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Title: What were the reasons behind the mtgox collapse? Post by: hensi on February 28, 2014, 01:58:01 PM i am really shocked by the collapse of mtgox.what were the reasons for its collapse?
Title: Re: What were the reasons behind the mtgox collapse? Post by: dreamspark on February 28, 2014, 02:09:00 PM No coins left....
Seriously no one know the exact reason until MK says. Until then its all speculation. Title: Re: What were the reasons behind the mtgox collapse? Post by: RaTTuS on February 28, 2014, 02:09:06 PM greed
Title: Re: What were the reasons behind the mtgox collapse? Post by: evansearle42 on February 28, 2014, 03:46:20 PM i am really shocked by the collapse of mtgox.what were the reasons for its collapse? hacker Title: Re: What were the reasons behind the mtgox collapse? Post by: meanig on February 28, 2014, 03:48:49 PM Still unknown. Mark might know but he isn't saying.
Title: Re: What were the reasons behind the mtgox collapse? Post by: hensi on February 28, 2014, 04:13:50 PM No coins left.... really? the owner hasnt told that why has the $300million company suddenly shut down?? its really scaring me. can this happen to other currency exchanges too?Seriously no one know the exact reason until MK says. Until then its all speculation. Title: Re: What were the reasons behind the mtgox collapse? Post by: grifferz on February 28, 2014, 04:26:37 PM can this happen to other currency exchanges too? Yes. Though bear in mind that MtGox's history of failure stretches back more than 2 years.Title: Re: What were the reasons behind the mtgox collapse? Post by: go4nature on February 28, 2014, 04:28:19 PM Yes it will happen to other exchanges also. better save your bitcoin in cold storage. Spread it to multiple exchanges. Never put all your eggs in one basket.
Title: Re: What were the reasons behind the mtgox collapse? Post by: Musent on February 28, 2014, 04:30:46 PM Greed, poor security and horrible management.
Title: Re: What were the reasons behind the mtgox collapse? Post by: Epinnoia on February 28, 2014, 04:35:45 PM He has to fake their disappearance, or he'll be forced to turn them over to the Southern District of New York. Can't be made to confiscate coins you no longer have due to an impossible leak... ;)
Don't forget the 500k coins Mark stole back in 2011 either... Title: Re: What were the reasons behind the mtgox collapse? Post by: DannyHamilton on February 28, 2014, 05:40:48 PM Officially filed for bankruptcy protection in Japan today.
Claiming uninsured theft of 850,000 bitcoins. Title: Re: What were the reasons behind the mtgox collapse? Post by: hensi on February 28, 2014, 06:46:48 PM Officially filed for bankruptcy protection in Japan today. is there something like bankruptcy protection? n who will pay him the bitcoins back? n really has he lost all the bitcoins? even the coins at cold storage?Claiming uninsured theft of 850,000 bitcoins. Title: Re: What were the reasons behind the mtgox collapse? Post by: DannyHamilton on February 28, 2014, 06:54:37 PM is there something like bankruptcy protection? Yes. n who will pay him the bitcoins back? Porbably nobody, but we'll have to wait and see. n really has he lost all the bitcoins? News reports indicate that he is claiming to have lost 850,000 of them. It is not clear from the news reports that I've read how many they still have. even the coins at cold storage? I'm not convinced that MtGox had a true "cold storage" system in place. Whatever they thought they were using for "cold storage" obviously was ineffective at protecting them from significant loss. My best guess is that they were running "fractional reserve" for a long time hoping to earn enough to replace smaller losses from months (or years?) ago, and were not paying attention to how large the reserve was. Given their apparent lack of attention to detail, it wouldn't surprise me if thefts caused that reserve percentage to shrink over time without them realizing how low it was getting. It is not yet clear if we are looking at incompetence, negligence, fraud, or some combination of two or three of those. |