Bitcoin Exchange Vircurex Freezes Customer Accounts

CommanderFrank

CommanderFrank

Cat Can't Scratch It
Joined
May 9, 2000
Messages
75,399
Vircurex has announced that all withdrawals of Bitcoins (and other virtual currencies) from its exchange will be halted immediately and place a freeze an all customer accounts beginning Monday morning. Yet another blow to the once high riding Bitcoin trade.

The Beijing-based virtual currency exchange is much smaller than Mt. Gox, but it is notable that it has stopped withdrawals of Bitcoin, Litecoin and other coins today, and it will freeze all existing user accounts from Monday after running into serious financial issues.
Click to expand...
 
No, if you read about it, they were hacked some time ago and ran on a fractional reserve. Now that people are afraid of exchanges post mt-gox, the mass withdrawals completely depleted reserves on Bitcoin and probably close-to-fully depleted a couple others, like Litecoin.

Nothing to see here.
 
The sky isn't falling? I dunno, the more word gets spread around the more of these runs on exchanges there'll be and that might snowball into something that really squishes its few potential legal uses.
 
It's like I've been saying for awhile now, what was going on at Mt.Gox is going on everywhere.

Where do people think all that money their coins are supposedly worth is coming from? There's barely a real bitcoin economy to support a banking system in the first place.
 
Don't worry, another one goes down then three others pop up to take its place...and the coiners are just to eager to give them their business. What's the definition of insanity again?
 
DeathFromBelow said:
It's like I've been saying for awhile now, what was going on at Mt.Gox is going on everywhere.

Where do people think all that money their coins are supposedly worth is coming from? There's barely a real bitcoin economy to support a banking system in the first place.
Click to expand...

What do you mean? Are you saying that the failure of exchanges will be a big hit to Bitcoins value? I dont disagree with that I just dont know if thats what you are saying.

pcjunkie said:
Don't worry, another one goes down then three others pop up to take its place...and the coiners are just to eager to give them their business. What's the definition of insanity again?
Click to expand...

Nonsense, as this never occurred. You're just making things up.
 
People are getting screwed over now, the time for gloating is done. At some point there will have to be action to prevent the situation from getting worse.
 
only thing I ever kept at Virucex was DOGE and WDC -- so no worries on my end.

Actually - my holdings of WDC have shot up a ton today... this was a coin I've pretty much written off and just said screw it I'll just hold till something happens, and woo! it did! Yay making money!
 
eth3ton said:
Die. Bitcoin.
Click to expand...

Why? Because you were inconvenienced by the amd card shortage and couldn't play your video games on the card you wanted? Of all the people that should want something like btc to thrive, it should be techies. Its a currency made for computer nerds ffs. The whole point of btc was to create a currency controlled by the people and not the massively corrupt central banks. Do you realize your dollars have lost 30% of their value in the last 10 years? Do you realize the fed has been printing money and buying trillions of dollars of our own debt? Do you realize how many banks have gone tits up and been bailed out with your money?
 
Vircurex handled this very irresponsibly, yesterday I traded one of my alts for around 1.5 BTC, then immediately went to withdrawl but got an error. The support told me it was being looked into so I didn't think much of it, I'll just try tomorrow, and now this news emerges.

Luckily, you are still able to trade BTC balances so I bought up some DOGE and withdrew that. Took a .3 BTC loss because the price of DOGE is inflated now on Vircurex vs other exchanges as people are buying alts to get their money out.

It's alright though, I always consider any funds I transfer to these exchanges as money I don't have anymore.
 
B2BigAl said:
Why? Because you were inconvenienced by the amd card shortage and couldn't play your video games on the card you wanted? Of all the people that should want something like btc to thrive, it should be techies. Its a currency made for computer nerds ffs. The whole point of btc was to create a currency controlled by the people and not the massively corrupt central banks. Do you realize your dollars have lost 30% of their value in the last 10 years? Do you realize the fed has been printing money and buying trillions of dollars of our own debt? Do you realize how many banks have gone tits up and been bailed out with your money?
Click to expand...

No because this bit coin scam went on long enough and unfortunately a few people with more bit coins than brains will end up affected. Did you honestly think that a competing currency was going to be viable long term?
 
B2BigAl said:
Why? Because you were inconvenienced by the amd card shortage and couldn't play your video games on the card you wanted?
Click to expand...

For me... yes. They couldn't have waited like another 2 months before they started buying all those damn cards? Damn it, I was on the verge of getting one. I just kept missing the deals!
 
