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Chinese Bitcoin Exchange Vanishes, Taking £2.5m of Coins With It

Posted by timothy on from the later-chumps dept.

An anonymous reader writes "A Chinese Bitcoin exchange has vanished without trace, taking more than $4 million of the virtual currency with it and leaving profit-hungry investors out of pocket. GBL, the Chinese Bitcoin exchange was launched in May 2013 and putatively based in Hong Kong, despite its servers being registered in Beijing. However GBL's Hong Kong offices do not exist. GBL mysteriously disappeared in early November taking an estimated $4.1m (£2.6m) of Bitcoins with it." (Beware the auto-playing ads, with sound.)

16 of 346 comments (clear)

  1. Sad Trombone? by Anonymous Coward · · Score: 5, Funny

    Yes. Sad Trombone.

  2. Recurring theme? by jythie · · Score: 5, Funny

    I am assuming it is only a minority of exchanges, but doesn't this seem to be a bit of a recurring problem?

    1. Re:Recurring theme? by Anonymous Coward · · Score: 5, Insightful

      Oh, ooh, I know this one! The difference is that a fly-by-night website will be taking credit card orders, and you can get a chargeback through your credit card bank when they don't show up with the merchandise.

    2. Re:Recurring theme? by Ralph+Wiggam · · Score: 5, Informative

      Banks are insured.

    3. Re:Recurring theme? by jeffmflanagan · · Score: 5, Insightful

      In this case the "bank" is the robbers. This is very different from your typical heist.

    4. Re:Recurring theme? by gaelfx · · Score: 5, Insightful

      You haven't read much news lately, have you?

    5. Re:Recurring theme? by amicusNYCL · · Score: 5, Interesting

      The kind of people drawn to anonymous decentralized currencies aren't the kind that are going to be deterred by measurable financial risk.

      The kind of people who use an anonymous decentralized currency as an investment (and leave their investment sitting in the exchange) are not the typical users of bitcoins. Once you have BTC, why not transfer that directly to your wallet? Why keep it in the uninsured exchange at all?

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
  3. I don't see a problem.. Follow the... by Mitsoid · · Score: 5, Funny

    Why not just follow the bitcoin trail? Perhaps call the local authorities and ask them for help?

    >.>

    Actually, I do feel sorry... Just had to say it.

  4. Here, random stranger, hold my wallet for me by petteyg359 · · Score: 5, Informative

    What idiot stores their cash in somebody else's wallet with no guarantee of that somebody's legitimacy and no insurance? Maybe these morons will have finally learned their lesson, and will keep their cash in their own wallets in their own pockets.

  5. Current Market Capitalization by janeuner · · Score: 5, Informative

    For those curious, there are currently 12 million bitcoin in existence, with a net value of about $4.3 billion.

    Source: http://coinmarketcap.com/

    1. Re:Current Market Capitalization by Joining+Yet+Again · · Score: 5, Funny

      For those not curious, here's a video of cats knocking shit over.

  6. Why we need regulations by Anonymous Coward · · Score: 5, Insightful

    It's the 1% who spoil it for the rest of the honest people.

    And actually, it goes deeper than that. A capitlaist system requires trust. Rules and regulations build trust into the system. Without these rules and regulations you don't have capitalism, you have a Wild West financial system that no one would invest a dime in except suckers.

  7. Re:Who can you trust now? by mythosaz · · Score: 5, Insightful

    Indeed. Pick your poison.

    If you want a decentralized, unregulated currency, then you don't get a FDIC promise when your bank vanishes overnight.

    I understand why some currency is transitory on these sites, but why are people using online wallets beyond coins in motion (escrow or pending transaction, etc.)?

  8. Re:Don't worry guys by LordLimecat · · Score: 5, Insightful

    Wasnt the whole point that people wanted an unregulated currency with no government involvement?

    Whats that old saying? "Be careful what you wish for."

  9. Re:Who can you trust now? by TWiTfan · · Score: 5, Funny

    It's like my grandpa used to say: "Kid,if you want security, go with U.S. government savings bonds. If you want pussy and meth on the Silk Road, go with Bitcoin." This also explains why my inheritance was mostly in Bitcoins.

    --
    The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
  10. Non Banking Entity by Demonantis · · Score: 5, Insightful

    This is like all the people that get mad when paypal jerks them around. Don't use a non banking entity as a bank. There is huge history reinforced reasons why the industry is regulated.