Poloniex does not only socialize losses but also actively enriches itself on the expense of its customers:
https://medium.com/@HjalmarPeters/how-poloniex-enriches-itself-by-screwing-its-customers-2002b61dced0
Topic: Poloniex's taking money from its customers to cover its loss (Read 2381 times)
November 02, 2020, 11:54:19 AM
That's Circle for you. They've been all over the place for years. I think they had high hopes for Poloniex, then saw that volume completely died after the 2017 bubble popped, and eventually decided they wanted nothing to do with the altcoin exchange business. I think this margin lending disaster was just another thing pushing them to get out.
I know the whole story very well, I was a Poloniex user for many years, long before Circle bought it. Actually, I'm sure nothing would have happened if the smart guy who had created Poloniex was still in command, but we can't change the past, and considering Poloniex's new owner doesn't want to correct what's wrong, the only advice is to stay away from that exchange.
Actually, nobody's totally sure of what happened.
We know what Poloniex said, but a guy I exchanged with on Telegram said he has proof it was a theft.
We shall remember that it took Poloniex 10 full days to react, and explain what happened. Why did it take so long?
We know what Poloniex said, but a guy I exchanged with on Telegram said he has proof it was a theft.
We shall remember that it took Poloniex 10 full days to react, and explain what happened. Why did it take so long?
I assume they were in damage control mode, figuring out their legal options and obligations, deciding whether and how to socialize the losses, etc.
Did you ever see this supposed proof? I would take it with a grain of salt if not. I don't believe there was a corresponding hot wallet withdrawal at the time, or any other signs that it was related to a hack.
Poloniex at first said it was fully commited to reimburse anyone, and then nothing for over a year.
That's Circle for you. They've been all over the place for years. I think they had high hopes for Poloniex, then saw that volume completely died after the 2017 bubble popped, and eventually decided they wanted nothing to do with the altcoin exchange business. I think this margin lending disaster was just another thing pushing them to get out.
Actually, nobody's totally sure of what happened.
We know what Poloniex said, but a guy I exchanged with on Telegram said he has proof it was a theft.
We shall remember that it took Poloniex 10 full days to react, and explain what happened. Why did it take so long?
Poloniex at first said it was fully commited to reimburse anyone, and then nothing for over a year.
The only thing for sure is that you shall stay away from that exchange. Even more so with the new owner.
We know what Poloniex said, but a guy I exchanged with on Telegram said he has proof it was a theft.
We shall remember that it took Poloniex 10 full days to react, and explain what happened. Why did it take so long?
Poloniex at first said it was fully commited to reimburse anyone, and then nothing for over a year.
The only thing for sure is that you shall stay away from that exchange. Even more so with the new owner.
You might have me confused with the OP. I didn't lose anything in this affair. I've just been keeping tabs on Poloniex.
I remember the OP saying he spoke with an attorney who felt he had a case, but without a larger class action type suit the amount in question wasn't worth the legal costs.
lost coin.
I remember the OP saying he spoke with an attorney who felt he had a case, but without a larger class action type suit the amount in question wasn't worth the legal costs.
lost coin.
You're right, I confused you two. I found a telegram link, and I saw similar things being said, ie. complicated/expensive. Apparently figuring out which jurisdiction applies is (still) a problem...
I believe Circle took it extremely seriously. I feel they viewed it as a real liability, and that it was one of the reasons they wanted to be rid of Poloniex, at a dirt cheap price if needed.
Justin Sun on the other hand is probably hiding his interest in Poloniex through a maze of shell companies in different countries. With Poloniex registered in the Seychelles and no real fiat markets (no custodial bank accounts tied to the exchange) I'm sure he feels very insulated from any legal recovery effort. What was a big fat liability to Circle was a write-off to him.
Justin Sun on the other hand is probably hiding his interest in Poloniex through a maze of shell companies in different countries. With Poloniex registered in the Seychelles and no real fiat markets (no custodial bank accounts tied to the exchange) I'm sure he feels very insulated from any legal recovery effort. What was a big fat liability to Circle was a write-off to him.
Shame Circle didn't take the actual running of the exchange seriously at any point. I'm long past using it but I did pay attention to their tenure and amazingly absolutely nothing had changed, and then they dropped this on their users.
If I were a VC type my taps would be turned off if they came a begging. They didn't have much cred before, then they buried it completely.
I can't believe any deal or liability with Justin Goddamn Sun monitoring from a nearby wardrobe is going to be legit in any way. I'd love to know whether this particular shitshow came up in negotiations and was discussed at length or whether both parties just shrugged and moved on.
I believe Circle took it extremely seriously. I feel they viewed it as a real liability, and that it was one of the reasons they wanted to be rid of Poloniex, at a dirt cheap price if needed.
Justin Sun on the other hand is probably hiding his interest in Poloniex through a maze of shell companies in different countries. With Poloniex registered in the Seychelles and no real fiat markets (no custodial bank accounts tied to the exchange) I'm sure he feels very insulated from any legal recovery effort. What was a big fat liability to Circle was a write-off to him.