Term-X said:
I know right? But when a major bank fails in the States, it's srsdollar.


:rolleyes:
Click to expand...

When major banks fail, the economy has already failed. Just so you know.
So since Bitcon banks are failing then the Bitcon economy is already on tilt.

They say a recession isn't felt until many months after the economy as taken the dive...
 
Serpent said:
For me... yes. They couldn't have waited like another 2 months before they started buying all those damn cards? Damn it, I was on the verge of getting one. I just kept missing the deals!
Click to expand...

Just think of the deals when crypto currency fails and the miners flood the markets. :)

I've heard enough of bitcoin. Die already. So many major flaws... (Not easy for the average joe to use / not get scammed / long verification times ect.)
 
Or...ponzicoin? Amazing BCers say 'this is the future of money!!'...whilst gloating about the worth of their stash in $US..? Pretending BC were not a train-wreck, how do you 'spend' such a volatile currency? I honestly hope all you honest miners recoup your investments..The guys holding all those coins and faking transactions to fluff the ledger - you're just pissant sociopaths...
 
B2BigAl said:
Why? Because you were inconvenienced by the amd card shortage and couldn't play your video games on the card you wanted? Of all the people that should want something like btc to thrive, it should be techies. Its a currency made for computer nerds ffs. The whole point of btc was to create a currency controlled by the people and not the massively corrupt central banks. Do you realize your dollars have lost 30% of their value in the last 10 years? Do you realize the fed has been printing money and buying trillions of dollars of our own debt? Do you realize how many banks have gone tits up and been bailed out with your money?
Click to expand...

Just because it uses computers doesnt mean its valuable to techies. I think Bitcoin is a gigantic waste of everyone's time. Its making nothing out of nothing.
 
I don't see how bitcoin can survive now that those in power are trying to kill it. We can't have a currency free of manipulation now can we?
 
Dayaks said:
Just think of the deals when crypto currency fails and the miners flood the markets. :)

I've heard enough of bitcoin. Die already. So many major flaws... (Not easy for the average joe to use / not get scammed / long verification times ect.)
Click to expand...

Hell yeah! You AMD fans might just have the opportunity coming up to start upgrading and even get into 2 or 3 way crossfire at a bargain. Of course I would be afraid to purchase a card that was used for this type of stuff though.
 
Sounds like a classical bank run here. Which means the system could very well implode if another one ro two goes down in the next few days...
 
Twisted Kidney said:
People are getting screwed over now, the time for gloating is done. At some point there will have to be action to prevent the situation from getting worse.
Click to expand...

You are not required to keep your bitcoins on an exchange. What (i think) you are calling for is for someone to come along and mandate people use these other methods.

Luckily, and still apparently unbeknownst to many posters here, bitcoin is not a bank.
 
aardvark sandwich said:
You are not required to keep your bitcoins on an exchange. What (i think) you are calling for is for someone to come along and mandate people use these other methods.

Luckily, and still apparently unbeknownst to many posters here, bitcoin is not a bank.
Click to expand...

I'm more referring to controlling the interaction of Bitcoin with real economies. It's fine to spend Bitcoins at places that accept Bitcoins, but selling them for real money is very technically close to a Ponzie scheme that lacks the implied existence of shares. Ponzie schemes sell fake shares and rip off many to pay a few, thus overstating gains. Bitcoin is not fake, it's just inherently valueless, that's probably what law makers are wrestling with. Is selling someone nothing a crime? Yes. However, is it a crime if they are fully aware that they are buying nothing? No. The only thing lawmakers should worry about is protecting economies from damage. Of course, how do you protect people from the collapsing value of nothing?

If steps were taken to isolate the two it would protect both, of course that won't happen because you can't tax Bitcoins for real money if that happens. A lot of good ideas will vanish with crypto-currencies all because of some people wanting to abuse the system (or lack of system as it were) and those who just wanted the system dead.

Sadly, I think the outcome won't be any form of change, steps will be taken to erase crypto-currencies from history and the end result will be more of the same.
 
Twisted Kidney said:
I'm more referring to controlling the interaction of Bitcoin with real economies. It's fine to spend Bitcoins at places that accept Bitcoins, but selling them for real money is very technically close to a Ponzie scheme that lacks the implied existence of shares. Ponzie schemes sell fake shares and rip off many to pay a few, thus overstating gains. Bitcoin is not fake, it's just inherently valueless, that's probably what law makers are wrestling with. Is selling someone nothing a crime? Yes. However, is it a crime if they are fully aware that they are buying nothing? No. The only thing lawmakers should worry about is protecting economies from damage. Of course, how do you protect people from the collapsing value of nothing?

