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Report of C-CEX situation with DRK because of feb, 23 accident.

Discussion in 'General Discussion' started by c-cex, Jul 2, 2014.

  1. c-cex

    c-cex New Member

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    We have very bad situation with DRK. The problem take it's beginning from feb, 23 accident. http://bitcointalk.org/index.php?topic=418700.msg5503550#msg5503550

    After "darkman" that find my mistake and get used of it made return of some DRK, exchange had about 250K DRK in wallet with discrepancy of about 50K DRK. Then I reversed DRK/BTC transactions made with him. After that I made another big mistake: I did not disabled withdrawals for users with negative balances. I give back them DRK and deducted apropriate BTC amount (reversed trades). They all got +DRK and -BTC. Almost all of them got negative balance in BTC because of recent withdrawals and positive on DRK. So they withdraw that DRK too not giving back BTC and did not use their accounts anymore. This way exchange become short on BTC and DRK. Additional DRK was withdrawn that shouldn't be at that moment.

    At that time I looked at that and did not think that it gives me some problem, that's why DRK market left open. 250k balance... big enough... But after feb, 23 almost everybody stopped trading at c-cex, and what I saw during 4 months is only withdrawals. So exchange came to 0 DRK on wallet and about 50K discrepancy. This is a situation we have today. Several people got DRK withdrawals queued for weeks. I was hoping to pick up trades and work it out somehow, but that was not happened.

    Nothing happened to exchange today or yesterday. All that happened in feb, when exchange startup was only 13 days old. With no investements. All worked on only enthusiasm of 1 developer without any reasonable funds (me). Also, we had no security accidents after feb, 23.

    We are very short on options. We want to refund all customers and always will search for way to do it. Investors, expanding business, new projects. While exchange work we will make all possible efforts to refund our customers loses. If we could get volume if 4000 BTC/day we will need only about 1 year to refund all. Meanwhile we created DRK hold balance to memorize DRK coins our customers should really have. It is visible in "My assets".

    We will assist any investigation attempts of finding persons made us short with BTC and DRK in february. We have logins, e-mails, chatlogs, account activity logs and IP addresses they used.

    We will not close exchange because this situation affects only DRK. All other 107 coins are good and exchange works fine.

    We are very sorry about all that happened. We are committed to working our way out of this situation and are here to stay.

    We urge DRK community to support us in this effort. All new deposits/withdrawals will remain unaffected in the DRK market. We hope you will support us in our efforts.
     
    #1 c-cex, Jul 2, 2014
    Last edited by a moderator: Jul 2, 2014
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  2. darkcoinz

    darkcoinz New Member

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    Ah finally an explation ive been waiting two days with no reply through support!
    Darks just vanished
    And no they dont show in my assets like you claim
    So with a year of unrealistic tradeing you can pay back the darks?
    Does that mean if darks go up 100 fold it will take 100 years?
    So when is it we get those Darks back?
     
    #2 darkcoinz, Jul 2, 2014
    Last edited by a moderator: Jul 2, 2014
  3. c-cex

    c-cex New Member

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    They should show like "DRK on hold" Check it out. If not - open support ticket - We will resolve it.
    if we get volumes compared to biggest crypto exchange refund will be possible very fast. Meanwhile we have huje amount of job to do to become bigger.
     
  4. darkcoinz

    darkcoinz New Member

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    Well it does not say DRK on hold.
    What fill out another ticket so i can not be replied to again?
    Your exchange will not compete with other exchange when your takeing peoples money of them.
    You better sort it out real quick once word gets out you will be finished
     
  5. flare

    flare Administrator
    Core Developer Moderator

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    I 'liked' your post to enable you to post URLs - now you can update your post with working link. ;)

    On topic: Good to see you are so transparent about this incident - i wish you good look with resolving this.
     
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  6. c-cex

    c-cex New Member

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    If it is about cancelled orders - Your ticket answered. We did not take any coin from people. Please, read first post carefully to understand what happened.
     
