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Crypto Currency Warning: Coinbase Cuts Off 25K Russian Wallets!

Goldhedge

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well that sure escalated quickly...!
iffn you thought crypto was 'freedom' from tyranny.... "If you don't hold it, you don't own it" Ponce

Crypto Currency Warning: Coinbase Cuts Off 25K Russian Wallets!​

March 10, 2022
Coinbase, the largest US crypto exchange service, announced that they have shut down 25,000 wallets belonging to Russian customers due to suspicions about “illicit activity.” The leaders of Coinbase and Binance have said they will comply with government mandates to restrict sanctioned individuals, but won’t ban all Russian users. This announcement should blow the lid off of any idea that cryptocurrencies are a “safe haven” to store wealth and assets because they are dependent upon the frail technology where they are stored, and they are subject to tyrannical governments just the same as any currency stored in banks.

I have a digital wallet and have explored digital currencies in the past. But I have never felt comfortable putting major resources into cryptocurrencies for several reasons, the most obvious one being that it is dependent upon “the system,” which requires, among other things, electricity and a working Internet.

That alone is cause for red flags, but today the whole world can now know that cryptocurrencies are NOT a safe haven, as Coinbase, the largest US crypto exchange service, announced that they have cut off 25,000 Russian wallets. Apparently Binance will be doing the same thing.

ZeroHedge News reports:

indentDespite CEO Brian Armstrong having just the other day implored the public not to judge the company too harshly for continuing to service its accounts in Russia, Coinbase has now gone and done just the opposite: shutting down 25K wallets belonging to Russian customers due to suspicions about “illicit activity.”​
Previously, Armstrong had vehemently insisted during a series of tweets that he wouldn’t deny anyone access to their Coinbase accounts for no good reason. Now, he’s apparently going back on his word to target a sizable portion of the company’s customers in Russia.​
In a company blog post, Paul Grewal, Coinbase’s chief legal officer, announced that the largest US crypto exchange had banned access for sanctioned individuals. Cryptocurrency trading platform Coinbase said it had blocked over 25K wallet addresses related to Russian individuals or entities that it believes to be engaging in illicit activity.​
The leaders of Coinbase and Binance have said they will comply with government mandates to restrict sanctioned individuals, but won’t ban all Russian users. (Full article.)​
 

gringott

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Fakenews. Not possible with cryptos.
 

specsaregood

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How is this possible? I was told crypto is out of the system and beyond governmental reach. This MUST be a lie

My understanding is that: If they stored their crypto on the exchange/in their account then its no different than storing gold in a safety deposit box and you are at the mercy of the bank/govt. If you don't hold it you don't own it.
And if they are denying transactions from crypto addresses that were russian in origin, it would be no different then a vendor refusing gold payment.

Haven't these things already always been known? Not seeing the misinformation here.
 

the_shootist

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My understanding is that: If they stored their crypto on the exchange/in their account then its no different than storing gold in a safety deposit box and you are at the mercy of the bank/govt. If you don't hold it you don't own it.
And if they are denying transactions from crypto addresses that were russian in origin, it would be no different then a vendor refusing gold payment.

Haven't these things already always been known? Not seeing the misinformation here.
It's my very limited understanding that if you don't keep your wallet on some exchange the only way you can use it is through a personal 1 on 1 transaction with another crypto holder. From what I gather, that severely limits the portability of the crypto and makes it much harder to use.

Only my guess here, I may have it all wrong
 

specsaregood

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It's my very limited understanding that if you don't keep your wallet on some exchange the only way you can use it is through a personal 1 on 1 transaction with another crypto holder. From what I gather, that severely limits the portability of the crypto and makes it much harder to use.

Only my guess here, I may have it all wrong
yeah, im not an expert on crypto; but i think if you have it in your private wallet, you could move it to a different exchange outside the us even, then use it.
 

the_shootist

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yeah, im not an expert on crypto; but i think if you have it in your private wallet, you could move it to a different exchange outside the us even, then use it.
I don't see how that would offer much more protection. Didn't Trudeau do something similar in CA against the folks holding crypto who were supporting the truckers?

The only place I know that keeps my wealth safe is my safe
 

Ebie

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From Wikipedia:
Coinbase Global, Inc., branded Coinbase, is an American company that operates a cryptocurrency exchange platform. Coinbase operates remote-first, and lacks an official physical headquarters. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam, and as of March 2021 was the largest cryptocurrency exchange in the United States by trading volume.
On April 14, 2021, Coinbase went public on the Nasdaq exchange via a direct listing.

