Connect with us

2014

Since 2014, Roughly 42% Of Failed Crypto Exchanges Have Disappeared Without A Trace For No Apparent Reason

Published

on

Since 2014, Roughly 42% Of Failed Crypto Exchanges Have Disappeared Without A Trace For No Apparent Reason

Just recently, coinjournal.net published a report that shows the number of cryptocurrency exchanges that have failed during the last eight years. Interestingly, the researcher’s data shows that 42% of failed crypto asset trading platforms disappeared without a trace, giving users no explanation as to why the exchange shut down.

During the Past 8 Years, Research Shows Only 22% of Failed Crypto Exchanges Have Left Due to Actual Business-Related Reasons

  • A report that covers failed digital currency exchanges indicates that 42% of all the exchanges that have failed since 2014 have given no reasons as to why the business faltered and the trading platforms basically disappeared from the industry without much notice.
  • 22% of the failed crypto exchanges during the last eight years left due to actual business-related reasons, according to coinjournal.net’s research. 9% of the trading platforms turned out to be outright scams and fraudulent businesses from the get-go.
  • “Following 23 exchanges going under in 2018, this number exploded upwards by 252% in 2019, before increasing a further 17% in 2020,” coinjournal.net’s report explains. “Remaining at the same level in 2021, this year there has finally been improvement, with a 55% reduction in failures if the rest of the year follows the first six months.”
  • In a comment sent to Bitcoin.com News, Dan Ashmore, a CFA and cryptocurrency data analyst at coinjournal.net, explained that metrics like these should be cleaned up. “If cryptocurrency is to be taken seriously and fully establish itself, it needs to continue to clean up its image and leave damning statistics like these behind,” Ashmore remarked.
  • Furthermore, the report notes that while 2022 has not ended, it is expected that the year will see a 55% fall in overall crypto exchange failures. “In regards to the amount simply vanishing into thin air, one could expect this to lower – regulation is still far behind, but it has at least made progress and should make it more difficult for exchanges to vanish without a trace,” the coinjournal.net report adds.
  • The report comes at a time when a myriad of crypto companies have been suffering financially from the crypto winter. Layoffs have been spreading across the crypto industry during the last few months as thousands of crypto employees have been let go.
  • Moreover, three significant insolvencies have pushed Celsius, Three Arrows Capital (3AC), and Voyager Digital to file for bankruptcy protection. At least half of a dozen digital currency platforms have frozen withdrawals.
  • This past Wednesday, the trading platform Zipmex paused withdrawals and said it was suffering from “financial difficulties [from] of our key business partners” caused by the crypto market downturn.
  • Following the pause, the Thailand Securities and Exchange Commission (SEC) has asked Zipmex why it has paused withdrawals in a letter published on Wednesday.
Tags in this story

2014, 22, 42%, 8 years, bankruptcies, Celsius, crypto exchanges, Crypto Lenders, crypto trading platforms, Crypto Winter, cryptocurrency data analyst, Dan Ashmore, Exchanges, failed crypto exchanges, frozen withdrawals, Percentages, Thailand SEC, Three Arrows Capital (3AC), Voyager Digital, Zipmex

What do you think about the research report published by coinjournal.net? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement
Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons, coinjournal.net

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

$540 Million

$540 Million Worth Of ‘Sleeping Bitcoins’ From 2014 Move — BTC Possibly Linked To Cryptsy Theft

Published

on

$540 Million Worth Of ‘Sleeping Bitcoins’ From 2014 Move — BTC Possibly Linked To Cryptsy Theft

On March 29, blockchain parsers caught a sequence of 11 transactions totaling 11,325 bitcoin moving from unknown wallets created in 2014, to a great number of recipient addresses. Furthermore, the stash of bitcoin worth $540 million today is possibly linked to the Cryptsy theft, according to onchain analytics.

11,325 Bitcoins Move From Dormant 2014 Addresses, Assets May Be Linked to Cryptsy Theft

A whole lot of bitcoin stemming from wallets created in 2014 moved on Tuesday and the funds may be tied to the Cryptsy theft. The now-defunct cryptocurrency exchange led by Paul Vernon lost millions of dollars worth of digital assets years ago at the end of 2015.

More recently at the end of January 2022, the U.S. Department of Justice (DOJ) announced it had indicted Vernon for allegedly stealing over $1 million from digital currency wallets. The DOJ said Vernon, otherwise known as ‘Big Vern,’ stole from accounts between May 2013 and May 2015 and proceeded to deposit the stolen funds into his own bank account.

Advertisement
Paul Vernon being interviewed by the Miami New Times in 2016 before he disappeared.

The funds that moved on March 29, 2022, derive from BTC wallets that were created on July 29, 2014. All 11,325 bitcoin were processed at block height 729,587, and the action was caught by Btcparser.com, and Whale Alert. “The massive amount of activated dormant [bitcoin] in the previous posts are possibly linked to the Cryptsy hack/theft,” Whale Alert tweeted on Tuesday. Onchain analysis further shows the 11,325 bitcoin may have originated from Cryptsy, according to clustering from oxt.me data as well.

