Topic: BTC-E Releases 6th Update On how Funds Will be Claimed (Read 430 times)

While I stand by my assertion that the petition to the Department of Justice was pretty dumb (because the coins they grabbed are definitely gone for good and the DoJ think you're all criminals anyway), I'm pleased to see users of BTC-e haven't lost all their funds to the US government.  Consider yourselves lucky it was only about half.  You could just as easily have lost it all.  Learn from this and only hold sums on exchanges that you would deem "acceptable losses" if the same were to happen again in future.  Because that's a real possibility with any exchange, particularly when fiat-handling exchanges are moving ever closer to the regulatory spotlight.

People often make the argument that exchanges are not banks, which is true enough.  But there is one important similarity in most legal jurisdictions around the world.  Once you deposit your funds with either a bank or an exchange, your legal custody of those funds ends.  They don't belong to you anymore.  You are giving ownership of those funds to that bank or exchange.  Banks become the owner of your fiat deposits because that's what the law says.  Exchanges become the owner of your bitcoin deposits because they hold the private keys and you don't.  Your legal status is that of a creditor.  That means, by using an exchange to store your funds, you are willfully returning to the realm of IOUs which crypto was specifically designed to relegate.  That's not how this is supposed to work.  

Bitcoin is considered trustless and secure because it doesn't rely on a third party to make it work.  If you freely choose to introduce a third party to the equation by asking them to look after your funds, you are weakening your own security.  

Think twice about who you give your money to.  Can they be trusted with it?  Increasingly, it seems the answer to that question is a resounding "NO".

Thank you for posting this. I have been waiting for an update (haven't read this one yet) as I do not fully understand the previous one and need more clarification. I will check it out now, thanks again.

I have to be honest, I lost all hope to see anything back from what was on there..

I think they are handling it pretty well given the amount of shit they got into.

Days after releasing a public notice that 45% of the exchange`s account balances have being seized by the US authorities and that customers will now be repaid in BTE tokens..

BTC-E has released another update on bits media forum

Continue Reading => https://zycrypto.com/btc-e-releases-6th-update-funds-will-claimed/