My comment.
I note that there are at least 3 cryptocurrency exchange platforms (cryptocurrency wallet providers?, bitcoin exchanges?) Based in either Switzerland or Singapore.

Who will trust Coinbase now?

This situation is hard to understand.
 

Lancers32

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well that sure escalated quickly...!
iffn you thought crypto was 'freedom' from tyranny.... "If you don't hold it, you don't own it" Ponce

Crypto Currency Warning: Coinbase Cuts Off 25K Russian Wallets!​

March 10, 2022
Coinbase, the largest US crypto exchange service, announced that they have shut down 25,000 wallets belonging to Russian customers due to suspicions about “illicit activity.” The leaders of Coinbase and Binance have said they will comply with government mandates to restrict sanctioned individuals, but won’t ban all Russian users. This announcement should blow the lid off of any idea that cryptocurrencies are a “safe haven” to store wealth and assets because they are dependent upon the frail technology where they are stored, and they are subject to tyrannical governments just the same as any currency stored in banks.

I have a digital wallet and have explored digital currencies in the past. But I have never felt comfortable putting major resources into cryptocurrencies for several reasons, the most obvious one being that it is dependent upon “the system,” which requires, among other things, electricity and a working Internet.

That alone is cause for red flags, but today the whole world can now know that cryptocurrencies are NOT a safe haven, as Coinbase, the largest US crypto exchange service, announced that they have cut off 25,000 Russian wallets. Apparently Binance will be doing the same thing.

ZeroHedge News reports:

indentDespite CEO Brian Armstrong having just the other day implored the public not to judge the company too harshly for continuing to service its accounts in Russia, Coinbase has now gone and done just the opposite: shutting down 25K wallets belonging to Russian customers due to suspicions about “illicit activity.”​
Previously, Armstrong had vehemently insisted during a series of tweets that he wouldn’t deny anyone access to their Coinbase accounts for no good reason. Now, he’s apparently going back on his word to target a sizable portion of the company’s customers in Russia.​
In a company blog post, Paul Grewal, Coinbase’s chief legal officer, announced that the largest US crypto exchange had banned access for sanctioned individuals. Cryptocurrency trading platform Coinbase said it had blocked over 25K wallet addresses related to Russian individuals or entities that it believes to be engaging in illicit activity.​
The leaders of Coinbase and Binance have said they will comply with government mandates to restrict sanctioned individuals, but won’t ban all Russian users. (Full article.)​
IF you hold it on an exchange you sure as hell do not own it.
 

solarion

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Yes, an exchange is the same as cryptos just as a commodity exchanges are the same as bars of gold.

Said it here 100 times. If you do not have the private keys to your cryptos, then you do not own them.

...and yes I realize few here care about facts with regard to cryptos. Carry on with the fear mongering.
 

Juristic Person

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From Wikipedia:
Coinbase Global, Inc., branded Coinbase, is an American company that operates a cryptocurrency exchange platform. Coinbase operates remote-first, and lacks an official physical headquarters. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam, and as of March 2021 was the largest cryptocurrency exchange in the United States by trading volume.
On April 14, 2021, Coinbase went public on the Nasdaq exchange via a direct listing.

My comment.
I note that there are at least 3 cryptocurrency exchange platforms (cryptocurrency wallet providers?, bitcoin exchanges?) Based in either Switzerland or Singapore.

Who will trust Coinbase now?

This situation is hard to understand.

There are many others out there - binance, crypto.com, etc.

What you want to do with these exchanges is use them only to buy and sell crypto. It’s safes to store your crypto off the exchanges - a cold wallet is best. That would be the equivalent of putting your money in a safe. No government or private company (like coinbase) would be able to take it from you.
 

specsaregood

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There are many others out there - binance, crypto.com, etc.

What you want to do with these exchanges is use them only to buy and sell crypto. It’s safes to store your crypto off the exchanges - a cold wallet is best. That would be the equivalent of putting your money in a safe. No government or private company (like coinbase) would be able to take it from you.

And if you have it in a cold wallet you can then move it to any exchange to unload it? ie: picking an exchange outside the control of whatever govt you want to avoid?
 

solarion

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Unload it for what though? Never mind stacking more debt dollars, that's foolish. Move the cryptos and use them to stack physical gold, silver, and platinum with it if you wish.

