Difference between revisions of "ShapeShift"

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(Created page with " {{Infobox_Company <!-- Feel free to remove comments like this when you add real info --> | company_name = ShapeShift | company_logo = [[Image:ShapeShift.png{{!}}200px]] |...")
 
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| company_name = ShapeShift
 
| company_name = ShapeShift
 
| company_logo =  [[Image:ShapeShift.png{{!}}200px]]
 
| company_logo =  [[Image:ShapeShift.png{{!}}200px]]
| key_people =    Erik Vorhees, Founder and CEO
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| key_people =    [[Erik Vorhees]], Founder and CEO
 
| foundation =    2014  
 
| foundation =    2014  
 
| location =      Zug, Switzerland; Denver, Colorado
 
| location =      Zug, Switzerland; Denver, Colorado
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| stocktwits =    <!-- StockTwits ID for the company, e.g. JohnLothian, or leave blank -->
 
| stocktwits =    <!-- StockTwits ID for the company, e.g. JohnLothian, or leave blank -->
 
| facebook =      <!-- Facebook Page -->
 
| facebook =      <!-- Facebook Page -->
| homepage =      ShapeShift.io
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| homepage =      [https://ShapeShift.io ShapeShift.io]
 
| press =          <!-- A link to where press releases can be found, or leave blank to omit -->
 
| press =          <!-- A link to where press releases can be found, or leave blank to omit -->
 
| blog  =           
 
| blog  =           
 
}}
 
}}
  
ShapeShift is a non-custodial [[cryptocurrency]] exchange which lets it foster a high level of anonymity for its customers.  
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ShapeShift is a non-custodial [[cryptocurrency]] [[exchange]] active in the United States that offers its customers an unusually high level of anonymity by not requiring them to open accounts ahead of transacting on its platform.  (Most cryptocurrency exchanges demand to hold their customers' cryptocurrencies as well as their fiat currencies on deposit rendering them "custodial" exchanges.)
  
ShapeShift received modest early venture capital support  In June 2015 ShapeShift cut off service to New York State residents in response to the state's  new regulatory policies requiring personal identification of everyone transacting with cryptocurrency in the state when New York adopted the [[BitLicense]].
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== Overview ==
  
[[Overstock]] CEO [[Patrick Bryne]] told ''Fortune'' magazine in August 2017 that Overstock was using ShapeShift to accept [[bitcoin]] and other cryptocurrency payments from customers.
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ShapeShift received modest early venture capital support from crypto enthusiasts [[Barry Silbert]] and [[Roger Ver]].  In June 2015 ShapeShift cut off service to New York State residents in response to that state's  new regulatory policies requiring personal identification of everyone transacting with cryptocurrency in the state when New York adopted the [[BitLicense]].<ref>{{cite web|url=http://fortune.com/2015/06/11/bitcoin-shapeshift-new-york-bitlicense/|name=Bitcoin company ditches New York, blaming new regulations|org=Fortune|date=February 19, 2019}}</ref> Later investors in ShapeShift include California-based Pantera Capital and FundersClub and Colorado's Access Venture Partners.<ref>{{cite web|url=https://www.wsj.com/articles/how-dirty-money-disappears-into-the-black-hole-of-cryptocurrency-1538149743|name=How Dirty Money Disappears Into the Black Hole of Cryptocurrency|org=Wall Street Journal|date=February 19, 2019}}</ref>   
  
