, 2017, we will make every effort to support withdrawals for the chain with less total difficulty (in this case BCC). As a result, we are currently working on a technical implementation for a one-time withdrawal of BCC for our customers. With that said, any modifications we make to our digital asset storage system (including support for a one-time withdrawal), are made with extreme caution and require extensive security review to ensure the integrity of our customers’ assets. We appreciate your patience and understanding as we take the next few weeks to build this functionality in a safe, secure, and responsible manner. We will post material updates when we have them. If you have any questions, please contact Gemini customer support at support@gemini.com.

So it seems like good news, but after emailing them at their above support email, asking for an update on this situation, they responded with this generic response:

Thank you for reaching out. Currently, Gemini does not support trading or withdrawals of the newly forked chain (BCC / BCH / BCash). We have been monitoring the “hard fork” situation closely and are currently working on a technical implementation for a one-time withdrawal of BCC for our customers.

Any modifications we make to our digital asset storage system (including support for a one-time withdrawal), are made with extreme caution and require extensive security review to ensure the integrity of our customers’ assets. We appreciate your patience and understanding as we take the next few weeks to build this functionality in a safe, secure, and responsible manner.

Material updates will be posted on our blog here: https://gemini.com/blog/update-bitcoin-hard-fork-bitcoin-cash/. Please let us know if you have additional questions.

It’s actually copy and pasted from their blog. 🙁

Gemini! It’s August 21! Can you please update us, many of us have been loyal customers and would appreciate an update on this situation.

BTC-e bitcoin exchange seized by US gov


Russian bitcoin exchange BTC-e has been seized by the US gov for possible fraud. All coins have been currently confiscated. BTC-e reps have been giving updates on BitcoinTalk forum.

Here is update #3 and most recent update is update #6, you’ll have to use Google translate probably since the entire thread is in Russian language.

Mt Gox situation will pass and bitcoin will thrive once again

Mt Gox (aka “Empty Gox”) filed for bankruptcy protection Mark Karpeles admits all the money is gone, vid/article here. As of now there is an estimated 750,000 – 850,000 bitcoins that have gone missing from MtGox.

mtgox_protest Kolin Burges

For those of you that had money or bitcoins in your MtGox account, the recovery process has begun. There is a class action suit against MtGox and CEO Mark Karpeles, to join the class action suit check this page http://www.mtgoxrecovery.com There are currently over 1000 participants. The actual Greene vs MtGox Inc file is here.

Here is a nice timeline of MtGox since they began exchanging bitcoins back in 2011. Check it out here.

To those that lost on MtGox I wish you all good luck getting your money and bitcoins back.

BitcoinTalk.org website has been hacked and compromised

Received this email today:

Email title: BitcoinTalk.org Forum Compromised

Hash: SHA256

Unfortunately, it was recently discovered that the Bitcoin Forum’s server
was compromised. It is currently believed that the attacker(s) *could* have
accessed the database, but at this time it is unknown whether they actually did
so. If they accessed the database, they would have had access to all
personal messages, emails, and password hashes. To be safe, it is
recommended that all Bitcoin Forum users consider any password used
on the Bitcoin Forum in 2013 to be insecure: if you used this
password on a different site, change it. When the Bitcoin Forum
returns, change your password.

Passwords on the Bitcoin Forum are hashed with 7500 rounds of
sha256crypt. This is very strong. It may take years for
reasonably-strong passwords to be cracked. Even so, it is best to
assume that the attacker will be able to crack your passwords.

The Bitcoin Forum will return within the next several days after a
full investigation has been conducted and we are sure that this
problem cannot recur.

Check http://www.reddit.com/r/Bitcoin/ and #bitcoin on Freenode for
more info as it develops.

We apologize for the inconvenience.

The Silk Road busted and $3.6M worth of Bitcoins seized by US Gov

The famous Silk Road website has been seized and the owner arrested. The FBI, DEA, and more US government agencies in a combined effort tracked down the creator of Silk Road Ross William Ulbricht.


Here is the official PDF filed complaint against Ross William Ulbricht, aka Dread Pirate Roberts, aka DPR, aka Silk Road: UlbrichtCriminalComplaint.pdf. Charges are from money laundering to drug trafficking.

Satishi Dice closing its doors to USA customers

Satishi Dice blocking USA customers

Satishi Dice blocking USA customers

Here is the recent announcement from Satoshi Dice, the largest Bitcoin gaming website:

“Dear Community,
Beginning tomorrow, Thursday May 16, SatoshiDice.com will close to US players and all US-based IP’s will be blocked from the website. You will also see a new terms of service agreement to which you must agree if you wish to play.
This decision was made on the basis of extensive legal counsel. The best way to limit legal risk for SatoshiDice, and thereby protect its stakeholders, is to block US players.
Note that this decision does not mean that online gambling is illegal in the US, nor does it mean that Bitcoin gaming is illegal. However, the courts have not been clear on the definition of gambling, nor on what would constitute “legitimate gaming,” nor are jurisdictions properly defined, and thus this is a proactive measure to protect those involved in the project.
Further, this decision is not being made because of any citation or notice from any government agency, whatsoever. This is not, in any way, related to the recent Gox/Dwolla court order issue. Again, it is a proactive measure, based on the prudent legal guidance of our trusted lawyers.
We believe this is a wise move for the site to perpetuate in the long term.
Further, to clarify, SatoshiDice is hosted in Netherlands, Iceland, and Ireland, and has never utilized US currency or engaged with the US banking system whatsoever.

