I never said that the Bancor Team can freeze an account. The Bancor Team can change the parameters of the BNT token and its ownership status. This implies central control, don't you agree? This has very different control characteristics for other ERC20 tokens or ETH for that matter.

Exchange laws apply when one entity has custody over funds. In this case, Bancor doesn't have custody over user funds, but via the BNT smart contract, the team has custody over the funds in the smart contract. These funds belong to individual projects/liquidity providers, i.e. these funds don't belong to the Bancor team. This means the team maintains control over funds of third parties, which is where the regulatory aspects come into play. I am not a lawyer, but the team should consult their lawyers on this matter.

As a precedence, there was a legal injunction against Ripple along similar lines i.e. one entity maintained central control over the token, and they were fined accordingly. The Ripple case is quite interesting in and of itself but also quite different from the Bancor situation, but there are parallels.

"In the future, token creator's will be able to focus on their networks, products and users, when liquidity is fair and free for all." Bancor Co-Founder Galia Benartzi talks tokenization with Arjun Kharpal on CNBC.

https://ban.cr/tokenize

I understand. However I am not of the opinion that this constitutes central control. As Omri Cohen stated, "Decentralized does not mean lawless.". Bancor's emergency safety mechanism allowed the theft to have a lesser extent. But I'm pretty sure discussion on this matter should flourish in the upcoming times, and I take it this won't be the last regarding this, neither from users or the Team.


Quite interesting, as I was unaware of the Ripple situation. There may be parallels, but cases are indeed a situation of "to which their own". Thanks for sharing your thoughts!

In the future, token creators will be able to focus on their networks, products and users, when liquidity is fair and free for all.

https://ban.cr/tokenize

Even this was mentioned before about some security holes and it could lead to a big lose if someone made hack attempting on this network. But they ignored this warning in past and didn't took this seriously and now after this incident they have their focus to make secure this network and fixing all bugs there. That is the reason price is start recovering I hope in future this will become secure network.

The Bancor team had implemented safety precautions to mitigate any losses from a theft like the one that occurred earlier this month.

Here's what Co-Founder Guy Benartzi had to say about this:


Please see "The Road Ahead" for the rest of the article!

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But it is working exchange fake hack.

I will expect more security measure's from Bancor's team they had left opened emergency feature to freeze the asset. But this helped them alone wouldn't be better to be taken some extra measure for the tokens which are in their hot wallet. That theft have damaged those effected tokens which were having nice growth and lost the momentum. On decentralized exchanges smart contracts play role of trusted party if there is issue then what can you do. Smart contracts exploitation has caused in past such incidents as well.

An awesome 10-slide explanation of the Bancor Protocol in English and Chinese by eostechlover:
 https://ban.cr/10pics