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Founder of Exchange "Loses" Private Keys

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How convinient to lose the keys of the exchange and not have backup. I know that in Africa things like this are not let happen and in the case of this CEO it would be very difficult to hide. It is something that not too many investors in this exchange will just let go.

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How can this happen. If the founder or maker of the exchange don't have the key then probably the user must have. At the time of wallet creation the exchange provides the key. I am saying this because I have some private keys of my wallet. 

Is it like some exchange keep the private key and help the user to recover the wallet if he lost the password. 

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It is a large sum to be wasted so easily, and he must search for the key well and remember all the places he visited because it is not his own money but invested money, so he must find a solution quickly so that the right of people is not lost

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I think that there was a ban of cryptocurrency in Zimbabwe. Perhaps someone found a way to exit and declare the private keys lost as an excuse. I don't know if this happened but I know this is a bad excuse and shouldn't be so easy to just avoid paying the 33 Bitcoin like that.

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It is very irresponsible from this person that owned an exchange in a country where Bitcoin was able to save lives from the terrible effect of hyper inflator. He should be responsible to pay back all the people that invest in his exchange because it is a poor country in africa tha needs the Bitcoin back to their owner.

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On 11/17/2020 at 3:34 PM, setifien said:

Normaly, exchanges are moderated by several persons (each one has his own missions based on his qualifications) but in some small exchanges, one person can do the work since there is not much work to do

it would be insane to have your money on an exchange owned by just one man, because if anything happened to this guy and the exchange and all the money on it would be at risk.

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On 11/7/2019 at 10:40 PM, williamz902 said:

According to a recent news report, a founder and CEO of a Zimbabwean exchange has lost the keys to the private wallet which contained 33 BTC worth of user funds. You can read more about the story here: https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

Owners of big exchanges are now trying to steal the money of their users with a smart way. You will also see many exchangers are being victim of hacks and we are losing our money.. Who know if they are really hacked or not?

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It is very bad to know about this. It happened in a country were Bitcoin could help so much but the government had it also banned during that time and this Ceo probably found an excuse and wasn't even held these Bitcoins. It is bad for centralized exchanges to have to trust a man for the private keys. Hold your keys and own your coins.

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A very sad news indeed, the founder has made a great mistake, he/she suppose to have backup for the private keys. I really feel bad for the users of that exchange. 

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I think that this matter is one of the drawbacks of central platforms, where information is concentrated in one place or with one person, and any mistake from him causes heavy losses, and therefore decentralized platforms are better in this respect. In general, the central platforms have an insurance fund to compensate the losers from their users when there are cases of hacking or theft

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The issue with the private keys for some exchanges is a big one. We had quadrica lately where funds are lost as the private key is also lost and okex that the founder again holds the private keys and the withdrawals will be allowed a month later. It is not good to have this approach for crypto with one man holding everything.

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This is a really unfortunate story, but it is surprising that he loses the private keys for 33 BTC of the users 'money in the exchange, this is indeed a strange and bad thing and a disregard for the users' money, the CEO of this exchange must be an irresponsible and unreliable person. It is a pity that the users will lose their money because these exchanges certainly will not compensate them.


 

 

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Oh what would happen to the clients crypto?  He had to care private key!  I've put wallet private key in the secure place so that no people steal it from that place. I suggest people to be sensitive. 

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If he has lost the private keys that doesn't effect the users they should be paid back from which funds, it doesn't matter but they must be poor people who are earning there but the finds are freezed.

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This is very irresponsible action , he is trusted on that money so he should keep the key in a safe place and make sure that no one can reach it. I think when people are trusted and they are careless about other's money they should be jailed for their actions.

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Very sad .it is a  bad news.he should try to find his key.other wise he loss a big amount.he made a big mistake.he  have to learn from his mistake .

28 minutes ago, Rozy said:

This is very irresponsible action , he is trusted on that so he should keep the key in a safe place and make sure that no one can reach it. I think when people are trusted and they are careless about other's money they should be jailed for their actions.

