On Tue, Feb 25, 2014 at 3:01 PM, Juan Garofalo <[1]juan.g71@gmail.com>
   wrote:

     --On Tuesday, February 25, 2014 2:40 PM -0700 Kelly John Rose
     <[2]iam@kjro.se>
     wrote:

   > On Tue, Feb 25, 2014 at 1:22 PM, Lodewijk andr de la porte
   > <[3]l@odewijk.nl>wrote:
   >
   >> Their current website announcement is a straight offense too.
   >>
   >
   > I find it somewhat ironic that they are shutting things down to avoid
   a
   > run on the bank. They can't go to fractional reserves without
   essentially
   > upsetting the ideology

     What?

   > of many of their users and they cannot let their
   > users take money out because they didn't implement the most basic
   > accounting procedures for these things.
   >
   > Sadly, this is the precise reason banks are generally heavily
   regulated.

     The problem with the exchange is that they stole the coins, full
     stop.
     That's got nothing to do with regulation. It's plain thievery.
     ...Unless by regulation you mean the fundamental belief that theft
     is
     wrong...a belief that so called regulators or any other government
     supporting retards don't share anyway.

   They were given the coins by people who trusted them and their code to
   not be easily manipulated. Their code was crap and didn't do the
   tracking properly. They didn't steal the coins, they screwed up the
   code by not ensuring that it was to the level of quality needed for
   such a high amount of finance moving through it. This is not theft,
   it's incompetence. This is closer to your bank leaving it's vault open
   or, in the case of Target, accidentally having all of the credit card
   numbers stolen.
   The problem here is that it is cheaper in the short term to create
   crappy code security-wise and push it live than it is to create code
   that is actually properly implemented for a banking environment to
   handle both the large amounts of money and the quite serious number of
   attacks that will take place once the amount of money available is
   established.
   In a competitive environment, the folks who take short cuts will save
   money in the short term, and thus will be more likely to pick up users
   than a more expensive equivalent that actually did the security
   correctly.
   Regulations in this circumstance only have the effect of ensuring a
   certain level of quality and security for the end consumer by levelling
   the playing field to a certain standard.
   --
   Kelly John Rose
   Toronto, ON
   Phone: +1 647 638-4104
   Twitter: @kjrose
   Skype: [4]kjrose.pr
   Gtalk:[5]iam@kjro.se
   MSN:[6]msn@kjro.se
   Document contents are confidential between original recipients and
   sender.

References

   1. mailto:juan.g71@gmail.com
   2. mailto:iam@kjro.se
   3. mailto:l@odewijk.nl
   4. http://kjrose.pr/
   5. mailto:iam@kjro.se
   6. mailto:msn@kjro.se