[GeneralQuestions] cryptocurrency storage - why was there so much coin for evo to run off with?
[4 Points] InfinitelyOutThere:
[4 Points] DebbeisDelites:
They also took all of the BTC being held from vendor bonds. Last summer they said the .5 BTC deposit would be refunded after 6 months of good standing, and in January they decided that the new vendor bond would be 1BTC and would be held until the vendor closed their account. Hindsight tells me this was one of many tactical moves to increase their takeaway.
[2 Points] Theeconomist1:
Escrow mostly. Like infinite said vendors couldn't withdraw for many days. I think I heard Saturday was when they locked withdrawals. You figure that say an average of 5 days from time order is received until escrow finalized too. So that essentially means that orders placed from Tuesday until the following Tuesday when vendors were warned that's a week worth of escrow orders sitting there to be stolen. Plus not even counting international orders which take way longer. Lots of coin there piling up
[2 Points] sobulbous:
For all we know they could have been scamming behind the scenes for much longer.
This might make no sense but...
Remember when they vouched for that Ponzi scheme on TCF? I believe Gwern or the avid posted about it. I think they pulled the same thing on a much larger scale.
There is no way for us to verify that the monetary value of their escrow pool actually matches the total amount in escrow. Once the coins are in their hands the amounts that are shown on individual accounts are just a facade. Doesn't mean anything until those funds are liquidated.
When people asked to liquidate, they didn't comply because those funds were gone. Do this selectively and allow smaller amounts to leave the pot, making sure that there is more coming in to justify it and squeeze as much as they can before finally pulling the plug.
I'm sure they have more than enough money in fiat to last them a good while. Whatever funds they still have held in BTC are just icing on the cake.
[1 Points] boredraw:
I think there were certainly people who weren't around for sheep etc who got lazy and left coin on the market too.
because vendors couldnt withdraw for days+