Topic: Re: GLBSE Situation Summary (officially closed) - page 2. (Read 4694 times)

I apologize for the lack of notice and the downtime, but there isn't much choice.

Hell, I'll give you the benefit of the doubt on this one.  I still have the entire history of bitcoin on the side of my argument.  Even if this does turn out to be nothing for the first time ever, I still can't believe you people would put up with being given no info at all when your money is at stake like this.  I thought in a libertarian society, bad service == no business, but not at the bitcoin forums.  Hack an exchange and claim it just went down?  Everyone will believe you and defend you to the bitter end.  That "Thank you Pirate" thread was the best as well as Zhou Tong's Chinese relic collecting millionaire hacker that only he could talk to.  I can't believe they got away with such transparent lies.

It doesn't really matter what really happened.  By the time anyone figures it out, the money will be long gone.

They go down (FB IPO) and get hacked all the time.  You think they're going to go around publishing it?  They make an insurance claim and it's back to business as usual.


A lot of us are working on the other half.  Rome wasn't built in a day.

Except nothing says any hack occurred or any funds have been stolen. Let's at least wait until Saturday and see if anything happens before claiming things as a fact.

No money was stole, and those trading systems themselves weren't even compromised, your point is disproven by the very articles you linked. Perhaps you should have read them first.  

That is a testament to just how solid those systems were built.  None of that even comes close to just how badly Bitcoin systems get compromised and robbed.

Bitcoin, on the other hand, allows its systems to be built and audited by teenagers, then believe wild stories about chinese hackers when they inevitably get hacked and everyone loses a ton of money.

I guess the NASDAQ isn't a real exchange in your book?

They go down (FB IPO) and get hacked all the time.  You think they're going to go around publishing it?  They make an insurance claim and it's back to business as usual.


A lot of us are working on the other half.  Rome wasn't built in a day.

One problem is that scams and sketchy businesses can proliferate at a much faster rate than legitimate ventures because they bypass the groundwork which is required to set up a legitimate, properly capitalised venture with a viable business plan.  You also have the problem of the types of businesses which consumer demand is driving - which is basically high risk financial services.

A lot of us are working on the other half.  Rome wasn't built in a day.

  You never see real exchanges just randomly go down or get massively hacked, because real money and expertise is put into them.

What a joke.  This kind of unprofessional garbage is so typical of this place   You never see real exchanges just randomly go down or get massively hacked, because real money and expertise is put into them.

Bitcoin is just a hodgepodge of cobbled together half solutions and none of you dares to question it.

FledNanders was trolling.

GLBSE user funds are more or less safe, but I have bad news from the GLBSE shareholder meeting.

Nefario has, without a shareholder motion and in violation of the bylaws and GLBSE ToS, decided to close down GLBSE. Users will be able to collect deposits only after submitting identity info. A similar system to the one that Goat was forced to use will be provided so that assets can be traded elsewhere.

He is also illegally using user deposits to pay for his lawyer. If he continues, the GLBSE cash reserves (which I manage) will not be enough to cover costs and GLBSE will be in debt to users.

I'm very sorry about this, but those shareholders who are sane are helpless against Nefario and the insane shareholders who for some mind-boggling reason think that closing down GLBSE in this way will help both themselves and GLBSE users.

Since Nefario refuses to give complete details about his legal concerns and he has been acting strangely, I feel that it is somewhat possible that Nefario is working under some sort of plea bargain and is gathering IDs for future prosecution.

Nefario has defrauded me and others in several different ways and deserves a scammer tag.
- The BitcoinGlobal bylaws state that BitcoinGlobal's purpose is to operate GLBSE. By shutting down GLBSE without amending the bylaws, Nefario has violated the bylaws.
- He has stated that he would ignore any motion to remove him as CEO.
- He is knowingly making BitcoinGlobal shares worthless, violating his fiduciary duty.
- He is refusing to release my GLBSE balance without my ID, which I did not agree to.

Since my GLBSE shares are now worthless, it should be obvious that I had no knowledge of this before now.

I urge everyone to never work with Nefario again. A Bitcoin stock exchange is a good idea, though. I hope that someone will create something better than GLBSE and MPEx.

Nefario has always held onto most of the user funds so he could top up the hot wallet when necessary. Exactly what funds I should hold was never clearly-defined. I ended up holding all BitcoinGlobal cash on hand plus some of the user funds for when Nefario was away and the hot wallet needed to be refilled.

I assume he's spending user deposits. Maybe he's using his own money, but I don't think he has enough to cover lawyer fees. He said in the meeting that he wants BitcoinGlobal to pay for the lawyer.

Actual stock exchanges that are regulated can delist stocks for a variety of reasons (inluding no longer meeting listing requirements) and are not obligated to protect it's value. The company behind the stocks are ultimately responsible for managing the security, with or without a stock market to trade on. To defraud would have required Nefario to steal those customers funds and run with them.

Fraud is committed on major stock exchanges and those stock exchange can delist stocks no longer fitting the requirements. They are not normally held responsible for that however, they are simply a medium for company and investors to trade assets. That an asset gets delisted does not prevent it's trade over-the-counter between whoever is willing to trade the assets or the company to pay the shareholders.

I can only agree to the fact that the delisting was rashly and poorly executed, definitely in an attempt to sanction Chaang. I can also agree that the delisting method provided for proof of ownership is poorly adequate. An alternative should probably be worked out between Nefario and Chaang on the delisting.

The asset started from an IPO of 1 BTC and ended up trading at 0.011 BTC each, something unseen before. Diablo-D3 was frequently doing DMC to other assets trade-in under the current NAV to entice trades. Each time pushing value down.


The accounts were unblocked because a motion was accepted, asking shareholders if they wanted to keep Diablo-D3 as the manager.


Yes, we all agree it was a very rash and expeditive process which could have been planned more thoroughly, with proper delays. It would also be good to provide a more secure method of transferring codes to Goat. Preferably directly get a BTC address from holders that they can submit to GLBSE who can then send the list to goat. goat's shareholders could then communicate with him and sign with their BTC address. Or any other proper method which would have given enough prior notice and would have these things sorted out before the actual delisting of said assets.


Yes, Usagi's funds were invested in many assets which loss value, especially mining (the whole mining market crashed overall). There has been a subsequent large drop of value in his funds NAV. Some people requested investigation as to if there was negligence/scam on Usagi's part. Nothing was proven so far, other than the selected assets invested in by Usagi's funds might not have been the best. It was however, unlike in DMC's case, a loss in % which was following the loss made by the mining assets Usagi's funds were supposed to be invested into.

As for the part III.b, Nefario never made Usagi the head of a commission to review GLBSE assets to be included or gave him any decisive power. Usagi simply took the initiative to gather issuers/large investors to include in a group to review assets. Nefario refused to give them any decisive power however. He was simply taking feedback and suggestions from them regarding listings and other things since they were already heavy GLBSE users.


According to your claims it does not seem you are accusing Nefario of scamming or defrauding anyone. It seems you are accusing him of being incompetent.