Topic: KYE (Know Your Exchange): BitFloor (Read 7850 times)

...and Roman Shtylman never did address the Russian question.

~Bruno~

BitFloor has reported a security breach.  No coins were kept in cold storage, and all coins from the hot wallet are now spent. 


 - https://bitcointalksearch.org/topic/bitfloor-needs-your-help-105818
 - https://bitcointalksearch.org/topic/bitfloor-coin-theft-details-105819

Way to miss the point. Look up the original thread: it all started with with disregard for GAAP and separation of funds in accounts. Rest is just details and circumstantial evidence, because of the avoidance of auditing and accountability.

Completely opaque? The source code for the matching engine is available on GitHub. Looks pretty solid to me. I'm more concerned about someone breaking into Bitfloor's server and cleaning out the BTC balance than I am about Bitfloor screwing me over on business terms.

Maybe you don't think the liquidity rebates are a good business model. So vote with your feet and stay away from Bitfloor. You can even voice your concerns and explain your rationale, but merely saying (paraphrased), "Bitfloor cannot be trusted because they don't expose themselves to the legal risk of accepting USPS money orders," is your opinion only.

Not nearly as bizarre as his history if the Buttcoin expose is to be believed:
http://buttcoin.org/has-bruce-wagner-pulled-off-the-financial-biggest-scam-on-the-bitcoin-community

I guess everyone forgot about this?

That said, I'm looking forward to using Bitfloor now that they offer services those of us in the Midwest can use (Wells Fargo deposits).

Thanks for the reply Shtylman,

I like everything you've done at bitfloor so far. One of the reasons I have avoided using your platform is because, as Mathew M. Wright posted earlier, I too believe Bruce Wagner is a stakeholder in bitfloor.

Bruce Wagner is probably a really nice guy but he is also convicted of financial crimes in the U.S. It's unlikely that any individual convicted of a financial crime would get cleared to operate as an MSB so using others is their best option.

Eventually, bitfloor will have the #2 spot in BTC trade volume. Before the "hacks" begin I just wanted to get this out of the way because exchanges at #2 have a terrible track record.

Thank you.

No relationship; he lives a few blocks away so we chat every once in a while

What do you mean by vested interest? He is not a stakeholder, just a user. Maybe he has personal reasons for seeing some US based exchanges grow since he deals with Bitcoins and runs a site to sell them to end users.

I will add that I think the fascination users on these forums have over Bruce Wagner is quite bizarre. From what I have witnessed, all he has done is try to heavily promote bitcoin and give it more public exposure (which unfortunately I see very few in this community doing actively). Regardless of what you may think of his show, it is important to educate new users and understand their needs and Bruce was one of the people I know actively talking to physical merchants in New York when no one else was.

Shtylman, what is your relationship with Bruce Wagner? Does Bruce Wagner have any vested interest in Bitfloor Inc.?

None. I don't know nor cooperate with anyone active on this forum nor any primarily-Bitcoin entity. I prefer to remain a "disinterested party" with respect to Bitcoin.

I can see the clear split as well but both camps can use bitcoin as-is in perfect harmony. I believe the money exchangers can't serve both camps though and ,as with any other business, the bottom line may force them decide. As time goes by, the two models will probably be

• Compliant, High volume, Small profit margins, Large business
• Incompliant, Low volume, Large profit margins, Small business

Btw, what is your relationship and/or vested interest in Camp BX?

LOVE IT!!!!!!!!

LOL

[sarcasm]

Nice, I can trust in the Bitinstant enterprise as long the photos are there:



Wait, I do not like Mr Nelson's hair dressing! It look like his hair was lick by a cow or a dog. I recommend Mr Nelson give it up the hair gel or his customers are going to become suspicious of what he is doing with the Bitinstant transactions.



Mr Shrem with his red eyes and open shirt is very suspicious. The hair dressing is all right, but I still have the sensation that Mr Shrem is a 24h drunk Russian laundering money in North-America.



Well done Mr Ver, well done! The only problem is the tie... It look like one of the cheap tie which my grandfather used to dress for the church attendance. I would never trust money to church attendants...



Finally a man which seems a gentleman. Now I can trust completely in the Bitinstant enterprise since I know there is Mr Voorhees, a gentleman which is "trying to do the right thing".

[/sarcasm]

https://www.bitinstant.com/aboutus

To confirm, Camp BX shows:


 - https://campbx.com/in/xfer.php

Let me rephrase.

Bitinstant does not accept money orders at this time nor has it ever. When I say "I" being the managing member and CEO of the company, I am speaking on behalf of the company.

I will tell you that on some of your earlier posts about account segregation, you are correct. Most Bitcoin business do not do enough KYC and due diligence.

We pride ourselves on our legal team and trying to do the right thing. To date, we have never scammed anyone and our pictures, address and phone numbers are on Bitinstant.com

Thanks for looking out

Charlie

Oh God.....

I'm not much of a poker player, but here is the explanation: the verbal slipups like "I" vs. "our company" or "he works for me" vs. "he works with us", etc. are a "tell", especially in the fin-serv racket.

Dude, you earned exactly zero brownie points for this observation. I know that and everyone who reads my posts also knows that already:

JDBound is a trooper and we mutually agreed to delete our posts where I uttered ex parte stuff.

I trust BitFloor and BitInstant a little more than MtGox and Dwolla at the moment. Maybe because they are so PERSONAL and the later are so DISTANT!

Thanks for the thoughtfull and informative post.

I'm completely not worried about BitInstant. This is a duo where Charlie is more of a face+mouth and Gareth is more of a cortex. I applied a fraction of a psi pressure to them when they first shown up here and Gareth's answer made them pass with flying colors. Please click over to the following thread from about a year ago, it is just one page to read and it is a beautifull example of how to answer due dilligence questions.

https://bitcointalksearch.org/topic/m.476286

In addition to the above BitInstant has a completely different risk profile from the customer's point of view: the customer funds are in BitInstant custody for less than an hour on the average. I have a hunch that if there are any problems Gareth is the dude who isn't afraid to put on sleve protectors and do the accounting.

Now lets compare the above with the BitFloor's reaction to a mild pressure: a major nonlinear blowout. (The really interesting parts were deleted by Maged.)

https://bitcointalksearch.org/topic/technical-details-for-how-a-wallet-move-request-works-93502

Here you have a founder who professes complete ignorance of GAAP, isn't concerned about segregation of the accounts; basically calls: "lets commingle our funds until we are sore". But the most important difference is the risk profile from the customer's point of view: the sale of market-making seats on some completely opaque exchange platform. It would be completely insane business decision to buy a seat (become a market-maker) at BitFloor.

Anyway, as somebody else already said: I don't have an alpaca in this race. But I have a hunch that people will put their alpacas to the races on the BitFloor. And those alpacas will get a haircut so deep that it will go all the way to the bone, not to the skin.

He's implying that if you don't take postal money orders, which make him feel a little safer, you're admitting to be a scammer.

Because he's an idiot.