I can't believe any deal or liability with Justin Goddamn Sun monitoring from a nearby wardrobe is going to be legit in any way. I'd love to know whether this particular shitshow came up in negotiations and was discussed at length or whether both parties just shrugged and moved on.
He's hiding Polo in the Seychelles and still playing by the rules of the wild west. You think he has any interest in paying off Circle's old debts? I don't.....
Did you have any luck after contacting some lawyers that you mentioned having contacted last year? I take it that you didn't by the tone of your post but I'm still curious.
You might have me confused with the OP. I didn't lose anything in this affair. I've just been keeping tabs on Poloniex.
I remember the OP saying he spoke with an attorney who felt he had a case, but without a larger class action type suit the amount in question wasn't worth the legal costs.
I would not be surprised if the transaction was structured in a way such that the new owner is insulted from any claims from the margin losses, regardless of what they have promised to do for those who lost coin.
Legally that's not possible, in regards to the victims' civil claims. The new owners have the same legal exposure the original company did. It's possible that as a term of the acquisition the new owners stipulated that the original owners pay any related settlement or legal costs, but that would be very unorthodox.
I think it would be more reasonable to assume they bought Poloniex dirt cheap with the stipulation that Circle be protected from any legal claims. Circle wanted to wash their hands of Poloniex entirely.
News? Did you get the money back?
No, I didn't!
Nobody got his money back. Poloniex's a real gang of thieves. Stay away from that exchange.
Good luck!
I would not be surprised if the transaction was structured in a way such that the new owner is insulted from any claims from the margin losses, regardless of what they have promised to do for those who lost coin.
He's hiding Polo in the Seychelles and still playing by the rules of the wild west. You think he has any interest in paying off Circle's old debts? I don't.....
Did you have any luck after contacting some lawyers that you mentioned having contacted last year? I take it that you didn't by the tone of your post but I'm still curious.
"New owner" Circle looks polite, i don't know why they don't give your money back
Good luck!
Good luck!
Don't trust his smile.
Justin Sun bought Poloniex dirt cheap as a pump machine for Tron. As soon as it was acquired, they listed TRX. Then they released wrapped BTC on Tron. Then they acquired Tron's biggest non-custodial exchange. Then they de-listed Tron competitors. Then they launched a Tron-only IEO platform. Probably other stuff too.
He's hiding Polo in the Seychelles and still playing by the rules of the wild west. You think he has any interest in paying off Circle's old debts? I don't.....
News? Did you get the money back?
No, I didn't!
Nobody got his money back. Poloniex's a real gang of thieves. Stay away from that exchange.
Good luck!
News? Did you get the money back?
No, I didn't!
Nobody got his money back. Poloniex's a real gang of thieves. Stay away from that exchange.
News? Did you get the money back?
September 04, 2020, 04:15:18 AM
Poloniex still owns approximately 1800btc-180btc=1620btc
This is about 14million euros with current prices and it used to be even less than 7mil
Imagine another exchange that can not payback that amount but still exists.
This is about 14million euros with current prices and it used to be even less than 7mil
Imagine another exchange that can not payback that amount but still exists.
Got an email from Poloniex this week:
Unfortunately, there's nothing new.
They just say that I can use their service for free, all my fees will be reimbursed.
That's clearly not enough. All the people who had their money stolen have moved their funds, and they don't want to use this service ever again, until we're getting our money back...
Quote
We sincerely apologize for the frustration caused by the margin lending pool incident in May 2019. Regaining your trust is a top priority for us...
Unfortunately, there's nothing new.
They just say that I can use their service for free, all my fees will be reimbursed.
That's clearly not enough. All the people who had their money stolen have moved their funds, and they don't want to use this service ever again, until we're getting our money back...
I'm glad you guys have been posting on here, letting everyone here know what type of shady business these guys are running, and that you should never trust a 'business man' so to speak. Anyway, I hope the court rules it all in your favours and Poloneix gets to make it right!
Yes, we're waiting...
In the meantime, we shall keep on talking about it. They did the wrong thing, they may do it again.
I'm surprised that Polo isn't offering to at least compensate in some way, though, given the fault is probably partially on them for offering margin trading on illiquid markets anyways...
...especially when their positions should have automatically closed in the first place.
...especially when their positions should have automatically closed in the first place.
I'm getting legal advice, and I've received confirmation that pooling losses is illegal.
The default is 100% due to Poloniex's negligence. If the other trading platforms didn't allow margin trading on CLAM, that's because they were smarter.
I suppose most of these people doing this illegal crap don't actually think that the people they're stealing money from are ever going to pursue them in a legal battle, and that's where they're wrong because they could get away by taking lots of people's money but one day they'll come across one person that won't put up with this.
I'm glad you guys have been posting on here, letting everyone here know what type of shady business these guys are running, and that you should never trust a 'business man' so to speak. Anyway, I hope the court rules it all in your favours and Poloneix gets to make it right!
Yes, I've received their email but since I'm missing more than one BTC, getting 0.0047 is meaningless to me. Except that it show they haven't forgotten. Good, I haven't forgotten either, and I know that free trading is also meaningless to me. Even if I were trading everyday for 10 years, that would not repay me. Fees are just small...
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