MTGOX has been playing musical chairs for a long long time....

[TheLittleDuke]

It started with permitting unverified generated transactions in that would end up being orphaned.

Combined with a program of keeping the perceived arbitrage gap high assured a fresh flow of valid coins into the pool (acting as their own market maker)

Add in slow AML coupled with wasting time on accounts that had ZERO balances and no history of exchange.

With the inability to verify their own payment tx's

And finally having their private keys stolen (or possibly just used by what they thought was a trusted third party escrow agent)

All of that was simply incompetence (well...acting as your own market maker was probably grey)

The minute they cut off withdrawals but contiued to allow deposits and trade activity it crossed the line into fraud territory.

[bananas]

The minute they cut off withdrawals but contiued to allow deposits and trade activity it crossed the line into fraud territory.

if not before.