  7. c-cex

    c-cex New Member

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    Your coins are now on "hold" balance. You can see it in "my assets"
     
  8. darkcoinz

    darkcoinz New Member

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    Well you have my coins and wont give em back or tell me when I will ever get them. If that isnt takeing them from me then what is it?
    And no you didnt answer my ticket.
    Its rude to take money from people and then not even respond to their messages.
    If you are genuinely trying to sort the problem then reply to the people messages. Let them know why they cannot withdraw their money.
    First I read on twitter that its just a problem with the wallet (by the way making Darkcoin and the devs look bad) now you saying its because your broke.
    Wanting some advice?
    1. Reply to all messages
    2. Message the people that you have taken from and tell them what you done.
    3. Sort out your finances because this will send you bankrupt very quick
     
  9. c-cex

    c-cex New Member

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    Sorry, but we don't have Your coins.
    We respond to all tickets. But now it takes some time because of much of recent ROX coin issues.
    Your advices are reasonable. Thank You.
     
  10. darkcoinz

    darkcoinz New Member

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    Well you did have my coins the other day
    I paid you for my coins and this was well after the Feb hack
    So did you ever have my coins or did I just pay you money for nothing?
    Do I get them back?
    And if so when?
     
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  11. c-cex

    c-cex New Member

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    We do really want and will make all possible efforts. But first we need to get some volumes to make some earning. We are startup without any investments so can pay only from earning.
     
  12. darkcoinz

    darkcoinz New Member

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    Well when people see that your an exchange that is in debt so bad that you have to hold customers coin do you really think everyone is gonna start giving you money?
    No they are gonna quickly take it out before you decide to hold their money or go bankrupt.
    All forums are gonna fire up in about 2 days and everyone will withdraw.
    You cannot rudely hold peoples money and not even respond to messages then expect the people to give you even more money to get you outta the hole.
    If someone has dug a hole to deep to get out of the solution is not to give em another spade it is to take the spade from them so they can cause no more damage.
    You must find another way to fix your problem or you will go bust.
    I dont wanna see you go bankrupt but I also dont wanna see you take even more money from people.
    How do we know your not just out to scam us?
     
  13. c-cex

    c-cex New Member

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    Why should we decide to hold coins that we actualy have on wallet balances. We have much of coins at the moment. much more that for a hundred of thousand dollars value. We keep it safe. Our security system is strong and proven. I say again - we had no accidents after feb,23. Current situation shows that people do not take coins from exchange - we have much of new deposits. Even some new DRK deposited today. That what happened happened only in feb, 23.
     
  14. darkcoinz

    darkcoinz New Member

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    Well like i said i brought my coins from you well after the feb hack
    So my coins never actually exsisted? So why is it that you are holding my coins again?
    Thats very illegal
     
  15. c-cex

    c-cex New Member

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    Looks like You did not read my first post. Please, do it carefully. I explained situation clearly and I admit that there was mistake to neglect about 50k discrepancy of DRK at that time. At the moment all we can is work and earn to make refunds.
     
  16. I want to share this conversation I had on Skype with C-Cex to the community:

    [14-06-23 14:05:55] C-CEX: When we reverted that trade made by hacker we gave our users DRK back and deduct their BTC. Most of them was in negative BTC balance because they already withdrew their BTC. But they was able to withdraw DRK too. So we lost even more refunding people with DRK. That's why we get short on DRK. It was explained already in my post on btctalk
    [14-06-23 14:06:28] C-CEX: We was 13 day old when this happens
    [14-06-23 14:06:37] C-CEX: 13 days only exchange worked.
    [14-06-23 14:06:50] Max: So you're saying that you used MY Darkcoins to refund other users' losses? Is that what you're saying?
    [14-06-23 14:06:53] C-CEX: And we got big volume of DRK and BTC in 13 days from start
    [14-06-23 14:07:53] C-CEX: There is no Your, or my coins. I explained situation. That happens. I did not take any customer's coin.
    [14-06-23 14:08:13] Max: Yes there is.
    [14-06-23 14:08:22] C-CEX: Yes, that happened because of terrible and stupid mistake in exchange code. But it was fixed in minutes after that happened.
    [14-06-23 14:08:34] C-CEX: So we have situation we have.
    [14-06-23 14:08:47] C-CEX: I'm trying to work it out from my earnings and I started it with 50 DRK for You
    [14-06-23 14:08:58] C-CEX: Once I have more - I will send it to You
    [14-06-23 14:09:04] C-CEX: I will refund all You lost.
    [14-06-23 14:09:42] C-CEX: This issue covers only DRK - all other coins on exchange are fine.

