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Author Topic: Most Mt Gox Bitcoins Were Gone by May 2013, Report Claims  (Read 1467 times)
Bizmark13
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April 22, 2015, 04:18:50 AM
 #21

Maybe Mark just didn't want to notice that they were all missing. He could make as much money as possible for as long as possible before anyone caught on.

Some of the early "leaders" in bitcoin have hurt it some. I was at an event yesterday and a Wall Street guy said, "people are afraid...We've got a lot of work to clean up where these early guys screwed up."

Now, if the apparent risk is really illusory, and the string of failures has been caused by incompetence or crooked behavior, then the real risk isn't nearly that bad.  Which, you know, is what we all hope.  And that's why the whole scene needs to be "rehabilitated" with honest and competent businessmen accumulating a much better track record than these early unregulated and largely incompetent-at-business people have done, before the wall street guys can sell investors on it.

My understanding is that one of the great things about Bitcoin was that it was supposed to take power away from the established financial institutions and the people who currently run our fiat system. But if the current breed of Bitcoin entrepreneurs continue to screw up as they have done so many times in the past and the old Wall Street types have to step in and take control, then perhaps that represents a failure of one of Bitcoin's supposed benefits.

There are good, honest, and technically capable people in the Bitcoin world today. People like Mike Hearn and Gavin Andresen have an in-depth understanding of Bitcoin security and probably won't screw their customers due to incompetence in the same way Mt. Gox and BFL did but unfortunately, they're not really businesspeople.

I proposed the idea of an independent Bitcoin auditing service in this thread that would audit Bitcoin-based businesses using a team of accountants from the old fiat world and Bitcoin experts like Hearn and Andresen. It's not perfect, but I believe it would go a long way towards encouraging businesses to become more transparent with their operations and adopt better practices with their customers' funds.
bryant.coleman
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April 22, 2015, 04:47:16 AM
 #22

Mark should have noticed coins are missing when he produced his first balance sheet and annual reports. It is impossible not to notice so much money vanished, unless he is doing the stealing.

That is the whole point. If I am not wrong, the balance sheet and financial reports for Mt Gox were created and verified every 3 months. Also, it seems that in June 2011 (when the biggest robbery happened), the vast majority of the Gox coins were stored in a single Bitcoin wallet. It is impossible not to notice the robbery of BTC425,000 from a single wallet.
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April 22, 2015, 08:22:56 AM
 #23

Mark should have noticed coins are missing when he produced his first balance sheet and annual reports. It is impossible not to notice so much money vanished, unless he is doing the stealing.

That is the whole point. If I am not wrong, the balance sheet and financial reports for Mt Gox were created and verified every 3 months. Also, it seems that in June 2011 (when the biggest robbery happened), the vast majority of the Gox coins were stored in a single Bitcoin wallet. It is impossible not to notice the robbery of BTC425,000 from a single wallet.

The 424,242 BTC transfer by Karpeles happened on June at exactly the same time the biggest theft was suspected to have happened.

I wonder if there is a link between this transfer and the sudden ~425,000 BTC discrepancy. Does anyone know how Mt. Gox stored their coins after 2011? I'm assuming that they split the funds into multiple addresses?

In retrospect, perhaps exchanges should keep their coins in one single large wallet. It would definitely make tracking coins, identifying lost coins, confirming reserves, etc. much more easier.

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April 22, 2015, 11:08:42 AM
 #24

Mark should have noticed coins are missing when he produced his first balance sheet and annual reports. It is impossible not to notice so much money vanished, unless he is doing the stealing.

That is the whole point. If I am not wrong, the balance sheet and financial reports for Mt Gox were created and verified every 3 months. Also, it seems that in June 2011 (when the biggest robbery happened), the vast majority of the Gox coins were stored in a single Bitcoin wallet. It is impossible not to notice the robbery of BTC425,000 from a single wallet.

Well for what it's worth: From what I have heard of the things allegedly going on at Mt. Gox (past tense) I wouldn't be surprised if they didn't realize 425.000 BTC disappearing. Also its was a tad less money than what that amount would be worth today!

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bryant.coleman
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April 22, 2015, 03:57:33 PM
 #25

The 424,242 BTC transfer by Karpeles happened on June at exactly the same time the biggest theft was suspected to have happened.

Do I need to explain this any more? Around BTC425,000 were stolen on June 2011 from Mt Gox. At the same time, according to the Blockchain, Mark Karpeles moved some BTC424,242 to an unspecified Bitcoin address.
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April 24, 2015, 04:50:07 PM
 #26

is still possible to tracking mt.gox stolen bitcoins?
WhatTheGox
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April 24, 2015, 04:52:21 PM
 #27

is still possible to tracking mt.gox stolen bitcoins?

Not if the people with the information dont release the information, according to them finding the missing coins isn't very possible at this stage.
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April 24, 2015, 05:46:49 PM
 #28

is still possible to tracking mt.gox stolen bitcoins?

Not if the people with the information dont release the information, according to them finding the missing coins isn't very possible at this stage.

We would need access to all the transaction logs of Mt. Gox, only they know all the addresses of their wallets, and without those we can never be sure when coins went "left Gox" or "entered Gox". Such a list alone would be of phenomenal use for investigating this issue!

I should have gotten into Bitcoin back in 1992...
monsterdoge
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April 24, 2015, 06:37:26 PM
 #29

is still possible to tracking mt.gox stolen bitcoins?

Not if the people with the information dont release the information, according to them finding the missing coins isn't very possible at this stage.

so people didnt release their information? and the case unpunished?
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