Bitcoin Forum

Like that wallet backed by loyds of london.  There's still a chance MtGox still has everyone's money or 90% of it.  They probably didn't have enough time to re-write their software, so they stopped all transactions.  Coming back insured by a company like lloyds of london is probably the only way anyone would ever use them again.

Now I know nothing of what's going on and I wouldn't put money on this, but I'm trying to figure out why they bought Gox.com

Their didn't stop all transactions you could still deposit but not withdraw and stop mtgox will never return the money that they took.

yes if once they stop this all then all coins under their control and its never recoverable for any one just we have one more biggest scam

I wouldn't trust an insurance company dumb enough to insure those bozos.  Lloyd's also would charge a rate commensurate to the risk, that is, it would be exorbitant, because the risk would be insane.

We do not need a vampire Gox rising from the dead to suck more blood.  Just put a stake through its heart and bury it at a crossroads.

They didn't stop all transactions at first, it was all withdrawals. Something totally different. You could still deposit money and buy from there.

The insurance for that other wallet was 3% a year.  That's a lot, but it's an option.  Maybe an insurance company is bringing in their own staff to take over mt gox.  Maybe this company buying it will pay for any missing bitcoins or offer free insurance and make money on trades to cover the insurance for 1 year (big ifs).

As for the loss.  I'm sure they have a record of each customer and what amount they should have.  If they still have the coins or money, they can give it back to these people anytime they want or send it to an address they give them.

I don't know about other countries, such as Japan, but in many countries, that would be felony fraud or its equivalent.

How do you know they're not insured? Surely they'll have to have some kind of insurance to even run a business like this? I also very much doubt people will trust Mark with anything Bitcoin related again.

Even if they did, and I'd doubt the judgment of anyone who would insure a fly by night operation like Gox, I seriously doubt they'll pay out on a loss of, supposedly, $409 million when that loss resulted from the willful and possibly criminal actions of the insured.

oh cool, i can still deposit ! nice idea for an "exchange"  ;D

I think in some asian countries, if your company goes bankrupt you go to jail.

I wouldn't really call Gox a 'fly by night operation', but as insurance companies tend to do, they always try wrangle out of big payments. It's going to be very interesting to see what happens if they do go under and how much their debts and assets are valued at, especially with the fluctuations in value of Bitcoin.

I would.  They just, in fact, literally flew by night, moving from their main offices (because they were getting protested) to an undisclosed location.  Can't get more fly by night than literally flying by night.

Poor management issue, should setup blocklist that Mt.Gox management team

Yes, I'm sure any insurance company would be happy to insure hundreds of millions of dollars, with completely unaudited books, and no financial transparency, in an unregulated market.

Why wouldn't they?

https://bitcointalk.org/index.php?topic=23938.msg1177353#msg1177353

MagicalTux:
Fiat balances and Bitcoin balances would be accounted separately based on current rules, especially because of the difficulty to give a value to a given balance in Bitcoin (value at current rate or based on depth). This may change as we are discussing with a large insurance company in Japan to get all funds deposited on MtGox insured. This will however be only possible once the Japanese FSA provides its position on Bitcoin - which we expect to happen in the next months.

Moving office isn't exactly packing up and disappearing... at least not yet  :D.

Right.  And disappearing without packing up... what's that called?

Getting evicted because you can't afford to pay the rent?  :D

Take my word for it, you still get your shit packed up, it's just not by you :)

A few months ago, I wrote on here that US exchanges should be SEC-registered broker/dealers, like every stockbroker in the US. That means exams and audits and regulation by FINRA. It also means insurance. Brokers pay premiums to the Securities Investors Protection Corporation. When a broker goes bust, the SIPC pays customer losses up to $500,000 per customer. They paid off for Madoff customers, for example. (Mr. Madoff is now Prisoner Number #61727-054 at Butner Federal Correctional Institution.)

The "deregulation" fanboys on here hated that idea. They were wrong.

Moving "offices" to a P.O. Box and no disclosed location is disappearing of a sort.

Andreas Antonopoulos, Erik Vorhees and other pundits claim that Mt.Gox is definitely finished now, though. Could they be wrong?

Bullshit. I lost a lot of BTC at gox, so you'd think I'd agree with you, but no, not at all. You see Bitcoin as an investment, just another financial instrument. But that's not what Bitcoin, or more accurately cryptocurrencies, are. Not by a long shot. When the WWW appeared in the mid-90's, were you one of the people who thought it was just a trendy way to buy stuff? Did you believe it was the end of the Internet when the dot com bubble burst?

Also, consider what you're actually saying here. You'd rather trust some slimebag "regulators" than a cryptographic proof system? Exchanges can easily and costlessly publish proof-of-reserve data, which I'm pretty sure is going to happen after this MtGox fiasco.

As for me, I thought it was a horrible waste of bandwidth and was dumbing down the Internet.  YMMV.