Re: BTC-e hacked ??

This situation with BTC-e is not important just to BTC-e but for the whole crypto exchange system.

For example, SimpleFX (exchange?) is not allowing transfers between crypto and hard currency balances. You can trade crypto-hard pairs but you can't: deposit crypto then buy usd and then use that usd to fund mt4 account or to withdraw that usd bought onto EXCHANGE(?). FXOpen does not allow US citizens. Will the rest of exchanges follow those rules?

If theres one thing I've learnt from all this bullshit is that the biggest problem is crypto is fiat. If a viable living economy can exist purely based on crypto, then the ties to fiat can be cut and these government shakedowns can end

That's the problem only with USD cash because US gov thinks that if you accept or send USD that you are doing business with USA. And you are actually doing business with them because dealing with any foreign fiat you are actually influencing their country payment system by freezing or releasing their own funds onto which they have no legal influence (if there were not those AML and so USA treaties). It just depends the scale of that business when they will react.

I'm pretty sure the legal justification used is that they were serving US customers while acting as an unlicensed money services business. If they had (like many other exchanges) prohibited US residents --- or at least asked customers to confirm they weren't US residents and IP restrict based on region --- maybe this could have been avoided. Or not; maybe it's highly political and this is really about US and USD hegemony.

Yes US citizenship is important because nobody can get any US fiat without dealing with some USA entity, person, bank or company. If you trace any US cash back you will find that that cash was passed by someone from USA. So controlling where USA citizens can spend their US cash they have control over US cash. They just want to control the flow of their own currency, more then any other country.