Silk Road forums

Discussion => Security => Topic started by: lokiju on April 18, 2013, 11:47 pm

Title: $2300 lost at BitFloor?
Post by: lokiju on April 18, 2013, 11:47 pm
I didn't hear about the message that Roman sent to some of his customers yesterday saying he was closing down at 6:00 pm. I went to BitFloor today, I had sold my BTC when they went down to $75, it was around $2000 in account. Now they let me put in a withdraw (funny most of my money was in BTC after I sold it, but it showed up in USD) and nothing has happened.
I did a search in BlockChain.info, and all it shows are my deposits into BitFloor.
It's not illegal to buy BTC, and I did it because it was going up so fast. Then it dropped overnight, my computer was fucked the next day and I sold at $75.
Now BitFloor is down.
Am I just out of the money?
Can I go to Bank of America and put a claim in or something?
I did great for about 7 days, had over $8000 in paper while only putting in $3000.
Than I was bummed because I took a 'haircut' and sold.
Now it appears that it is probably all gone.
Does anybody have some general advice? TIA.
Title: Re: $2300 lost at BitFloor?
Post by: lokiju on April 18, 2013, 11:51 pm
I deliberately made up all fake names, is it illegal to do this? They didn't even ask me at BOA, but my email addresses, etc. are assumed and have no connection to me in any way?
Shit there's probably a law against buying BTC when you don't use your real name, or is there? I know the feds could give a shit unless they figure I'm some vendor, not some stupid ass who 'invested' in BTC.
The money isn't going to kill me, but it's almost all I had, and I'm not working etc.
Title: Re: $2300 lost at BitFloor?
Post by: lokiju on April 19, 2013, 12:12 am
My first post is confusing even to me. What happened is  that I sold all my BTC because it was going down so fast nearly a week ago. So I had all cash in my BitFloor account. It was like 30 BTC, and at $75 it was about $2300. Now today I go there and it's like I have 25 BTC which I thought was cool since BTC had gone up since I sold a couple of days ago. So I decide to download it into my wallet. BitFloor lets me do it, but it never shows up on Blockchain, and it's probably been 5 hours.
Now I'm reading about BitFloor's problems, and by reading between the lines figure the feds shut him down because of BTC privacy (can't have privacy in this day and age, somebody might get hurt,  you know)
There aren't any laws regarding BTC that I really know about (except the feds don't need 'em, 'badges? Badges? We don't need no stinking badges'
Since there are no laws, I figure the feds will tell me I'm lucky that they don't arrest me, I can see them doing EXACTLY that. So anybody know how many or if I broke laws to buy BTC anonymously?
Title: Re: $2300 lost at BitFloor?
Post by: Just Chipper on April 19, 2013, 12:33 am
Now they let me put in a withdraw (funny most of my money was in BTC after I sold it, but it showed up in USD) and nothing has happened.
I did a search in BlockChain.info, and all it shows are my deposits into BitFloor.
It's not illegal to buy BTC.
Now BitFloor is down.
Am I just out of the money?
Can I go to Bank of America and put a claim in or something?
Does anybody have some general advice? TIA.

Was it a bank withdrawl? I assume so since you said you sold your coins.
Why would this matter? Did you do a Bitcoin withdrawl?
No, but it's illegal to buy it anonymously with US currency. BitFloor is consider a "money transmitter" by FinCEN, this means they have to provide AML/KYC documentation of all purchasers or else they can get their accounts frozen under suspicion of money laundering.
It was in the middle of bankruptcy, now it's closed.
Unless you identify yourself any USD is probably gone. If you have BTC you may be able to recover it.
Probably, although you would have to provide ID most likely.
Never use US-based exchanges. I know that's not what you want to hear. But anything based out of US will require verification to not be shut down like this.

I deliberately made up all fake names, is it illegal to do this?
Shit there's probably a law against buying BTC when you don't use your real name, or is there?

In short, yes. As BitFloor is a "money transmitter" they are required to provide identification.
Yes there is. FinCEN made it quite clear that they want all USD-BTC transactions verified.

So I had all cash in my BitFloor account it was about $2300.
Now today I go there and it's like I have 25 BTC. So I decide to download it into my wallet. It never shows up on Blockchain, and it's probably been 5 hours.
figure the feds shut him down because of BTC privacy
Since there are no laws, I figure the feds will tell me I'm lucky that they don't arrest me, I can see them doing EXACTLY that.
how many or if I broke laws to buy BTC anonymously?

So it switched currencies from USD to 25BTC? Bizarre, I wonder if Roman will try and repay USD balances in BTC?
It'll probably take some time as he is more than likely doing BTC withdraws manually.
Yes, that's exactly why.
There are laws, see my previous post. Not likely to just get your money back no-strings attached.
BitFloor broke FinCEN regulations. The onus was on them. You can retrieve your funds, you simply need to provide adequate AML/KYC documentation as that's what they require to use US money transmitter.
Title: Re: $2300 lost at BitFloor?
Post by: lokiju on April 19, 2013, 10:50 am
 It's 3:48 am pacific time, and I got my coins back!!!!
Thank you BitFloor, thank you Roman, thank everybody.
It was 'only' $2300, but it's amazing how the 'thought' of that much money was hurting.

Just think if I wouldn't have touched it at all, and just gone through the fall and (now) run up again!
Title: Re: $2300 lost at BitFloor?
Post by: lokiju on April 20, 2013, 07:06 am
it's April 20 now, around midnight, and I'm as pleased now as I was a couple of days ago. I like this guy, Roman, although I bet  he had a 'tough row to hoe', and I'd hate to be him, mired in all the feds paperwork (for our own good, or for the 'children's good' )don't cha know
I'd really like to know what has happended and what PriceFloor has to do with it.
Your retrieval of funds come close enough to make a big difference in my life.