Operation Shock and Awe

I just seen this file that is a greedy and lowlife attempt at attacking Bitcoin trading websites so that the users involved can buy the BTC once they’ve lowered the price, and then sell once the price has gone back up.

Really shady technique some people will use to get money. Really lowlife scum.

Here is the exact information:

Operation Shock And Awe 2013-04-22

Operation Shock And Awe 2013-04-22

===Date: Monday 2013-04-22
===Start time of event: 15:30 UTC
===Goal: Bring bitcoin price < $30 US dollars Members, here it is, today's timeline of events. 15:30-15:45 UTC - Spread bogus AP press releases to 50+ national US and British media outlets and 100+ local outlets indicating exchange site Mt. Gox under investigation by Japnese government for securities fraud, with seizure and asset freeze soon 15:45-16:00 UTC - After initial publication of bogus AP press releases, spam story on reddit and upvote with sock accounts, spread panic in comments using sock accounts 16:00 UTC - Several sellers lined up for a coordinated dump of 250,000+ BTC which will crash the price to under 100 to correlate in time with publication of bogus AP reports 16:10 UTC - Massive coordinated http packet flood (distributed F5) from botnet of 1,000,000+ compromised machines on the following sites: - https://www.mtgox.com - https://btc-e.com - https://www.coinbase.com - https://www.bitpay.com - https://www.bitinstant.com - https://www.bitcoitalk.org - http://s2.bitcoinity.org - http://bitcoinium.com/ - http://bitcoincharts.com/ 16:30 - 17:00 UTC - During the ddos, buy only from Bitstamp which will not be included in the ddos but was included in the coordinated dump. 17:00 UTC - Stop ddos, buy as much cheap bitcoin from MTGOX as possible as quickly as you can 17:00 or later - Bogus AP reports will be corrected / debunked as hoax, price will rebound Potential profit 200-300% You all know your stations, distribute this paste to the rest of the group as it won't last long on the hidden wiki. Don't let this get out to the public, we need the price to remain high at 120 leading up to the event for maximum effect. ~~ PREPARE FOR SHOCK AND AWE ~~ http://pastebin.com/QAPxhEbP

Coinabul has many scammer accusations

Coinabul deemed as a scammer site from many users

Coinabul labeled as a scammer site from many users

Warning: Coinabul trying to defraud customers!

SCAMMER Coinabul owes me 3.3 BTC!

SCAM – Coinabul owe me 81btc

SCAM – Coinabul owe me 90btc

Don’t buy anything from coinabul. Yet another complaint.

I have emailed them asking their side of the story for these incidents, this is their reply:

We process an ungodly sum of bitcoins, and a massive number of transactions. Literally millions of dollars worth of products have been sent by us in the last few months alone, in thousands of unique transactions. Out of all of those, we have never failed to deliver products or done our best to provide recompense if providing a product is not an option. However, the Bitcoin market is still highly experimental and populated by many less-than-stable individuals who like to make a lot of noise, complain for no reason, demand we break the law, attempt continual fraud against us, et cetera. This week our current statistic is 3.125 parcels shipped per work-hour, with an average value of approximately $5,000 per parcel. With us shipping approximately $250k in orders within the last 48 hours alone, as well as myself working an average of 20 hours per day for the last few years, I have to say that you’re quite incorrect.

Our numbers stack up higher than just about any other Bitcoin-related endeavor in existence, and to not expect a few irrational/unhappy loud voices after such a massive track record is rather unrealistic. You will find that outside of Bitcoin-land, you see the same type of behavior although it’s far less prevalent than within. A great example is these kinds of reports about APMEX, who is currently the largest online retailer in the USA. Before I started dealing with large purchases for my own personal reserves years ago, I’d use them for little bits of silver and gold consistently. They deal with billions in volume, I’ve had nothing but good experiences with them, and yet you find lots of angry people.

Moral of the story is, you can’t please everyone and while the really happy customers are quiet, the angry ones always make a big stink. I think both of us would be better served if all of the investigation could be more focused on the people selling drugs and illegal weapons, or nonexistent ASICs, or nonexistent paper-backed gold ETF’s, than the folks like me who are absolute sticklers about morality and helping the growth of both the Bitcoin and bullion markets.


I must say, this is very understandable. Every huge company is going to have some negative feedback mixed in with the majority of positive feedback. I just hope those people claiming that Coinabul is a scam are not quick trigger complaints.