Fed Seizure Speculation Rises, ‘Big Vern’s’ Whereabouts Are Still Unknown

The stash of bitcoin sat idle for more than seven years, and some people suspect the crypto may be in the hands of the U.S. government. The speculation derives from the recent Bitfinex hack coins that moved this year, coupled with the coincidental and recent DOJ indictment of ‘Big Vern.’ However, unlike the Bitfinex hack coins that consolidated into a single address, the transfers processed at block height 729,587 were sent to a wide range of addresses.

Bitcoin address 1LwZYCt8dDhZDMd6uXGMwVsmWPXW9eX9Ww shown above is one of the addresses from the 11,325 bitcoin stash moved on March 29, 2022.

For instance, this account sent 1,000 BTC to 59 different recipients. This address sent 1,325 BTC to 78 recipient addresses on Tuesday afternoon around 6:30 p.m. (UTC). At the time of transfer, the 11,325 bitcoin was worth $540 million using today’s BTC exchange rates. Even though the DOJ indicted Vernon, the former Cryptsy CEO is still on the run and no one knows where he is located.

In 2016, the Miami New Times ran an investigative report that said Vernon and his girlfriend dipped off to China. That was according to Vernon’s wife at the time, and following that report, Vernon allegedly spoke with the Miami New Times in an exclusive interview. According to ‘Big Vern’ before the alleged interview, 13,000 bitcoin was stolen from the exchange. The exchange also said it lost 300,000 litecoin (LTC) as well.

“We shut down the website and file bankruptcy, letting users file claims via the bankruptcy process and letting the court make the disbursements,” Cryptsy’s announcement said at the time. “Or, somebody else comes in to purchase and run Cryptsy while also making good on requested withdrawals.”

Advertisement

None of the aforementioned promises came to fruition and the 11,325 bitcoin that moved on Tuesday afternoon may be linked to the 13,000 BTC stolen from Cryptsy customers.

Tags in this story

$540 Million, 11325 bitcoin, 2014, 300000 litecoin, Big Vern, bitcoin Cryptsy, Bitcoin move, Bitfinex hack coins, Cryptsy, Cryptsy bitcoin, Cryptsy CEO, dormant address, idle bitcoin, Miami New Times, Paul Vernon, sleeping bitcoin, Vernon, Vernon’s wife

What do you think about the 11,325 bitcoin that possibly is linked to the Cryptsy exchange theft? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons, Miami New Times 2016,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Continue Reading

2010

Peter Thiel Says His ‘Biggest Mistake Of The Decade Was Getting Too Late And Too Little Into Bitcoin’

Published

on

Peter Thiel Says His ‘Biggest Mistake Of The Decade Was Getting Too Late And Too Little Into Bitcoin’

During a discussion published on March 12, 2022, the billionaire entrepreneur and venture capitalist, Peter Thiel discussed how he built Paypal with fellow co-founders Max Levchin, David Sacks, and Luke Nosek. Toward the end of the hour-long conversation, the topic quickly turned to cryptocurrencies and Thiel stressed that his “biggest mistake” during the last ten years “was getting too late and too little into bitcoin.”

Paypal Co-Founder Peter Thiel Reveals the Biggest Mistake He’s Made in the Last Decade

Last week, the new book dubbed “The Founders” written by Jimmy Soni was discussed at great length during a panel conversation with the co-founders of Paypal. The book called “The Founders: The Story of Paypal and the Entrepreneurs Who Shaped Silicon Valley,” was published last month and the story gives an account of Paypal’s origins.

The callin.com broadcast published on March 12, features the Paypal co-founders Peter Thiel, Max Levchin, David Sacks, and Luke Nosek. While most of the conversation touches on the Paypal origins topic, at the 55:30 mark, the discussion turned to cryptocurrencies. The host of the discussion managed to squeeze in one more question, as he said “it would not be a tech conversation without a little bit of wild-eyed forward-looking statements.”

Advertisement

The discussion host explained that amid Paypal’s rise, a “whole crypto thing going on” and he highlighted how Peter Thiel has “written and spoken a lot about it.” When asked what the group thinks about “payment systems now and crypto,” Thiel responded. The Paypal co-founder remarked:

The biggest mistake I made in the last decade was getting too late and too little into bitcoin.

While Thiel Was Super Interested in Bitcoin, He ‘Was Somehow Programmed to Not to See It’

Thiel explained further: “You know, we invested in 2014 in Founders Fund and did reasonably well, but it was on my radar in 2010 and 2011 — We had seen all these crazy cryptocurrency people, at the time at Paypal, it was one of the things that I was actually super interested in and it motivated me, but none of the models quite worked.” Thiel further added:

With bitcoin, I was somehow programmed to not to see it as much as I should have.

The Paypal co-founder’s statements last week are similar to the declarations he made in October. Speaking at a cryptocurrency event in Miami last year, Thiel told participants that he felt like he was “underinvested in [bitcoin].” Speaking further on the benefits of bitcoin in Miami, Thiel stressed that bitcoin was “the canary in the coal mine — It’s the most honest market we have in the country.”

