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Bitfloor Indefinitely Suspends Bitcoin Trading

Posted by timothy on from the fun-while-it-lasted dept.

PerformanceDude writes "Bitfloor (a New York-based online exchange for Bitcoin) yesterday made the following announcement on their website: I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past. As such, I have made the decision to halt operations and return all funds. Over the next days we will be working with all clients to ensure that everyone receives their funds. Please be patient as we process your request. Roman — bitfloor.com" According to the company's Twitter account, money should be returned to users' bank accounts shortly.

10 of 291 comments (clear)

  1. A likely story by Anonymous Coward · · Score: 3, Insightful

    Sounds like the govenrment finally decided they didn't like money outside their control.

    1. Re:A likely story by travdaddy · · Score: 5, Insightful

      Sounds like the govenrment finally decided they didn't like money outside their control.

      Sounds to me like they were a US company not following already existing US Anti-Money Laundering regulations.

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      Adidas To Bring Back Sneakernet
    2. Re:A likely story by rmstar · · Score: 3, Insightful

      The regulators requires that money laundering is kept in check.

      Which, frankly, is a good thing.

      BitCoin prevents that and therefore, among other reasons, it will become increasingly difficult to exchange bitcoin and the established currencies.

      Maybe, maybe not.

      To be freely tradable this kind of financial product (let's stop that ridiculous "currency" bullshit) requires some type of legal framework that isn't available. If it ever gets it, you could trade bitcoins as easily as shares. But as it stands, and aside from money laundring issues, you could as well prosecute bitcoin trading on the grounds that it is illegal gambling.

      Of course, a sound legal framework for bitcoins would most likely make them pointless.

    3. Re:A likely story by Sperbels · · Score: 3, Insightful

      And when an upstanding rich American citizen puts his money in a tax haven, he's merely investing overseas...putting his hard earned money to work for me. When the not so rich people do it, it's tax evasion. Gotta love this country.

    4. Re:A likely story by ShanghaiBill · · Score: 2, Insightful

      2. Transfer your IP assets (patents, copyrights, trademarks) to this corporation.

      If the IRS believes you are selling assets to an external entity at well below market value, then you will owe taxes based on what the IRS believes the market value to be.

      Simple solution used by many companies: Locate your R&D labs and creative workers outside the USA, so there is no transfer of IP from IRS jurisdiction. American corporate tax policy has been designed to collect almost zero revenue, while simultaneously discouraging the creation of jobs for Americans, thus resulting in less revenue from payroll and personal income tax as well. Is it any wonder that we are broke?

  2. Down to $90 already, how low can it go? by h4rr4r · · Score: 3, Insightful

    Bitcoin is already down to $90, where is that $1000 bitcoin troll at now?

    Money has to at least be a short term store of value. If bread costs twice as much in the evening as it does in the morning no one will want your currency. Bitcoin is not doing well on that front. I am sure all the early folks are cashing out now and laughing all the way to the bank though.

  3. Blanks. Fill them in. by CuteSteveJobs · · Score: 4, Insightful

    > Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past.

    Is it me or is that the most understated sentence ever written?

  4. You Answered It Yourself by eldavojohn · · Score: 3, Insightful

    Bitcoin is already down to $90, where is that $1000 bitcoin troll at now? ... [all the early folks are] cashing out now and laughing all the way to the bank though.

    Sounds like you just answered your own question.

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    My work here is dung.
  5. Re:And so it begins by h4rr4r · · Score: 4, Insightful

    There is no conspiracy here. No one cares about this toy money. They broke already existing federal anti-laundering laws so this happened. They could have followed the law and been able to stay open.

  6. Re:So when is Slashdot by DiSKiLLeR · · Score: 5, Insightful

    Never. Why on earth would it? Crypto-currencies are a fascinating concept and Bitcoin is one of the greatest experiments ever. Whether it ultimately succeeds or fails is irrelevant, it will be written into the history books forever.

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    You can tell how powerful someone is by the magnitude of the crime they can commit and be able to get away with.