Phoenix will no longer be holding keys to shareholder funds


#1

Unfortunately, there has been a theft of NuShare holder funds stored at SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv. I have failed to secure them. It has become obvious that I should no longer hold keys to shareholder funds. Accordingly, I have already transferred all NuShare holder NSR, US-NBT and CN-NBT to Esko Esko, Vice Chief of Liquidity Operations. He has a consistent and long record of holding and transferring shareholder funds securely. At the moment, I don’t hold any NuShare holder funds and do not intend to ask to do so in the future.

It is believed the compromise occurred at the same time as the last one. A particular VPS thought to be compromised had at one point had this shareholder wallet on it. This knowledge only came to light after the theft was discovered. I had mistakenly believed this shareholder wallet had never been used on the VPS thought to be compromised in connection with the compromise of the sigaint email service some time ago.

I have worked very hard to make Nu a success, so the knowledge that I have contributed a great deal to its recent problems is quite painful for me. It certainly wasn’t what was intended. I have always tried to establish and defend the integrity of the project, and the technical and inadvertent mistakes I have made handling funds have undermined this important effort.

Quite reasonably, there will be suspicion that I stole the funds. I need to say clearly that I did not steal the shareholder NSR at SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv, though I deeply regret this isn’t obvious. In my defense, I sent about $600,000 worth of US-NBT and CN-NBT to Esko after we learned of the theft, demonstrating my good will.

The theft, which has taken place over a period of time of about the last week, has resulted in a temporary cratering of the NSR price. Stolen funds appear to have been sold at Alcurex at a rapid rate. It appears most have already been sold. Therefore, I expect a reduction in the rate at which NuShares are being brought to market for sale. The change should give NuShares a chance to rise again, as it did just before the Poloniex delisting announcement, and as it did again just before this latest theft. We have something valuable here, and the market has confirmed this twice in the past two months with large surges in the NSR price. Our strongest price surge even happened after the Poloniex delisting. We are doing something innovative and valuable here, and there is some recognition of that. NuShare buybacks are currently occurring at a rate of $698 per day, which is a very large figure next to our market cap of only several hundred thousand. Therefore, despite this setback, I am optimistic that NSR pricing will improve a great deal, and likely soon.

I am very sorry and I feel deeply ashamed that I have allowed the interests of the Nu project to be undermined with the way I secured shareholder funds. The situation is contained, as I no longer hold NuShare holder assets. It can’t happen again. I came here to prove the Jordan Lee liquidity engine works reliably to secure a peg. I have proven that. I came to restore NSR buybacks. I accomplished that. Therefore, it makes sense for me to continue to step to the side and let others begin to play a bigger role.

Finally, I have supported moving handling to multisig addresses. I had discussed and arranged very specific plans to transition to multisig addresses in the days just before the Poloniex delisting announcement. Plans were put on hold due to the delisting. When the price once again rose a little more than a week ago, I once again resumed moving forward on those plans. It wasn’t quite soon enough. As those familiar with our history will know, major problems with multisig handling can and have occurred, so it must be done carefully. I expect that this effort will continue to move forward, though it is fundamentally a matter for Esko and shareholders.


Report of Lost Funds 2017
Motion for manual exchange?
Park Rate Voting
#2

Is there any way for people who lost money because of your failure in securing shareholder funds to hold you financially accountable?


#3

So one actor held more than the circulating marketcap of nsr and nbt combined. And one actor currently holds more than the combined circulating marketcap of Nu assets, but we should feel comfortable because it’s now a different actor?


#4

This is definitely disappointing… but honestly I was dumbfounded when my 1 satoshi orders started filling on Alcurex. Now it makes sense. I have confidence in Esko as well but do agree it’s disheartening to have a single point of failure regardless of how secure that single point may be. This is supposed to be a decentralized network so we should do our best to keep roles distributed as much as possible.