 

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On 11/7/2019 at 12:40 PM, williamz902 said:

According to a recent news report, a founder and CEO of a Zimbabwean exchange has lost the keys to the private wallet which contained 33 BTC worth of user funds. You can read more about the story here: https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

The very great irresponsibility of this person, because as he can lose something so valuable, or perhaps it is manipulation to steal, now here we have a possible cause of why some people lose the trust of some exchanges.

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On 11/7/2019 at 12:40 PM, williamz902 said:

According to a recent news report, a founder and CEO of a Zimbabwean exchange has lost the keys to the private wallet which contained 33 BTC worth of user funds. You can read more about the story here: https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

It is unfortunate to see these things happen and that they are part of an exchange, so much responsibility that those who possess their private keys must have and this causes many to lose confidence in the exchanges.

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This is something that can happen 1 single person can not handle so much money from other people is an irresponsible act that this guy did, on the other hand it is something that always has to have backup of passwords anywhere outside the internet.

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This is really bad happened to this person. How sad that he loose this private key of this wallet when he had lots of bitcoins in it. He should keep his key safe and make some copies of his key. If he has backup than he will easily recover hy wallet.

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On 11/18/2019 at 1:36 PM, Akbor said:

It is not a good news. how a founder can loss the private key. as he is the owner of the exchange he must have two back ups for the exchange private key. the owner of the asset is the members of the exchange .they may loss their asset if the key cant be recovered . but it is unbelievable  to me. but if it happened then the owner should find out the key.

That's sad at the same time. Yes, and I agree. How does a key owner lose their key? He should have created backups or any passwords that no one else should know. This is sad and at the same time incredible. 

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One of the worst things that can happen to a Crypto currency holder is the loss of his private key.  The loss of private keys of the founder of exchange is shocking. Hope he recovers it as soon as possible.

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This is very sad for this person. Lots of people loss their private key because they cannot take of their key. If they lose their they then they cannot recover their wallet again. They must keep some copies of their key. I also suggest you to take care of your keys.

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Yes this is a very sad news am sure that this will be a lesson to all of us because this shows that we have to take very good care of our private key so let's be careful 

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It is something that I think could happen to anyone since it would happen, but actually in an exchange where all funds are secured it is something that could not be accepted, since it would be an accident but big, imagine all those bitcoins , lost and that they can never be recovered anymore, it is something that in a certain way looks strange, it is that you cannot believe this news, but well something that is usually assumed is that you must have enough evidence of where to place, the private keys of your wallet, something that I prefer is to keep them in a safe place and that I believe they will never be lost.