Tags in this story

2010, 2011, 2014, Bitcoin, Bitcoin (BTC), bitcoin discussion, bitcoin Peter Thiel, bitcoin topic, BTC Peter Thiel, callin.com broadcast, Crypto, Cryptocurrencies, Cryptocurrency, David Sacks, Founders Fund, Luke Nosek, Max Levchin, miami, Paypal co-founder, Paypal founders, Paypal origins, Peter Thiel, Peter Thiel bitcoin, Peter Thiel BTC, statements, The Founders

What do you think about the Paypal co-founder Peter Thiel’s statements about bitcoin and his remorse for not getting into it much sooner? Let us know what you think about this subject in the comments section below.

Advertisement

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Top posts

․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol ․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol
BIT3 hours ago

․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol

sponsored .bit (did.id) has raised $13 million to build a cross-chain decentralized identity protocol. The Series A round, completed one...

What a complete yolk! Comparing Bitcoin to Eggs and why it matters What a complete yolk! Comparing Bitcoin to Eggs and why it matters
adoption4 hours ago

What a complete yolk! Comparing Bitcoin to Eggs and why it matters

What a complete yolk! Comparing Bitcoin to Eggs and why it matters Liam ‘Akiba’ Wright · 4 seconds ago ·...

Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High  Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High 
Analysis4 hours ago

Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High 

Shiba inu remained close to a three-month high to start the week, after breaking out of a key resistance level...

Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security
Cyber Security5 hours ago

Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security

Hashing is really important for integrated encryption in cyber security Assuming you work in the innovation or cyber security industry,...

Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month
SafeMoon5 hours ago

Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month

Bitgert’s massive developments that include adding disruptive products and projects to the Brise ecosystem are key skyrocketing Bitgert marketcap. The...

New Brazil bill wants to tokenize mined gold on blockchain New Brazil bill wants to tokenize mined gold on blockchain
adoption5 hours ago

New Brazil bill wants to tokenize mined gold on blockchain

New Brazil bill wants to tokenize mined gold on blockchain Oluwapelumi Adejumo · 60 mins ago · 1 min read...

As Bitgert (BRISE) Prices Surges, Dogecoin (DOGE) And Shiba Inu (SHIB) Will Stabilize This Week As Bitgert (BRISE) Prices Surges, Dogecoin (DOGE) And Shiba Inu (SHIB) Will Stabilize This Week
shiba inu5 hours ago

As Bitgert (BRISE) Prices Surges, Dogecoin (DOGE) And Shiba Inu (SHIB) Will Stabilize This Week

Bitgert price is headed for a bullish performance this week as the adoption of the Bitgert products and projects grows...

Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears
btcusd5 hours ago

Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears

Solana (SOL) price has locked its sights on the goal from day one. Solana’s price is extremely bullish Price spiked...

President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies
Brazil6 hours ago

President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies

The president of the Central Bank of Brazil, Roberto Campos Neto, has defended the use of more moderate regulations in...

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network
adoption6 hours ago

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Samuel Wan · 1 hour ago · 2 min read The new...

TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT
Bitcoin7 hours ago

TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT

Top 5 Crypto You Should Watch This Week, with many crypto altcoins producing price gains of two or more digits....

Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000 Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000
Analysis7 hours ago

Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000

Bitcoin was trading lower to start the week, after the token briefly rose above $25,000 during Sunday’s session. As of...

Monero enhances privacy, security features with new upgrade Monero enhances privacy, security features with new upgrade
Monero8 hours ago

Monero enhances privacy, security features with new upgrade

Monero enhances privacy, security features with new upgrade Oluwapelumi Adejumo · 2 hours ago · 2 min read The Monero...

Report Shows Crypto Assets Record Steady Growth As Inflation Lowers Report Shows Crypto Assets Record Steady Growth As Inflation Lowers
BTC8 hours ago

Report Shows Crypto Assets Record Steady Growth As Inflation Lowers

The United States’ newest release on its inflation rate for July has created a celebration reason for many, especially the...

MANA’s network activity could bring forth a shorting opportunity here MANA’s network activity could bring forth a shorting opportunity here
Altcoins10 hours ago

MANA’s network activity could bring forth a shorting opportunity here

Every once in a while, cryptocurrencies go through a phase where volumes contract and prices are restricted within a narrow...

Monero (XMR) Climbs Over 7% Before Weekend Hard Fork Monero (XMR) Climbs Over 7% Before Weekend Hard Fork
btcusd10 hours ago

Monero (XMR) Climbs Over 7% Before Weekend Hard Fork

Monero (XMR) price has surged by as much as 7% in a matter of 24 hours before network upgrade or...

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets
MIM10 hours ago

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets Oluwapelumi Adejumo ·...

GameFi as a major achievement of the Korean Wave (Hallyu) movement GameFi as a major achievement of the Korean Wave (Hallyu) movement
Company News12 hours ago

GameFi as a major achievement of the Korean Wave (Hallyu) movement

July 15th was a music milestone. Ten years ago in Summer 2012, the release of “Gangnam Style,” catapulted South Korean...

Trending

Daily Bitcoin MiningEarn At least $50 daily with just your phone