Meraglim Blog

This Half-Billion-Dollar Cryptocurrency Nightmare Just Won’t Go Away

Facebook
Twitter
LinkedIn
 

You’ve probably heard about the Coincheck fiasco. Coincheck is a Japanese-based cryptocurrency exchange. The exchange was hacked and about $530 million of cryptocurrencies went missing. This caused the usual “run on the bank” as customers scrambled to withdraw their deposits.

The exchange had to close its doors and prohibit customer withdrawals. This is similar to the “ice-nine” response I described in Chapter 1 of my book The Road to Ruin where banks, exchanges, brokers, money market funds and others will simply suspend redemptions and freeze your money in the next financial panic rather than engage in bailouts and money printing as they did in 2008. The owners of Coincheck next promised to give customers their money back. Nice try.

It turns out that it didn’t actually have that much money despite the promise. The exchange is trying to get back to normal, but without much success. Regulators are breathing down their backs. But the nightmare doesn’t end there.

As this article reports, class action lawyers have filed major lawsuits against Coincheck and their management, demanding that accounts be reopened. Another lawsuit is planned to request damages for losses. Coincheck is just the latest in a string of frauds, hacks and failures that have resulted in billions of dollars of losses to customers.

The bitcoin advocates keep claiming that this is just the cost of technology development, and exchanges keep claiming they have learned the lessons of past failures. None of it is true. Technology does have glitches in its early stages, but not the kind that cost customers billions of dollars.

And the lessons clearly have not been learned, because these hacks just keep coming. One more reason to steer clear of bitcoin and unregulated cryptocurrency exchanges.

 

QCI and Meraglim Join Forces to Deliver Capital Markets Risk Analysis Powered by QCI’s Mukai Quantum Computing Software Platform

LEESBURG, VA, December 1, 2020 – Quantum Computing Inc.(OTCQB: QUBT) (QCI), the technology leader in quantum-readysoftware development and execution, and the only public pure play in quantum computing, has partnered with Meraglim Holdings Corporation to deliver advanced capital market risk analysis powered by QCI’s performance-leading Mukai™ quantum software development and execution platform. As an industry leader in predictive analytics, Meraglim was the first

Read More »

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »
Scroll to Top