#5

As well? I doubt that @Nagalim expressed to have trust in @jooize with just a single syllable. Pretty interesting that you @Proteus joined May 2nd and by now have trust in “Esko”, whose forum name is @jooize. You know what? No fucking idiot on this forum trusts “Esko”. That dude doesn’t even know what NAV is, but now he is supposed to handle hundreds of thousands of shareholder funds? Are you serious dude? Tell me what you base your conclusion on. Your account is one month old. Why do you trust “Esko”? Why don’t you trust me? I can hold your funds in a secure place if you like. Just send me your Bitcoin and I’ll make sure nobody can steal them, just like the untouchable @phoenix made sure nobody can steal shareholder funds.


#6

The market has just determined the real price for NSR, and let’s wait until exchanges offer NSR/LTC pairs and you might wonder again why your 1 litoshi orders get filled.


#7

@Phoenix, where are your standard terms “shareholders” and “the market”? NSR is almost worthless now, right? Why do you always say that scammers are to blame when the NSR price dumped and you are to be celebrated when the price rose? Let’s put it in your terms. NSR is almost worthless now and why? Because shareholders and the market have spoken. You are shareholders and you are the market. You own the majority of the network and you produce fake volume. You are the scammer and you stole the funds.
It is great to see @jooize in the driving seat now. Finally someone we can take to court! Thanks @phoenix.


#8

Looks like NSR is up 88% in the last 24 hours to 13 satoshis. This makes sense on the heels of this very negative announcement, because the negative event is already in the past and was already priced in to NSR.

The theft and sale of stolen NSR means an excellent chance to get underpriced NSR is just ending. Market participants understand this.

@Mavo you might just have to accept that making a profit on your BlockShares is a real possibility. Why not work for that?


#9

“This is good news.” Yah, ok.


#10

There is a great metric on coinmarketcap.com that says that NSR ranks 258th right now. The market has spoken. NSR sucks. The biggest shit coins on earth are worth more than NSR. The market has spoken. Pinkcoin is 10 times as much worth as NSR. The market has spoken. @Phoenix sucks like a big pile of shit. The market has spoken. Dude, you are so ridiculous. The market has spoken. Shareholders have spoken :smiley: it is hilarious.


#11

Guy, I feel like you’re being unreasonably hostile towards me. I was referring to Phoenix’s vote of confidence, no one else’s. I assure you that attacking people especially the people who actually have the ability/responsibility of handling or distributing these funds amongst custodians is not really helping you or anyone else. I definitely have NO desire to get in a forum war with you though bud so I’m sorry but this will probably be the last time I ever respond to you should the conversation continue in this direction.

<3


#12

Working for Blockshares means working for you. My personal bet is that you hold at least 50k Blockshares.


#13

How much has been stoled.

http://nuexplorer.ddns.net/address/SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv/1/newest indicates the address had close to 1b NSR…


#14

Forum war :smiley: As if I’d care about you ridiculous little clown. Let’s finish our conversation right here. Oh wait: why call yourself @Proteus instead of protozoon? I guess that forum name is still available! Go for it!


#15

Oh I see you’re just one of those shitty trolls whom think sooooo low of something that you feel the need to regularly check their forums and basically provide more posts & traffic than the people who actually give a shit lol… I honestly sometimes wonder what the life of your kind looks like in person… Sad really. You’d think with the way crypto markets have been in the last year or two everyone should be making enough profits that they wouldn’t feel the need to furiously flame the internet.


#16

Not really wondering what you are wondering about, sorry. But also not wondering that you are wondering at all, Mr. Protozoon.


#17

Why not burn the stolen coins
Issue a new version of NSR
Reduce the total amount
Is the repurchase of the NSR burned?


#18

Stolen coins were already dumped according to Phoenix’s account of the events.


#19

Aren’t there any measures for the stolen coin


#20

There is a great metric on coinmarketcap.com that says that NSR ranks 258th right now. The market has spoken. NSR sucks. The biggest shit coins on earth are worth more than NSR. The market has spoken. Pinkcoin is 10 times as much worth as NSR. The market has spoken. @Phoenix XXX like a big pile of XXX. The market has spoken. Dude, you are so ridiculous. The market has spoken. Shareholders have spoken :smiley: it is hilarious.