Do you really think that someone (like Paul Vernon) would waste his sucessful business by stealing? People who say that should really think again. If he wants to cash he could sell his multi million dollar exchange, right?
Ok, please then explain to us WHY he did it then.
If you forget about the hack, and just focus on all the people who lost money AFTER that fact...
Those coins were stolen too... not by the hacker in question but by Paul.
Unless you have some better way to explain it... we will all be listening.
Perfect
Remember that we entrusted our money with a business. They mismanaged the money and won't return it. With any business like a bank, it wouldn't matter how they lost the money, they would be responsible for it. Usually they should have some kind of insurance policy to cover theft and should be able to pay customers back. It's not our fault that they mismanaged the money. And of course it's very likely that they stole it themselves.
Banks steal money from people every day and do not provide insurance in the event that they lose your money. However, banks do pay into an FDIC fund provided by the federal government in the event that they lose your money but not all banks are FDIC insured. The insurance program itself is an illusion however because it really isn't paid by the banks, its also paid by depositors in the form of fees, and normally by the poor depositors because banks don't charge fees to their wealthy customers. So its normally poor people paying fees to do business with banks so that rich people can get bailed out when the bank takes off with their loot.
This program can only work though as long as a majority of banks don't up and lose everyone's money all at once. If a majority of banks or all of the banks happened to steal peoples money all at once, most people would be out of luck as there isn't enough money in the insurance fund to pay everyone back.
Banks are also fractional reserves and if everyone went to the bank at the same time to withdraw their money, we would have a similar situation to Cryptsy as where they would be out of money after 10% of depositors withdrew their money and the other 90% would have to turn to the FDIC fund, and as I've already explained, the $25 billion would be gone before most of that 90% were able to get any funds. Thus leaving most people without any recourse of recovering their money.
As an example, during the banking collapse of 2008, the 25.0 billion dollar FDIC fund was drained down to 0.6 Billion by 2009.
You are right about banks.Banks loan your money to the others and you get interest.
But the exchnage is something complete different.It is not a bank,more a just intermediary.They connected people whose trade and get a provision for every trade.Their source of financing is not credits to the others ,but trade provisions,so they are not allowed to even touch money of investors.Every customer and exchange itself should have a separate accounts.There are no fractional banking,every transaction have to be fully covered.But Cryptsy used customers money to finance their expenses and private expenses of owner.That is pure theft,even if P.Vernon did not hack his own exchange.
Fact that money from Silk Road wallets came through Cryptsy hot wallet in the time when rogue agent Shaun Bridges controled them raises a lot of suspicion.But the fact that one such transaction of 75.2 BTC went directly to cold wallet and was never moved said that Cryptsy owner who solely controled cold wallet knew about whole process of laundering,actively participiated in it and got payment for that.Otherwise how Shaun Bridges could know for addresses of cold wallet,when we all know that customers could only got deposit addresses for hot wallet?
Few days after, rogue agents were caught.Was Cryptsy owner afraid that he could be discovered and that government agencies could take all his and exchange money,so he decided to do preventive move and hack exchange to put BTCs and other coins out of reach of government and save it for his rainy days?That could explain why he did not contact authorities in the time of theft - when you rob the bank you wont call police for sure.
