Crypto investors ripped off -- accounts drained

[JimMIA]

The most popular website for trading and holding Bitcoin and other cryptocurrencies got hacked, and a LOT of investors had their accounts drained of everything in them. Many investors lost tens of thousands of dollars. Yet another good reason not to give anyone access to your bank accounts!

https://www.cnbc.com/2021/08/24/coi...ervice-after-hackers-drain-user-accounts.html

ETA: One young family with three small kids lost $168,000.

 

[tinkerhon]

The most popular website for trading and holding Bitcoin and other cryptocurrencies got hacked, and a LOT of investors had their accounts drained of everything in them. Many investors lost tens of thousands of dollars. Yet another good reason not to give anyone access to your bank accounts!

https://www.cnbc.com/2021/08/24/coi...ervice-after-hackers-drain-user-accounts.html

As an owner of Doge coin, I feel like Ive been hacked !!! Coin doesnt move--- AMC on the other hand ... )

 

[MillauFr]

Even worse they will probably still own capital gains tax on their crypto "gains"

 

[Disneefun]

The sad thing is, a lot these users were violated not because Coinbase's system got hacked, but because of SIM swapping. As far as Coinbase is concerned, you logged in using your credentials and that's not their fault. But while a bank might work with you in these cases, anything to do with crypto is on the blockchain and those transactions are non-reversible, no matter how they occur. I don't think a lot of people investing in crypto understand just how vulnerable and risky the system is. This is not like investing at a brokerage or putting your money in a bank.

 

[firefly_ris]

Ouch. We put most of ours on a hardware wallet instead of keeping everything in Coinbase. That is tough.

 

[JimMIA]

The sad thing is, a lot these users were violated not because Coinbase's system got hacked, but because of SIM swapping. As far as Coinbase is concerned, you logged in using your credentials and that's not their fault. But while a bank might work with you in these cases, anything to do with crypto is on the blockchain and those transactions are non-reversible, no matter how they occur. I don't think a lot of people investing in crypto understand just how vulnerable and risky the system is. This is not like investing at a brokerage or putting your money in a bank.

True, but what's one of the key fundamentals of investing?

"Don't invest in anything you don't thoroughly understand."

 

[Stratman50th]

True, but what's one of the key fundamentals of investing?

"Don't invest in anything you don't thoroughly understand."

Or are willing to lose.

 

[Cannot_Wait_4Disney]

 

[JimMIA]

Or are willing to lose.

Right, but these thefts are not about unwise investments. As @Disneefun said above these victims apparently didn't understand some of the inherent risks in how you store the asset.

In the article posted above, I think the most telling comment was from one of the victims who said, "I looked into Coinbase, and it seemed like it was one that everybody used and trusted.”

In other words, she got her security assessment for her $168,000 from social media -- the super-wise, super-cool anonymous sources on the Internet...some of whom are probably crooks.

Cryptocurrencies are not like owning stocks or other mainstream financial assets. If you have cash, it's in the custody of a bank and the bank is responsible for it. Stocks and other financial instruments are usually held by your broker and they are responsible. And with either, if there is some accounting error, it's reversible.

But crypto transactions are not reversible and in these cases it sounds like the victims' sim cards were compromised. There is no way to fix that apparently.

Hopefully law enforcement will be able to track the transactions and recover some of the losses

 

[LuvOrlando]

Hmmm, I wonder if those who took a loss were targeted for some reason? It would be nice if they were covert criminals, but we'll probably never know. The alternative currency always struck me as a ploy to generate an incredible volume of transactions as white noise so that it would be tough for law enforcement to follow actual criminal exchanges in the mix and weed them out before they were completed. Of course, most people didn't participate for this reason, it was fun, rewarding and interesting, but it seemed plain this was the goal of the system and inciting millions of participants as static cover was always the brass ring. The hack will likely disrupt the flow as people second guess participation so hunch is that whoever did it is probably going to be in a lot of trouble with some very scary people for cooling volume for what is probably extensive criminal enterprise. Then again maybe this is the goal, it is a brilliant disruption if the goal is to derail trafficking and such esp if those robbed are participant criminals. I can only hope.

 

[Cannot_Wait_4Disney]

 

[_19disnA]

My view of bitcoin (and the various me-too followers) has never changed. Made up out of thin air, generates ZERO revenue/profit/sales and isn't any type of tangible business enterprise. Always seemed like a variation of either a pyramid or ponzi scheme, depending upon how you define it. NOT a place I would put any of my money.

 

[mefordis]

We bought 1 BTC and sold after holding it for a year. Made 30k. That's it for me for crypto. I see it as winning at blackjack and walking away while I'm up.

 

[_19disnA]

People who put money in those dubious crypto 'banks' offering 9% annual return are starting to see those places go bankrupt. There isn't ANY legit investment that can guarantee 9% returns. And clearly to offer that kind of return, they had to invest those funds in something even more risky in order to make a profit. Doesn't surprise me that is ending badly.

 

[John VN]

My view of bitcoin (and the various me-too followers) has never changed. Made up out of thin air, generates ZERO revenue/profit/sales and isn't any type of tangible business enterprise. Always seemed like a variation of either a pyramid or ponzi scheme, depending upon how you define it. NOT a place I would put any of my money.

a lie???

 

[_19disnA]

Subject hasn't changed from when this was first asked. Funny too how crypto companies want FEWER regulations so they can carry out more of their dubious schemes on unsuspecting clients. When you put you money into something being run like the Wild West not surprised many of these end badly.

 

[TippyThomas]

I wonder what trigged AI bots to discuss crypto currency today?

 

[_19disnA]

Not specific regarding today, but all pyramid schemes require ongoing hype to constantly bring in new money and keep it from collapsing. The house of cards starts to collapse when the inflow of new money slows/stops.