What will it take for this insane love affair with gumbymint debt units to finally end.
 

specsaregood

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Unload it for what though? Never mind stacking more debt dollars, that's foolish. Move the cryptos and use them to stack physical gold, silver, and platinum with it if you wish.

What will it take for this insane love affair with gumbymint debt units to finally end.
for whatever somebody wants.
 

Ebie

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Coinbase cut them off, not the government.
Coinbase is probably functioning as if it was a part of the government.
Or perhaps more accurately, under partial control of a government agency...
Essentially the same thing...
They would deny it, and, they may not even fully realize it.
 
Last edited:

solarion

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for whatever somebody wants.
That's what I said. US debt dollars.

If someone wants to protect themselves from the destruction of the US dollar...then I suggest not using them.

If someone wishes to use them, then what good is crypto? Just go get some debt dollar digits and be happy.
 

specsaregood

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That's what I said. US debt dollars.

If someone wants to protect themselves from the destruction of the US dollar...then I suggest not using them.

If someone wishes to use them, then what good is crypto? Just go get some debt dollar digits and be happy.
I thought the use case here for cryptos was as a unit of exchange. Are you suggesting its only use is as store of value?
 

solarion

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I thought the use case here for cryptos was as a unit of exchange. Are you suggesting its only use is as store of value?
sigh.

Yes *I'm* the one using binary terminology.

Unload it for what though? Never mind stacking more debt dollars, that's foolish. Move the cryptos and use them to stack physical gold, silver, and platinum with it if you wish.

What will it take for this insane love affair with gumbymint debt units to finally end.
One can easily swap cryptos for metals without ever dealing in debt dollar dogshit. If I want to buy something from a friend and they accept bitcoin, then great...it's a unit of exchange. The problem is centralized authority does not want you or I doing any of those things. Right?
 

the_shootist

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One can easily swap cryptos for metals without ever dealing in debt dollar dogshit. If I want to buy something from a friend and they accept bitcoin, then great...it's a unit of exchange.
That's the limiting factor if you choose to stay out of the exchanges and assure security of your cryptos, is it not?
 
Last edited:

solarion

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To some extent, yes. I mean I won't personally deal with any exchange that forces me to dox myself, so yeah, that's not going to happen. Doesn't mean I can't engage in commerce with private consenting parties though. I can, and I have...many times.

The beauty of cryptos is, just like FRNs or PMs, you do not need a bank, an exchange, or gumbymint approval to engage in commerce. You need only a willing counterparty.
 

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It's difficult to cash out any significant amount of crypto if you're not in good standing with an exchange and a bank. But as more people get screwed by inflation, banks, government overreach, etc., more and more people will move into crypto and just use it directly (which was the goal from the start). The crypto space is radically different than it was 5 years ago... and it will be radically different in another 5 years. Based on all the nonsense I'm seeing around the world, crypto is looking like a safe haven of financial freedom that people will continue to move to.
 

specsaregood

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sigh.
Yes *I'm* the one using binary terminology.
One can easily swap cryptos for metals without ever dealing in debt dollar dogshit. If I want to buy something from a friend and they accept bitcoin, then great...it's a unit of exchange. The problem is centralized authority does not want you or I doing any of those things. Right?

I'm pretty sure that was my point. If you hold it in your private wallet, exchanges in a single jurisidiction wouldn't really prevent it from still being used. So this is really a nothing-burger for people that hold their crypto.
 

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Coinbase cut them off, not the government.
"Hmmm..."
Coinbase has now gone and done just the opposite: shutting down 25K wallets belonging to Russian customers due to suspicions about “illicit activity.” Previously, Armstrong had vehemently insisted during a series of tweets that he wouldn’t deny anyone access to their Coinbase accounts for no good reason. Now, he’s apparently going back on his word to target a sizable portion of the company’s customers in Russia.
If it's private, how would they know it was illicit? And why only Russia - at this time in history...?
The leaders of Coinbase and Binance have said they will comply with government mandates to restrict sanctioned individuals, but won’t ban all Russian users. (Full article.)
double "Hmmmm...."
 

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Screenshot_2022-03-11-12-15-09-202.jpg
 

<SLV>

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The corporations are virtue-signaling to The Powers That Tax.
 

