Bitcoin Forum

http://yro.slashdot.org/story/14/03/13/1854244/mt-gox-knew-it-was-selling-phantom-bitcoin-2-weeks-before-collapse

"Mt. Gox CEO Mark Karpeles wrote in a sworn declaration in the company's U.S. bankruptcy filing he suspected hundreds of thousands of bitcoins were missing on Feb. 7, more than two weeks before it finally halted trading. That means Mt. Gox allowed its customers to continue trading, knowing that its bitcoin stash was wiped out and collecting as much as US$900,000 in trading fees. Since Mt. Gox said it was also missing $27.3 million in cash from customer deposits, it raises the possibility that customers — despite seeing a cash balance displayed in their account — might have actually been buying bitcoins that did not exist, with cash that was already long gone."

http://www.computerworld.com/s/article/9246921/Mt._Gox_kept_exchange_open_despite_knowledge_of_large_scale_theft

IDG News Service - Mt. Gox may have collected a large sum in trading fees in the weeks before its closure, even though it was already aware that a vast number of bitcoins had gone missing, its U.S. bankruptcy filing suggests.

A sworn declaration in the filing from Robert Marie Mark Karpeles, Mt. Gox 's CEO, reveals that the Bitcoin exchange knew in early February that its situation was far graver than it had disclosed at the time.

Mt. Gox halted bitcoin withdrawals from its exchange on Feb. 7. It told customers it was investigating possible fraud due to a security issue called transaction malleability, but did not specify at the time how many bitcoins were missing. Buying and selling on the exchange continued until Feb. 25, when its website went dark.

Mt. Gox's first disclosure of the scale of its problems came when it filed for bankruptcy protection in Tokyo District Court three days later, saying 750,000 of its customers' bitcoins were missing, along with 100,000 of its own.

It appears from the U.S. bankruptcy filing that Mt. Gox executives knew the gravity of the company's losses up to 19 days before its public disclosure, but gave traders no reason at the time to believe the exchange might not be solvent.

In the filing, Karpeles states that the withdrawals were halted Feb. 7 due to "the theft or disappearance of hundreds of thousands of bitcoins owned by Mt. Gox customers as well as Mt. Gox itself."

Why Mt. Gox continued to operate the exchange with that knowledge is unclear.

Karpeles did not respond to a request for comment for this article sent to his personal email address.

The impact of Mt. Gox allowing customers to buy and sell bitcoins it suspected it did not have may be revealed by class-action lawsuits, one of which was filed in Chicago on Feb. 27, and another of which is planned in the U.K.

"They took trading fees on assets which didn't exist and accepted deposits when they knew they were insolvent," Aaron G., a Bitcoin investor who did not want his last name used, said via email.A

"The origin of the losses may or may not be incompetence," added Aaron, who has filed a fraud complaint against Mt. Gox with Tokyo police. "But they knew for at least two weeks and kept operating as normal."

After Feb. 7, Mt. Gox was still processing thousands of trades a day, according to Bitcoincharts.com, which records trading volumes for many Bitcoin markets.

An average of 49,912 bitcoins were traded daily on Mt. Gox between Feb. 7 and Feb. 25, at an average weighted price of $380.54 per bitcoin.

yep! of course. and thats only the tip of the iceberg. he is a fat dirty liar since years.

Only 2 weeks??

http://www.markkarpelesdeathwatch.com/

There were substantial withdrawals during this time.  The reason he continued to operate was so that "certain individuals" could liquidate and get out.  We have not seen any record of exactly what BTC and USD withdrawals took place after the hack or how much they were for.  Also, Gox was already short USD before the hack even took place.  I have not heard a whisper about any of this so far during the bankruptcy proceedings.  Is anyone showing up to contest this mess???

his bad coding "may" explain the "possibility" that malleability caused "some" losses.

but 740k of coins, no way

and the malleability does not have anything to do with FIAT loses. so i look forward to how he tries to explain his way out of stealing the fiat

The article is borderline lying.  Read the actual bankruptcy filing, and it states that while the theft occurred on the 7th, they didn't discover it until the 24th.

While they may have known sooner, the "anonymous email sources" are not telling the truth about what Mt. Gox stated in their filing.

Full Tilt Poker was crediting player accounts with deposits without taking the money from their bank accounts for about three months before they went down.  Pretty damn similar to whats going on here.

QFT. I can't believe anyone is at all surprised by this, it was just so fucking blatant!

+1 Why do people believe an unnamed source without even checking his/her facts? It must be related to not believing a credible source that differs from their opinion.  Let's just keep our pants on and wait for the trial. You can't just spew crap in a courtroom. Every statement will be checked out and if not true, punishments will be handed down.

Some random person uses bitcoin to hire somebody to assassinate Mark Karpeles.

He made his bed. I'm sure that more than one criminal organization has used bitcoin for money laundering/etc.

Let us take bets on when they make their move against him?

This means fraud and jail time for him. This will make a lot of people happy  :)

That still doesn't account for the withdrawals that occurred after the hack was announced.  Certain people got their money out.

Still a very far cry from what your article suggests.  This isn't exactly a professional who knew what they were doing, and there's a big difference between negligence and fraud.

Domain is under mark personal name not mtgox who filled bankruptcy protection.

I am not sure, but tibanne did not filled bunkruptcy, only mtgox kk has. Surpevisor would know it and mark would be in violation.

That freeze was from us court meant for assets from US and due investigation of fraud. Japan bankruptcy filled only mtgox.

Well i dont know. It seem that tibanne transfered domain ownership prior filling for bankruptcy.
Iam on your side, dont get me wrong, i lost a lot on mtgox. There is a difference between knowing owner of domain and btc, unfortunatelly.

Agan not sure, however court acceptance count not a date when filling were made.
Beside one thing is bankruptcy and other civi rehabitilation what mtgox has.

Edit
It would be usefull for exact link with court docs. And we do not know anything reagrding domain tranfers as we are not creditors of tibanne.

Mtgox creditors (we) does not have anything with tibanne. Domain transfer could be possibly under court supervision. Again, that has nothing with mtgox victims. Can you find doc regarding tibanne fillings? Not news articles please.

Ok, please show me prove of tibanne filled for bankruptcy, the we can continue. I do not see it anywhere.
Tibanne site are operational.

None of this really matters.
Bitcoin attracted MANY criminals.
Either prison or grave, those are his options at this point.
Criminals are not likely to allow his prison stay to be pleasant.

Those he stole from will not be as merciful as the court is likely to be.

I would hated to be in his place, no doubt. He is finish, sooner or after.
We just discussed of domain transfer what i believe tibanne did not filled for bankruptcy so they have every right to do what they wish with their assets.
Let figure that part first as i dont see a point speculating.

cough.... Roger Ver.... cough...

Pretty much the same thing as any divorce case where one spouse looks to secure the money.

Unless he transferred the assets and did not disclose them as Mt. Gox assets, there's not really an issue with what he did.

In the voice of (pick somebody), "You don't know how Bitcoin works!" (not diss, but for humor)

I'll tell you what! I really like Roger Ver, as well as the folks at BitPay, and it would sadden me deeply to later learnt that either entity was involved. I guess I'll add Erik Voorhees to the short list.

Title should be changed to MT. Gox has been Naked Short Selling for 2 weeks

So how come is name is not on https://assmkedzgorodn7o.onion.to/ ?

And if it does get put on there, is it really going to command a larger pool than the others list?