MtGox wires ARE delayed

[Roy Badami]

WTF ! If the US decides to go after Bitcoin in a big and more overt way then they could disrupt transactions which go nowhere near a US bank.

Whatever makes you think that a US Dollar transfer would go nowhere near a US bank?  For a brief description of how international wire transfers work, see this post on the Bitcoin Foundation's blog:

https://bitcoinfoundation.org/blog/?p=63

It's a fiat currency after all, so it only exists because because the US says it does.  And only US banks (or US branches of foreign banks) have access to the Federal Reserve system.  This isn't unique to the US and the US Dollar, BTW - it's just how fiat currency works.

roy

[MPOE-PR]

So i'm not sure how the previous poster was able to get any information from them

It's called forum posting, a subset of fiction writing.

[samson]

WTF ! If the US decides to go after Bitcoin in a big and more overt way then they could disrupt transactions which go nowhere near a US bank.

Whatever makes you think that a US Dollar transfer would go nowhere near a US bank?  For a brief description of how international wire transfers work, see this post on the Bitcoin Foundation's blog:

https://bitcoinfoundation.org/blog/?p=63

It's a fiat currency after all, so it only exists because because the US says it does.  And only US banks (or US branches of foreign banks) have access to the Federal Reserve system.  This isn't unique to the US and the US Dollar, BTW - it's just how fiat currency works.

roy

Interesting read. So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

I guess one way to get around any interference would be to have the sending bank convert the USD into a different currency in house before sending the wire.

For example a Japanese company that deals with a lot of foreign transfers could convert a USD payment into Yen and then wire the Yen to the recipient where it would be converted by the receiving bank into the accounts native currency. This would probably cost a bit more though.

[MPOE-PR]

WTF ! If the US decides to go after Bitcoin in a big and more overt way then they could disrupt transactions which go nowhere near a US bank.

Whatever makes you think that a US Dollar transfer would go nowhere near a US bank?  For a brief description of how international wire transfers work, see this post on the Bitcoin Foundation's blog:

https://bitcoinfoundation.org/blog/?p=63

It's a fiat currency after all, so it only exists because because the US says it does.  And only US banks (or US branches of foreign banks) have access to the Federal Reserve system.  This isn't unique to the US and the US Dollar, BTW - it's just how fiat currency works.

roy

Interesting read. So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

I guess one way to get around any interference would be to have the sending bank convert the USD into a different currency in house before sending the wire.

For example a Japanese company that deals with a lot of foreign transfers could convert a USD payment into Yen and then wire the Yen to the recipient where it would be converted by the receiving bank into the accounts native currency. This would probably cost a bit more though.

As I said earlier, USD does not really exist out of the US, meaning here that your bank owns a bank account with another bank in America to deal with USD, and the same is true for the merchant's bank that you are sending money to.

The linked article is uniquely ignorant. There is such a thing as Eurodollars, which is a topic ignoramuses such as the people signing "opinions" for the Bitcoin Foundation scam are well advised to read up on.

Yes, people deal in dollars outside the reach of the US all the damned time. There's even a fucking futures on them, one of the higher volume future contracts traded. How can people be this clueless, seriously?

This is the problem of Bitcoin: nobodies make things with pompous names, such as "the official client" or "the bitcoin foundation" or what have you. These are no different in practice from a 3 inch reproduction of the Eiffel tower in masticated chewing gum.

Then nobodies go around quoting this bullshit as if it were meaningful or relevant. Then shit hits the fan and everyone is like... "oh...because Bitcoin". No. Not because Bitcoin. Because nobodies.

[Phinnaeus Gage]

Mtux says Mizuho Bank's automated wire transfer API is broken right now.  Wires can only be sent out manually by Mizuho.  Gox is opening accounts at other banks, which should drastically improve USD withdrawal times and bypass the technical problems at Mizuho.  This process should take around 2 weeks.

Way does this remind me of FullTilt (poker site) prior to its demise here in the US? I beat that dead horse for about two years before abandoning my efforts to get my money back.

Luckily for me, in about a week I'll once again gain control of the huge chuck of change that InstaWallet has been so kind to oversee for the past three months.

The writing's on the wall
In this here bathroom stall
It's very clear to see
That Mt Gox will cease to be

[Roy Badami]

The linked article is uniquely ignorant. There is such a thing as Eurodollars, which is a topic ignoramuses such as the people signing "opinions" for the Bitcoin Foundation scam are well advised to read up on.

Yes, but I think Eurodollar deposits are generally largely backed by the deposit taker in turn holding dollars at a US bank, no?  (Of course, in many cases the US bank will actually be the US branch of the same bank.)

Foreign banks don't have direct access to the Federal Reserve System, and hiding wads of dollar bills under the mattress in a bank vault is so 19th century. 

In any case, from what I've read international wire transfers are normally settled via correspondent banks in the country which issues the currency.  I'm sure there are exceptions, but you should generally assume that a USD transfer will go via one or two US banks unless you have information to the contrary.

[Roy Badami]

I guess one way to get around any interference would be to have the sending bank convert the USD into a different currency in house before sending the wire.

For example a Japanese company that deals with a lot of foreign transfers could convert a USD payment into Yen and then wire the Yen to the recipient where it would be converted by the receiving bank into the accounts native currency. This would probably cost a bit more though.

So, to take the case of a Mt Gox withdrawal (or deposit), if you withdraw or deposit in either your own country's currency, or in Japanese Yen, then although the transfer might still go through an intermediate bank, if it does then that bank will probably be either in your own country or in Japan.

If you do the transfer in a third country's currency (such as someone in a country other than the US or Japan doing a transfer to/from Gox in USD) then the transfer will probably go via one of more banks in the third country.