Erik Vorhees, Founder and CEO of ShapeShift, has long refused to adhere to standard practices for antimoney laundering and customer identification that are commonly followed by U.S. financial entities including cryptocurrency exchanges. Vorhees has noted that businesses like ShapeShift are not clearly subject to those regulations. ShapeShift processed millions of U.S. dollars worth of bitcoin into untraceable [[Moner]] that had been stolen by hackers, believed to be from North Korea, who executed the so-called WannCry attacks on businesses and governments in 2017 and 2018.<ref>{{cite web|url=https://www.wsj.com/articles/how-dirty-money-disappears-into-the-black-hole-of-cryptocurrency-1538149743|name=How Dirty Money Disappears Into the Black Hole of Cryptocurrency|org=Wall Street Journal|date=February 19, 2019}}</ref>
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In a vote of confidence for ShapeShift's low-overhead customer approach, [[Overstock]] CEO [[Patrick Byrne]] told ''Fortune'' magazine in August 2017 that Overstock was using ShapeShift to accept [[bitcoin]] and 40 other cryptocurrency payments from customers.<ref>{{cite web|url=http://fortune.com/2017/08/08/overstock-digital-currency/|name=Beyond Bitcoin: Overstock Lets Customers Pay With More Than 40 Alt Coins|org=Fortune|date=February 19, 2019}}</ref>
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Erik Vorhees, the founder and CEO of ShapeShift, long refused to adhere to standard practices for antimoney laundering and customer identification that are commonly followed by U.S. financial entities including cryptocurrency exchanges. Vorhees has noted that businesses like ShapeShift are not clearly subject to those regulations. ShapeShift processed millions of U.S. dollars worth of bitcoin into untraceable [[Monero]] that had been stolen by hackers, believed to be from North Korea, who executed the so-called WannaCry attacks on businesses and governments in 2017 and 2018. In a September 28, 2018 Article, Wall Street Journal reporters Justin Scheck and Shane Shifflett identified ShapeShift as the largest processor of fraudulently obtained bitcoin among all cryptocurrency exchanges active in the U.S. at the time.<ref>{{cite web|url=https://www.wsj.com/articles/how-dirty-money-disappears-into-the-black-hole-of-cryptocurrency-1538149743|name=How Dirty Money Disappears Into the Black Hole of Cryptocurrency|org=Wall Street Journal|date=February 19, 2019}}</ref>
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ShapeShift had already announced earlier in September 2018 that it would implement customer identification procedures. Vorhees told ''CoinDesk'' at the time that “KYC was not added as a result of any enforcement action, but rather as a proactive step we took to de-risk the company amid uncertain and changing global regulations.”<ref>{{cite web|url=https://www.coindesk.com/crypto-exchange-shapeshift-erik-voorhees-kyc-proactive|name=Crypto Exchange ShapeShift’s CEO Says Move to Collect IDs Was ‘Proactive’|org=CoinDesk|date=February 19, 2019}}</ref>
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Vorhees wrote in a January 2019 blog post that the company had laid off 37 of its approximately 100 employees due to external business conditions that it characterized as "crypto winter."<ref>{{cite web|url=https://medium.com/@ShapeShift.io/overcoming-shapeshifts-crypto-winter-and-the-path-ahead-73f59bb8cf13|name=Overcoming ShapeShift’s Crypto Winter and the Path Ahead|org=Medium|date=February 22, 2019}}</ref>
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Several months later, in February 2019, Vorhees told attendees at ETHDenver, an [[Ethereum]]-focused developer conference, that ShapeShift was to begin testing a new platform that integrates several ShapeShift services, including its wallet, KeepKey, and pricing service, CoinCap. Vorhees maintains that ShapeShift had not altered its non-custodial stance vis-a-vis customers and their cryptocureency holdings.<ref>{{cite web|url=https://www.coindesk.com/rethink-renew-shapeshift-ceo-erik-voorhees-to-rebrand-crypto-exchange|name=Rethink, Renew: ShapeShift CEO Erik Voorhees to Rebrand Crypto Exchange|org=CoinDesk|date=February 19, 2019}}</ref>
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== References ==
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<references />

Latest revision as of 17:38, 22 February 2019

ShapeShift
ShapeShift.png
Founded 2014
Headquarters Zug, Switzerland; Denver, Colorado
Key People Erik Vorhees, Founder and CEO
Twitter @ShapeShift_io
LinkedIn Profile
Website ShapeShift.io

ShapeShift is a non-custodial cryptocurrency exchange active in the United States that offers its customers an unusually high level of anonymity by not requiring them to open accounts ahead of transacting on its platform. (Most cryptocurrency exchanges demand to hold their customers' cryptocurrencies as well as their fiat currencies on deposit rendering them "custodial" exchanges.)

Overview

ShapeShift received modest early venture capital support from crypto enthusiasts Barry Silbert and Roger Ver. In June 2015 ShapeShift cut off service to New York State residents in response to that state's new regulatory policies requiring personal identification of everyone transacting with cryptocurrency in the state when New York adopted the BitLicense.[1] Later investors in ShapeShift include California-based Pantera Capital and FundersClub and Colorado's Access Venture Partners.[2]

In a vote of confidence for ShapeShift's low-overhead customer approach, Overstock CEO Patrick Byrne told Fortune magazine in August 2017 that Overstock was using ShapeShift to accept bitcoin and 40 other cryptocurrency payments from customers.[3]

Erik Vorhees, the founder and CEO of ShapeShift, long refused to adhere to standard practices for antimoney laundering and customer identification that are commonly followed by U.S. financial entities including cryptocurrency exchanges. Vorhees has noted that businesses like ShapeShift are not clearly subject to those regulations. ShapeShift processed millions of U.S. dollars worth of bitcoin into untraceable Monero that had been stolen by hackers, believed to be from North Korea, who executed the so-called WannaCry attacks on businesses and governments in 2017 and 2018. In a September 28, 2018 Article, Wall Street Journal reporters Justin Scheck and Shane Shifflett identified ShapeShift as the largest processor of fraudulently obtained bitcoin among all cryptocurrency exchanges active in the U.S. at the time.[4]

ShapeShift had already announced earlier in September 2018 that it would implement customer identification procedures. Vorhees told CoinDesk at the time that “KYC was not added as a result of any enforcement action, but rather as a proactive step we took to de-risk the company amid uncertain and changing global regulations.”[5]

Vorhees wrote in a January 2019 blog post that the company had laid off 37 of its approximately 100 employees due to external business conditions that it characterized as "crypto winter."[6]

Several months later, in February 2019, Vorhees told attendees at ETHDenver, an Ethereum-focused developer conference, that ShapeShift was to begin testing a new platform that integrates several ShapeShift services, including its wallet, KeepKey, and pricing service, CoinCap. Vorhees maintains that ShapeShift had not altered its non-custodial stance vis-a-vis customers and their cryptocureency holdings.[7]

References