Bitcoin Forum

Has anyone considered from a legal perspective if MtGox is insolvent whether or not it makes sense to have:

a) More fiat in your trading account?

b) More Bitcoin in your trading account?

I feel like, given the legal status of fiat as currency globally, in the event of liquidation there may be some claim by investors holding fiat?

However, given the unclear legal status of crypto, maybe you rank lower in the totem-pole in the event of lqiuidation? I mean, if it has no legal status then technically do you even have a claim against MtGox as a defunct company?

good question, I keep my money in fiat for the time being,
if btc goes down I buy, somehow I still hope that btc transfers will go ahead in the future

call me optimistic.

You are optimistic. :)

I would say BTC, because even if they dont have any liquid cash, you should in theory still be able to withdraw your BTC, since that doesnt require any money or banking partner for withdraw

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

You do realize that for every Bitcoin bought one is sold, right?

MtGox does not buy or sell. They match buyers with sellers.

Theoretically yes..but who know if mtgox really hasn't touched the bitcoin.......

I buy back 50% btc @this price
low than chinese platforms is ok

Although they also likely skimed based on transaction and buy/sell fees. I wouldn't be surprised if they have some sort of calculation akin to M0 and M1 money supplies and based on that they "play/use" the difference (kinda like a derivatives transactor to provide further insurance value, but instead of using it for stability purposes, they gambled with it).

yeah, but btc withdrawal is suspended, and when it was not suspended, it was not going through either.

Exacly, BTC withdrawals weren't working (well) for weeks. They finally acknowledge this and say they are going to fix it and what do people do? They freak out, instead of being happy that it is finally being looked at.

its all good, I am happy that they are fixing it, it is just soo easy at this point to rather syphon off the btcs and do a runner, we are talking about $M-s here, and gox's reputation is pretty tarnished by now. Is it worth fixing? I hope so, I have quite a few $1000s sitting there, would I keep the funds there when I have a chance to move out? not that sure about that!

Oh, by all means, take advantage of the frenzy. This recent development must be a wet dream for anyone that does arbitrage.

3pm in Japan now and no word yet.  Either they are waiting until the end of the workday to announce something, or as many people have said, they problem is much worse than their last notice let on.

Is their website the first spot they will post a new notice or do they post quicker to Facebook and Twitter?

A more precise time for the update sure would have been nice.

There is https://twitter.com/mtgoxalerts, but all it seems to do is point to the posts on https://www.mtgox.com/news.

Particularly after reading that 2010 Mtgox thread that shows that Gox didn't even hash user passwords and could have accessed the cash and coins without problems.

fiat

BTC is my vote.

Seems judging from the price, the overall sentiment is split.

Yes, but i strongly feel that your chances of withdrawing btc are better than withdrawing USD

This thread isn't about chances of withdrawing what.

It is about the company becoming insolvent, with no login page just a notice "administrators/liquidators appointed".

At that point - better to be a creditor with BTC or fiat?

If they are insolvent then say goodbye to both fiat and btc. Holding one over the other would be pointless

If they close down or run, then I would rather fiat. If they withdraw the BTC it is gone forever. If they withdraw fiat, it can be traced, confiscated, and maybe eventually returned to the customers. I would just make sure to screen cap or have some sort of proof of the amount of fiat you have on Gox.

This works for any case on any exchange, when there is fear you might loose holdings, always go back to fiat, where laws are applicable.

Yeah, money seems stuck in there either way at the moment. It would probably be easier to get cash back if the company went down, but it'll probably be easier to get BTC out once they start letting withdrawals happen again, but who knows if they ever will. Once they do everybody is going to want to get their money out ASAP and I don't know how they'll manage this.

good points.