If steps were taken to isolate the two it would protect both, of course that won't happen because you can't tax Bitcoins for real money if that happens. A lot of good ideas will vanish with crypto-currencies all because of some people wanting to abuse the system (or lack of system as it were) and those who just wanted the system dead.

Sadly, I think the outcome won't be any form of change, steps will be taken to erase crypto-currencies from history and the end result will be more of the same.
Click to expand...

Lawmakers have an obligation to protect the public from financial scams, but Bitcoin isn't a financial scam in the traditional sense. Governments are treating Bitcoin like a stock. It can go up, it can go down, it can lose all its value. Unfortunately there are complete morons with zero financial sense running the Coin Exchanges and there are zero regulations or protections in place. The stock markets work because in order to buy or sell a stock there must be another party involved and the middle man (stock broker) charges a fee to both parties to keep the business afloat. The exchanges sadly don't seem to have this 1:1 transaction down and are treating it more like a bank where if you have X currency in the bank you can withdraw X currency or due to the extreme volatility of Bitcoin they transaction fees they charged didn't provide enough to fund their business. So the exchanges converted some of the X currency to real currency to pay employees and other costs. And now people want to cash out and there isn't nearly enough to pay out.

The US Government (and other governments) protect end users with FDIC insurance and similar products. Bitcoin exchanges basically tell you they are sorry they lost your money.
 
If Bitcoin were ever to be successful someone would have to setup an exchange that works strictly as an exchange. Meaning if I want to sell a Bitcoin there has to be someone willing to buy said coin immediately. The exchange shouldn't hold any coins and should take a 2-4% (depending on sales volume) transaction fee from both parties to facilitate the trade.

Otherwise because of the volatility involved there is no way an exchange can survive trying to run its business like a bank. At least without insurance products hedging their bets so that the exchange breaks even if Bitcoin skyrockets or crashes.
 
weuntouchable said:
So the exchanges converted some of the X currency to real currency to pay employees and other costs. And now people want to cash out and there isn't nearly enough to pay out.
Click to expand...

That is exactly what brings every Ponzie Scheme to the ground.
 
atp1916 said:
Vircurex has always been shady, just like Gox.
Click to expand...

There it is!!!

These guys are also idiots in a long list of idiots.

Still holding on hope that these nothing coins will be the future. Do you still have all your beannie babies too?
 
Twisted Kidney said:
I'm more referring to controlling the interaction of Bitcoin with real economies. It's fine to spend Bitcoins at places that accept Bitcoins, but selling them for real money is very technically close to a Ponzie scheme that lacks the implied existence of shares. Ponzie schemes sell fake shares and rip off many to pay a few, thus overstating gains. Bitcoin is not fake, it's just inherently valueless, that's probably what law makers are wrestling with. Is selling someone nothing a crime? Yes. However, is it a crime if they are fully aware that they are buying nothing? No. The only thing lawmakers should worry about is protecting economies from damage. Of course, how do you protect people from the collapsing value of nothing?

If steps were taken to isolate the two it would protect both, of course that won't happen because you can't tax Bitcoins for real money if that happens. A lot of good ideas will vanish with crypto-currencies all because of some people wanting to abuse the system (or lack of system as it were) and those who just wanted the system dead.

Sadly, I think the outcome won't be any form of change, steps will be taken to erase crypto-currencies from history and the end result will be more of the same.
Click to expand...

Currencies are supposed to be in competition with each other.

I don't follow the logic that forbidding people from exchanging their bitcoins back into dollars protects these people from being able to cash out their bitcoins....
 
XvMMvX said:
There it is!!!

These guys are also idiots in a long list of idiots.

Still holding on hope that these nothing coins will be the future. Do you still have all your beannie babies too?
Click to expand...

No, i actually have 38 paid off GPUs and their rigs + profit made.

You?
 
I paid off eleventy quadrillions of GPUs, bought 300 states of Texas, a lumberjack, an animal shelter in Tacoma, and I made a profit from trading Beanie Babies. I can make up all the proof I need linking to the blog I pretend to write, but I won't and you have to believe me. So that totally validates how much they're worth and the Beanie Baby market will never crash.
 
You must log in or register to reply here.
Back
Top