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I thought the use case here for cryptos was as a unit of exchange. Are you suggesting its only use is as store of value?
It can be both. I'll explain.

Let's just use Bitcoin as an example. Everyone understands the use case for Bitcoin as a medium of exchange. It's digital currency and can be used to purchase goods just as one would use FRN's.

The flip side to that is as a store of value in the sense that it has a limited supply. There will only be 21 million Bitcoins in existence and that number will never change. This means it can not be inflated like Fiat currency. The more people that want a piece of that 21 million, the more valuable it becomes. Right now this is reflected in it's "dollar" value. Eventually that will go away.

Now there are other "crypto's" out there that are tokens. These tokens represent a software application on the blockchain. These cryptos will have practical applications more so than just acting as from of digital currency. Their value will depend upon their relative performance and application to industry specific needs (gaming is a big one). The other consideration here from an investment perspective is simply the decentralized nature of the coin itself and the speed of transaction. If an investor wants to put a million dollars into real estate in NYC, the transaction process takes a considerable amount of time and the value of that property - or worse the building - is subject to the wims of the governing regulations and the regional market value which as we saw with Covid could turn problematic quickly. Then there is building maintenance and other associated costs. With Bitcoin however, the transactions are instant and the investment can be moved anywhere in the world instantly. So as a safe haven for "money" it is ideal in that sense (although I still prefer PM's and probably always will).

But as you can see it can be used as both a currency and an investment (not recommending either way - just trying to explain).
 

Juristic Person

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It's difficult to cash out any significant amount of crypto if you're not in good standing with an exchange and a bank. But as more people get screwed by inflation, banks, government overreach, etc., more and more people will move into crypto and just use it directly (which was the goal from the start). The crypto space is radically different than it was 5 years ago... and it will be radically different in another 5 years. Based on all the nonsense I'm seeing around the world, crypto is looking like a safe haven of financial freedom that people will continue to move to.
Actually it's not. You can "cash out" with anybody in a one on one transaction basis at anytime you choose. The whole point is that a bank is not involved.
 

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No more than 21 million Bitcoin ever?
 

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"Hmmm..."

If it's private, how would they know it was illicit? And why only Russia - at this time in history...?

double "Hmmmm...."
Coinbase is a major publicly traded corporation. The SEC can regulate Coinbase. If the govt puts a ban on Russia, they can strongarm American based companies into compliance and most will follow suit willingly. However, Russians that hold Bitcoin off Coinbase or any other exchange can not be vitimized by a U.S. Govt regulaiton - or any other government driven policy concerning their crpto holdings (which are private). They also can not regulate 1 to 1 transactions. This is why the Central Banks are freaking out and they are working with governments and major corporations to replace decentralized currency with CBDC's.
 

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It's getting harder and harder to play these 'spot the differences' games.
I hear you. This is very similar to saying the government isn't collecting your data, Facebook is....
 

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Actually it's not. You can "cash out" with anybody in a one on one transaction basis at anytime you choose. The whole point is that a bank is not involved.
I said "significant amount." If you want to do a cash transaction of a few hundred here and there you can find people no problem. There are also private crypto ATMs around that pay in cash (but usually require ID). But if you want to exchange more than that you're not likely to find anyone to trade with but Feds looking for crypto money launderers, or Mugsy and his buddies who have some sketchy ideas about robbing you rather than paying.

From my experience it's actually more difficult today to find people willing to exchange in person than it was a few years ago when it was more common. As crypto has gone more mainstream, the face-to-face stuff has gone away to a large extent.
 

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No more than 21 million Bitcoin ever?
Bitcoin is software. Software can be modified.

A software-defined limit now does not mean it will be the same limit in the future.
 

Lancers32

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Bitcoin is software. Software can be modified.

A software-defined limit now does not mean it will be the same limit in the future.
Yep.
 

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What is a Farady Bag?
 

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What is a Farady Bag?
A bag or wallet with a layer of metal mesh that acts as a Farady cage. It keeps electronic signals from getting in or out. Put your phone in one and it can't be tracked or communicate with any networks. No GPS, bluetooth, wifi, phone networks--they're all blocked. Put your keys in one and nobody can steal your car with a key fob signal amplifier. Climb into one and the aliens can't scan you. Put a democrat in one and the illuminati mind control beams will be defeated and they'll start to wonder why they voted for Biden.