Mercado Bitcoin: Difference between revisions
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I could go into more detail of allegations; however let’s just say the Mercado Bitcoin exchange was long suspected to not be fully backed to begin with, and was of course not stored properly with any sort of multi-signature cold storage wallet. | I could go into more detail of allegations; however let’s just say the Mercado Bitcoin exchange was long suspected to not be fully backed to begin with, and was of course not stored properly with any sort of multi-signature cold storage wallet. | ||
This exchange or platform is based in Germany, or the incident targeted people primarily in Germany.<ref name="bitcointalklistold-20" /><ref name="kylegibson-86" /><ref name="bitcointalklist-87" /> | This exchange or platform is based in Germany, or the incident targeted people primarily in Germany.<ref name="bitcointalklistold-20" /><ref name="kylegibson-86" /><ref name="bitcointalklist-87" /><ref>https://bitcointalk.org/index.php?topic=179992.0 (Feb 27, 2024)</ref><ref>https://bitcointalk.org/index.php?topic=160150.0 (Feb 27, 2024)</ref> | ||
== About Mercado == | == About Mercado == | ||
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As Bitcoin Rain's funds were stored there, investors in Bitcoin Rain as well as account holders on Mercado Bitcoin lost money. Some money was reportedly paid back, but the vast majority is still outstanding.” | As Bitcoin Rain's funds were stored there, investors in Bitcoin Rain as well as account holders on Mercado Bitcoin lost money. Some money was reportedly paid back, but the vast majority is still outstanding.” | ||
The BitcoinTalk list has estimated the amount lost as 4,000 bitcoin<ref name="bitcointalklistold-20" />. A Google Docs lists some of the victims<ref>[https://docs.google.com/spreadsheets/d/1kFhHzq0ak2LyVw_9a_fQFgS_RW-K9_lx0mdw5JpTFZU/edit#gid=0 Bitcoin Rain - Google Sheets] (Accessed Feb 27, 2024)</ref>. | The BitcoinTalk list has estimated the amount lost as 4,000 bitcoin<ref name="bitcointalklistold-20" />, which was an average of known Bitcoin Rain victims, Mercado Bitcoin victims, and a donation address<ref name=":0" />. | ||
=== Victims of Bitcoin Rain === | |||
A Google Docs lists some of the victims in Bitcoin Rain<ref name=":0">[https://docs.google.com/spreadsheets/d/1kFhHzq0ak2LyVw_9a_fQFgS_RW-K9_lx0mdw5JpTFZU/edit#gid=0 Bitcoin Rain - Google Sheets] (Accessed Feb 27, 2024)</ref>. | |||
{| class="wikitable" | {| class="wikitable" | ||
!BitcoinTalk User | |||
!Scammed XBT | |||
!Source | |||
|- | |- | ||
|yelllowsin | |yelllowsin | ||
| Line 96: | Line 99: | ||
|1.04 | |1.04 | ||
|<nowiki>https://bitcointalk.org/index.php?topic=160150.msg1882168#msg1882168</nowiki> | |<nowiki>https://bitcointalk.org/index.php?topic=160150.msg1882168#msg1882168</nowiki> | ||
|- | |||
|Total | |||
|474.04 | |||
| | |||
|} | |} | ||
=== Victims of Mercado Bitcoin === | |||
The only known victim of Mercado Bitcoin which was listed was ThiagoCMC, who was reported to have lost 2260.781192<ref name=":0" />. | |||
The total amount lost has been estimated at $101,000 USD. | The total amount lost has been estimated at $101,000 USD. | ||
| Line 115: | Line 126: | ||
What funds were recovered? What funds were reimbursed for those affected users? | What funds were recovered? What funds were reimbursed for those affected users? | ||
A donation address set up by Leandro César received a reported 5075.181457 bitcoin<ref name=":0" />. There was suspicion that Leandro César was donating to this address himself<ref name=":0" />. | |||
== Ongoing Developments == | == Ongoing Developments == | ||
Revision as of 12:37, 27 February 2024
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I could go into more detail of allegations; however let’s just say the Mercado Bitcoin exchange was long suspected to not be fully backed to begin with, and was of course not stored properly with any sort of multi-signature cold storage wallet.
This exchange or platform is based in Germany, or the incident targeted people primarily in Germany.[1][2][3][4][5]
About Mercado
This exchange or platform is based in Germany, or the incident targeted people primarily in Germany.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.
The Reality
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
- When the service was actually started (if different than the "official story").
- Who actually ran a service and their own personal history.
- How the service was structured behind the scenes. (For example, there was no "trading bot".)
- Details of what audits reported and how vulnerabilities were missed during auditing.
What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| March 10th, 2011 | Bitcoin Rain Launch | The reported launch of the Bitcoin Rain ponzi scheme[1]. |
| March 28th, 2013 | Bitcoin Rain Defaulted | The ponzi scheme Bitcoin Rain defaults[1]. On the same day, Leandro César claimed there was a security breach on his exchange website[1]. |
Technical Details
Total Amount Lost
As Bitcoin Rain's funds were stored there, investors in Bitcoin Rain as well as account holders on Mercado Bitcoin lost money. Some money was reportedly paid back, but the vast majority is still outstanding.”
The BitcoinTalk list has estimated the amount lost as 4,000 bitcoin[1], which was an average of known Bitcoin Rain victims, Mercado Bitcoin victims, and a donation address[6].
Victims of Bitcoin Rain
A Google Docs lists some of the victims in Bitcoin Rain[6].
| BitcoinTalk User | Scammed XBT | Source |
|---|---|---|
| yelllowsin | 180 | https://bitcointalk.org/index.php?topic=160150.msg1697855#msg1697855 |
| Kaioflores | 100 | Trust Ratings |
| TradeFortress | 70 | Trust Ratings |
| rudrigorc2 | 60 | Trust Ratings |
| andrehorta | 43 | https://bitcointalk.org/index.php?topic=179992.msg1884659#msg1884659 |
| jajajuta | 20 | https://bitcointalk.org/index.php?topic=327848.msg3529629#msg3529629 |
| Pimbox | 1.04 | https://bitcointalk.org/index.php?topic=160150.msg1882168#msg1882168 |
| Total | 474.04 |
Victims of Mercado Bitcoin
The only known victim of Mercado Bitcoin which was listed was ThiagoCMC, who was reported to have lost 2260.781192[6].
The total amount lost has been estimated at $101,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
“Leandro César claimed there was a security breach on his exchange website Mercado Bitcoin.
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
The incident was featured on multiple BitcoinTalk lists[1][3], the list put together by Kyle Gibson[2], and in the Bitcoin Exchange Guide list[7].
Total Amount Recovered
There do not appear to have been any funds recovered in this case.
What funds were recovered? What funds were reimbursed for those affected users?
A donation address set up by Leandro César received a reported 5075.181457 bitcoin[6]. There was suspicion that Leandro César was donating to this address himself[6].
Ongoing Developments
What parts of this case are still remaining to be concluded?
General Prevention Policies
Coming soon.
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] - BitcoinTalk (Jan 28, 2020)
- ↑ 2.0 2.1 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents - Kyle Gibson (Jan 25, 2020)
- ↑ 3.0 3.1 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses - BitcoinTalk (Feb 15, 2020)
- ↑ https://bitcointalk.org/index.php?topic=179992.0 (Feb 27, 2024)
- ↑ https://bitcointalk.org/index.php?topic=160150.0 (Feb 27, 2024)
- ↑ 6.0 6.1 6.2 6.3 6.4 Bitcoin Rain - Google Sheets (Accessed Feb 27, 2024)
- ↑ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5, 2020)