[2015-04-20] uk.reuters: MtGox insolvent long before collapse

[pawel7777]

MtGox insolvent long before collapse - FT.com

http://uk.reuters.com/article/2015/04/20/uk-bitcoin-trading-mtgox-idUKKBN0NB01120150420

(Reuters) - MtGox, a bitcoin trading platform that collapsed early last year, was insolvent long before it went bankrupt because thieves practically cleaned it out, the Financial Times reported Sunday, citing a report by independent investigators.

Findings by WizSec, an independent consulting firm, showed that bitcoins were periodically being stolen from the Tokyo-based exchange two years before its collapse, the newspaper reported online.
...

[Lauda]

Well this story just keep going back to the original assumption that I've had. This was an inside job and it was ignored until enough time has passed to blame it on the bug.
One does simply not not notice hundreds of millions disappearing. I just wonder how and why Karpeles is still a free man?
Such scammers need to be prosecuted and their punishments need to be harsh.

[Bit_Happy]

MtGox insolvent long before collapse - FT.com

http://uk.reuters.com/article/2015/04/20/uk-bitcoin-trading-mtgox-idUKKBN0NB01120150420

(Reuters) - MtGox, a bitcoin trading platform that collapsed early last year, was insolvent long before it went bankrupt because thieves practically cleaned it out, the Financial Times reported Sunday, citing a report by independent investigators.

Findings by WizSec, an independent consulting firm, showed that bitcoins were periodically being stolen from the Tokyo-based exchange two years before its collapse, the newspaper reported online.
...

"This kind of activity would be hard to interpret as anything but intentional theft," wrote Kim Nilsson, the report's author, and WizSec's chief engineer.
^^^
I liked the extra volatility on Gox and also had great memories of wild trading in 2011. Being a long-time "fan" of the site I was blind to the reality for too long. Fortunately, my funds were out of there before the real collapse.

Why isn't Mark in jail?

[bryant.coleman]

Why isn't Mark in jail?

Because he was a bankers' agent, who was supported by the CIA and the FBI. His ultimate aim was the complete destruction of Bitcoin, and he almost achieved it. He ruined the lives of at least 50% of the Bitcoiners at that time (2013).

[Lauda]

Because he was a bankers' agent, who was supported by the CIA and the FBI. His ultimate aim was the complete destruction of Bitcoin, and he almost achieved it. He ruined the lives of at least 50% of the Bitcoiners at that time (2013).

If this is true then where did the stolen money go? To Mark's pocket? To the government?
I still think he was stolen from, he just didn't notice or didn't want to admit it out of shame and fear.

Well as far as I know the money was split into many addresses. I think each has around 1000 Bitcoins. They aren't moving for now.
They might move in the future 1 by 1 so that it doesn't attract too much attention.

[Carlton Banks]

Why isn't Mark in jail?

Because he was a bankers' agent, who was supported by the CIA and the FBI.

Something like this is highly probable. But there has been zero evidence.

His ultimate aim was the complete destruction of Bitcoin, and he almost achieved it. He ruined the lives of at least 50% of the Bitcoiners at that time (2013).

That's a set of thoroughly bizarre claims. And again, zero evidence.

[bryant.coleman]

His ultimate aim was the complete destruction of Bitcoin, and he almost achieved it. He ruined the lives of at least 50% of the Bitcoiners at that time (2013).

That's a set of thoroughly bizarre claims. And again, zero evidence.

I agree that as of now, there is zero evidence for this. But I hope sometime in the near future, his real intentions will be revealed.

And the claims are not bizarre. Just check the possible reasons why he should hide the theft of coins, and allow that to continue for months. Also, think why he rigged the Mt Gox orderbook, so that the BTC price went up to $1,200.

[Carlton Banks]

His ultimate aim was the complete destruction of Bitcoin, and he almost achieved it. He ruined the lives of at least 50% of the Bitcoiners at that time (2013).

That's a set of thoroughly bizarre claims. And again, zero evidence.

I agree that as of now, there is zero evidence for this. But I hope sometime in the near future, his real intentions will be revealed.

And the claims are not bizarre. Just check the possible reasons why he should hide the theft of coins, and allow that to continue for months. Also, think why he rigged the Mt Gox orderbook, so that the BTC price went up to $1,200.

There's a lot of talk about what happened at Mt Gox, and none of those people provided any evidence for the claims. None. Not one person, not one iota of actual evidence. You're telling me you believe these stories?