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Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
    • Даа, кроме нас на форуме остались рекламщики обменников и все). А у вас было монета not, он очень хорошо вырос. Надо было покупать сразу после листинга. Даа, упускаем моменты). Биткоин продолжает коррекцию делать, а я купил какие то щитки и вынужден ждать. 
    • Крупный банкир получил тюремный срок за криптомошенничество   Бывший инвестиционный банкир Рашон Рассел приговорён к 41 месяцу тюремного заключения за мошенничество с использованием цифровых активов. В результате расследования правоохранительные органы США выяснили, что обвиняемый начал опробовать свою мошенническую схему на друзьях, бывших одноклассниках и коллегах по работе в криптофонде R3 в ноябре 2020 года. Рассел обещал им гарантированную доходность инвестиций от 25% до 100%. Чтобы его слова были ещё убедительнее, он пустил в ход свой опыт инвестиционного банкира и сфабрикованные документы (поддельные счета, переводы). Сначала он использовал часть полученных обманным путём средств для выплаты долгов более ранним инвесторам. Остальные деньги Рассел тратил на азартные игры и поддержание роскошного образа жизни. Такая мошенническая схема работала до августа 2022 года. В апреле 2023 года Рашона Рассела арестовали, а в сентябре он признал свою вину. Тогда же выяснилось, что Рассел незаконно приобрёл около 100 кредитных и дебетовых банковских карт на имена других людей. По мнению следователей, он планировал использовать карты для проведения транзакций с полученными незаконным способом деньгами. Минюст США подсчитал, что потери инвесторов от мошеннической схемы Рассела составили $1,5 млн. Именно эту сумму подсудимый должен выплатить своим жертвам в качестве компенсации. Источник - https://ru.investing.com/news/cryptocurrency-news/article-2428894
    • CryptoRank поделился списком крупнейших разлоков июня.        Будьте осторожны в отмеченные дни, ведь увеличение предложения может вызвать давление со стороны продавцов. ARB — $105.21 млн;APT — $103.03 млн;UNI — $87.93 млн;STRK — $75.67 млн;DYDX — $66.3 млн;SEI — $63.81 млн;ID — $55.82 млн;IMX — $54.96 млн;MERL — $42.21 млн;ENS — $36.65 млн.  
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    • В Татарстане построят майнинговую ферму стоимостью $100 млн   В Иннополисе, городе высоких технологий в Республике Татарстан, реализуют майнинговый проект стоимостью $100 млн. Об этом на криптофоруме в Казани сообщил заместитель премьер-министра Татарстана Роман Шайхутдинов и заместитель министра цифрового развития, связи и массовых коммуникаций РФ Александр Шойтов.     В 2023 году Россия поднялась на второе место по майнингу криптовалют. По оценке экспертов, в майнинге может быть использовано до 5 гигаватт электрической мощности, что позволит стране занять лидирующие позиции в отрасли, — сказал Александр Шойтов.   В середине февраля компания по добыче биткоинов BitRiver также обнародовала планы по запуску крупнейшего в России дата-центра, ориентированного на искусственный интеллект.   В РФ пока нет чётких правил по контролю майнинга. В конце апреля российские законодатели представили новую версию законопроекта, направленного на регулирования рынка добычи криптовалют. По словам одного из его авторов, правила могут вступить в силу уже в сентябре этого года.
    • Линн Мартин выразила оптимизм по поводу биткойн-ETF, подчеркнув их потенциал и ресурсы, которые они уже принесли на Уолл-стрит.  Мартин, президент группы Нью-Йоркской фондовой биржи, выразила этот оптимизм на конференции Consensus 2024, когда ее спросили о запуске ETF на биткойны ( BTC ) и о потенциале, который они несут для Уолл-стрит.  «Мы ведем переговоры с SEC уже более шести лет о биткойн-ETF», — сказал Мартин в интервью . «Я думаю, вы не можете спорить с успехом биткойн-ETF и ликвидностью, которую они принесли базовому рынку».  Финансовые руководители все больше интересуются криптовалютой, либо напрямую, либо через ETF , что привело к росту цен на рынке криптовалют. По словам Мартина, одобрение спотового биткойн-ETF в январе пробудило интерес традиционных инвесторов, принеся на рынок много ликвидности.  Крипто-объединение Вашингтона и Уолл-стрит В последнее время на криптовалютных рынках и на Уолл-стрит наблюдались сильные движения цен, и во многом это можно объяснить сильным притоком средств в ETF, зарегистрированные в США. Рыночная капитализация криптовалюты превысила 1 триллион долларов с момента одобрения биткойн-ETF.  Спотовый крипто-ETF напрямую отражает цену конкретной криптовалюты и стратегически распределяет средства портфеля в эту криптовалюту. Эти средства активно торгуются на публичных биржах и отражают эффективность конкретной криптовалюты. Как и другие фонды, крипто-ETF легко доступны на стандартных фондовых биржах, и инвесторы могут хранить их на своих брокерских счетах. Недавно был одобрен спотовый ETF Ethereum , предоставляющий инвесторам регулируемый и доступный способ получить доступ к Ethereum. Могут последовать и другие спотовые крипто-ETF . Комментарии Мартин прозвучали в период крипто-оптимизма в правительстве США. На прошлой неделе Палата представителей США приняла законопроект FIT21. Законопроект разъясняет, как SEC классифицирует криптовалюту, создавая термин «цифровой товар» для цифровых активов. Законопроект направлен на искоренение мошенничества, регулирование криптовалютных бирж и защиту потребителей, одновременно создавая стабильную среду для криптовалюты — по сути, он сообщает, что криптовалюта теперь является проблемой правительства. Недавно Дональд Трамп начал получать пожертвования на предвыборную кампанию в криптовалюте, сигнализируя о более широком охвате отрасли политиками.
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