Dejiny Podvodov vBitcoinovom Svete

MtGox? GLBSE? BitFunder? Btct.co? Neo&Bee? / Matej Nemček @yangwao

Who I'mCo-Founder of Hackerspace ProgressbarSenior Editor at Bitcoiner.skMaintainer of Slovak Bitcoin Forum Coinunity.skFrequent irc troll

What's Scam?US carnival slang. Possibly from scamp (“swindler,cheater”)The word "scam" became common use among the US"drug culture" in early 1980 after Operation ABSCAM,an FBI sting operation directed at public officials,became public.

What's Scam?To trick or cheat someone out of their

posession(s). A ripoff.The Internet is littered with scams such as pop-

up ads or email spam ads with "Get RichQuick/High-Paying Job/You Are A Winner"

messages.

BitcoinBTC/FIATexchanges

MtGox(Magic: The Gathering Online

Exchange)launched in July 2010founded by Jed McCaleb6/3/2011 Transfered to Mark Karpeles70% of the world's bitcoin trades by April 2013

MtGoxcontrolled implosion since 2012frequently delayed/refused/stoped withdrawals19/7/2011 Mt.Gox auditor's computer compromised(~$8,5M)7/2/2014 withdrawals halted due to transactionmalleability

MtGox28/2/2014 filled for bankcruptcy protection ($64M)7/3/2014 Block 289321 200k BTC split up in muchsmaller chunks (50B)20/3/2014 reported 'lost' of 850,000 Bitcoins (~$473M)

Coinfloorowner James McCarthy akaNefariodoor closed to US clients

WeExchangeclosed, with no formal announcementoperator Jon Montroll aka Ukyoowner Graeme Teeowner dissaprearedlot of technical issues

CryptocoinExchanges

Another master piece of unlimitedlulz

VircurexROR vulnerability10/5/2013 lost 1454 BTC/ 225263 TRC / 2340 LTC (vpshack)24/3/2014 freezes withdrawals, claims lack of reserves

Just hacked..Coinex.pw, Freshmarket.co.in, Poloniex.com,

Coinmarket.io,..

Bitcoin stockexchanges

Bitcoinicacontract-for-difference (CFD) market

against the Bitcoin to USD(BTC/USD) exchange rate

owner Zhou Tong (17yr)launched 8/9/20113/2012 hackers stole 43554 BTC (~87M)10 days after, hackers stole 18547 BTC (~90M)

GLBSEGlobal Bitcoin Stock Exchange

shutdown on October 2012owner James McCarthy akaNefario

BTC-TC(Btct.co)

great concentration of scam assestsDMS.{MINING, SELLING,PURCHASE}, LABGARDENowner Ethan Burnside

BitfunderLaunched in December 2012Held around $16m in assestsowner Jon Montroll aka Ukyo

Bitfunder8/10/2013 banned people in the US

“All current BitFunder users who are located inthe United States or are determined to be UnitedStates persons or entities will not be able to enterinto any new positions on the BitFunder website,and, as of November 1, 2013, such users will alsonot be allowed to sell positions on the BitFunder

website.”

Bitcoin Savingsand Trust(BTCST)

owner Trendon T. Shaversraised 700000 BTC (~$60M)

HavelockInvestments

bad personal experience (IPO)previous owner Topace1/11/2013 acquired by The Panama FundNEOBEEQ, previously NEOBEE

LMB HoldingsNeo & BeeEasycoinNeo XchangeWell written IPO prospectus

Neo & Bee (LMB)28/3/2014

HLI has been formally informed by the Pass-Through Fund Manager of NEOBEE thatthe compliance officer of Neo and Bee Ltd

has stated that due to an increase ofabnormal activity on the LMB share

platform, there may be a high possibility ofquestionable trading activity. While Neoand Bee Ltd investigate the issue furtherthey have strongly recommended that wehalt trading and transfers. HLI has haltedthe NEOBEE fund and is awaiting further

instructions from the issuer.

Neo & Bee(LMB)

Danny Brewster steps down as CEODanny Brewster (ex-CEO?) - claims lost of coins(1420BTC) in BitFunder/WeExchange

Neo & Bee (LMB)4/4/2014

The Fund will now be designated as NEOBEEQto reflect the uncertainty of the future of LMB

Holdings – NEO BEE Ltd.

Neo & Bee (LMB)Danny claims he left Cyprus w/o clients money and for

bussines

Ponzi Schemeover Bitcoin (in

stocks)Investor.gov issued warning

(23/7/2013)

Common Red Flags of FraudHigh investment returns with little or no riskOverly consistent returnsUnregistered investmentsUnlicensed sellersSecretive and/or complex strategies and fee structuresIt comes through someone with a shared affinity

Is there way how to evadePonzi?

MastercoinColored CoinsEthereum

Mastercoinprotocol layer: Bitcoinuser-defined currenciesdecentralized exchangesmart propertysavings wallets/addresses

EthereumSub-currenciesFinancial derivativesIdentity and Reputation SystemsDecentralized File StorageDecentralized Autonomus OrganizationsSavings walletsSmart multisignature escrowP2P gamblingOn-chain stock marketsOn-chain decentralized marketplaces

How to evade problems ofFIAT exchanges?

Multisig

or pickup one with 'audit' (solvencyreport)

Bitstamp.netKraken.com

Bitcointalk.org warningquote

Moderators do not remove likely scams. Youmust use your own brain: caveat emptor. Watchout for Ponzi schemes. Do not invest more than

you can afford to lose.

Thanks for your attendanceThanks to Security Session

Orgs