    Use your earnings, be there DRK (but you stopped trading DRK so that's not gonna happen) as you partially did with me or BTC, USD, EUR, ... to refund us immediately.
     
  17. c-cex

    c-cex New Member

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    This is exactly what we are going to do. Once we have enough earning we start to refund all this DRK. In order to have that earning we need good trading volumes. And we work 15 hours/day for that goal.
     
  18. Minotaur

    Minotaur Well-known Member
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    c-cex I am owed 2.45 BTC since Feb 23rd non of my transactions were with the hacker, so far you've given back like 1% of what is owed to me since February. Your volume expectations are unrealistic I think the only way you could solve this is by getting funding from a third party you need an investor. I wish you the best as I would like to see my money again some day but I don’t think the volume projections are realistic you either get capital to cover your debt or you close shop, because if you don’t pay people back your volume will never grow but if you do then you have a chance. I like your openness but you need money.
     
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  19. fernando

    fernando Powered by Dash
    Dash Core Group Foundation Member Moderator

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    I agree. You have a recognized brand and some working infrastructure. You are able to save the business. Just paying when you can won't be enough and you'll destroy what you have. Any investor you bring will understand this and will ask for a big chunk of the business, but I don't see any other way to do it. It is better to have a lower percentage of something than having a bigger percentage of nothing.
     
  20. c-cex

    c-cex New Member

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    Thank You for reasonable comments.
    We are not just sitting and waiting volumes. We understand how serious this situation in marketing and all other aspects. Right now We have very promicing marketing strategy in development with very skilled professional. Next months will show many good changes in our business. We are far not give-up and have very much good ideas and enthusiasm about our platform.
     
  21. LittleFinger

    LittleFinger New Member

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    What a shame. Its a fairly good looking site, with decent features. The way this is being handled is crazy though.
    I still dont see an explanation for what happened to missing coins deposited after the hack. These should not have been under a communist style hold in order to offset what was stolen from the site.

    The fact is... there IS such as thing as yours and mine when it comes to the coins, or any coins deposited before or after the hack. You cant just say "Ok we were hacked, everyone now and anyone who deposits in the very near future will have to give a little to lessen the impact"
     
  22. acidburn

    acidburn Active Member
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    I hope you've saught legal advice since this smells of mtgox all over again. I wouldn't be surprised if a law suit came your way
     
  23. c-cex

    c-cex New Member

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    Coins deposited after feb accident was withdrawen by users. The problem is explained in 1 message of this thread. We did not count that problem of discrepancy of 50k DRK is very big when we had 250K DRK on main wallet balance.
     
  24. darkcoinz

    darkcoinz New Member

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    So you thought that it was okay to sell us all coins that don't exist?
    You you have given us all the impression that we are buying coins when really we are not because you don't have them
    So we were lied to about the fact that we were buying coins.
    The Site said I brought coins but this was a lie because you didn't actually have them
    I believe that is what we call fraud
     
  25. c-cex

    c-cex New Member

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    We were hoping to pick up volumes and this way this discrepancy will not very much matter. But You are right. We had to do it in feb, as I say before. fraud? - not exactly. fraud is when someone get benefit from this. We did not get any benefit. Only problems.
     
  26. darkcoinz

    darkcoinz New Member

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    Mate I know your English is bad so ill help you out.
    This comes straight from google
    fraud
    frɔːd/
    noun
    1. wrongful or criminal deception intended to result in financial or personal gain.

      I believe what you done was wrongful
      You also intended to make personal and financial gains

      So I ask you how is what you done not EXACTLY fraud?
     
  27. c-cex

    c-cex New Member

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    "financial or personal gain."
    We did not get any gain. Only loss.
     

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