One might argue that involves an increase in jurisdictional risk (the transfer is now subject to three jurisdictions rather than two).  Whether in reality it increases the risk of the transfer is less clear.

roy

[MPOE-PR]

Yes, but I think Eurodollar deposits are generally largely backed by the deposit taker in turn holding dollars at a US bank, no?

No.

[TimJBenham]

So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

And they have. In 2012 the US seized a USD wire from Denmark to Germany. It hs been reported that the US government has access to data on all international wires. See also http://www.coindesk.com/team-americas-dwolla-bashing-is-just-the-start/

[ArticMine]

So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

And they have. In 2012 the US seized a USD wire from Denmark to Germany. It hs been reported that the US government has access to data on all international wires. See also http://www.coindesk.com/team-americas-dwolla-bashing-is-just-the-start/

Let me guess. The USD wire from Denmark to Germany used a correspondent bank in the United States. So in reality the funds went from Denmark to the United States to Germany. I doubt very much the payment could have been seized if it had been made in Euros.

Routing a payment for Cuban cigars through the United States is just very dumb, and yes it did violate US law.

[MPOE-PR]

So this goes to show that the US could interfere with many more USD transactions around the world if they wanted to.

And they have. In 2012 the US seized a USD wire from Denmark to Germany. It hs been reported that the US government has access to data on all international wires. See also http://www.coindesk.com/team-americas-dwolla-bashing-is-just-the-start/

Let me guess. The USD wire from Denmark to Germany used a correspondent bank in the United States. So in reality the funds went from Denmark to the United States to Germany. I doubt very much the payment could have been seized if it had been made in Euros.

Routing a payment for Cuban cigars through the United States is just very dumb, and yes it did violate US law.

Coindesk is a source now. Because they got twenty people in a pub in London together, which is the pinnacle of accomplishment, and because they're too fucking clueless to know that wasn't the first time twenty people got together in a pub in London. This is their claim to fame, and they get quoted now.

Wake up already, Bitcoin retardom.

[Nagle]

Code:

[23:08] <MagicalTux> we broke their system due to the volume
[23:08] <ineededausername> the bank's system?
[23:08] <ineededausername> what do you mean broke?
[23:08] <MagicalTux> yep
[23:08] <MagicalTux> it's broken
[23:08] <ineededausername> a technical problem?
[23:08] <MagicalTux> yep
[23:09] <MagicalTux> they're working on fixing this, and we're opening new bank accounts in other banks as I speak to resume transfers (it takes 2 weeks)

Mt. Gox claims they overloaded Mizuho Bank, the second largest bank in Japan, with 515 branches, 26 million customers, and revenue over one trillion yen. Yeah, right. 

[Rampion]

Code:

[23:08] <MagicalTux> we broke their system due to the volume
[23:08] <ineededausername> the bank's system?
[23:08] <ineededausername> what do you mean broke?
[23:08] <MagicalTux> yep
[23:08] <MagicalTux> it's broken
[23:08] <ineededausername> a technical problem?
[23:08] <MagicalTux> yep
[23:09] <MagicalTux> they're working on fixing this, and we're opening new bank accounts in other banks as I speak to resume transfers (it takes 2 weeks)

Mt. Gox claims they overloaded Mizuho Bank, the second largest bank in Japan, with 515 branches, 26 million customers, and revenue over one trillion yen. Yeah, right. 

Nagle, is Bitcoin a Ponzi?

Should we get out now?

[arbitrage001]

Is it limited to wire to Citibank?

It has been 3 weeks since I requested the wires. I even have the wire confirmation from the Japanese Bank (Mizuho Bank, LTD)

On the Wire confirmation document, it shown Bank of America, New York as the intermediate bank. And Citibank support told me they never received the wire.

Is Bank of America in trouble? or is it blocking the wire for some reason?

I heard some rumor there is going to be another major bank on the verge of blowing up and there will be no bail out this time. Is this related to what is happening right now?

[joesmoe2012]

Is it limited to wire to Citibank?

It has been 3 weeks since I requested the wires. I even have the wire confirmation from the Japanese Bank (Mizuho Bank, LTD)

On the Wire confirmation document, it shown Bank of America, New York as the intermediate bank. And Citibank support told me they never received the wire.

Is Bank of America in trouble? or is it blocking the wire for some reason?

I heard some rumor there is going to be another major bank on the verge of blowing up and there will be no bail out this time. Is this related to what is happening right now?

Did u call the Japanese bank to confirm it went out? Or how did you get this info?

I have heard elsewhere tat citi is intermediary for chase and bofa for wires from the Japanese bank, and that's where the problem lies.

[joesmoe2012]

http://www.reddit.com/r/Bitcoin/comments/1h0fmb/citibank_will_no_longer_process_any_transfers_to/

[samson]

http://www.reddit.com/r/Bitcoin/comments/1h0fmb/citibank_will_no_longer_process_any_transfers_to/

This sounds like the start of a banking blockade based on bullshit to me.

[Rampion]

http://www.reddit.com/r/Bitcoin/comments/1h0fmb/citibank_will_no_longer_process_any_transfers_to/

This sounds like the start of a banking blockade based on bullshit to me.

Cool, fools that wish to be "legit" and "regulated" will now see with their own eyes why Bitcoin was created.

This experiment is now approaching "phase 2". The outcome will fundamental to its short term survival and its long term success.

[arbitrage001]

Did u call the Japanese bank to confirm it went out? Or how did you get this info?

I have heard elsewhere tat citi is intermediary for chase and bofa for wires from the Japanese bank, and that's where the problem lies.

You can get the confirmation wire from Mtgox support. I contacted the wrong branch of Mizuho bank and they told me they don't do individual wire and told me to contact whoever that initiate the process (in this case, Mtgox).

[joesmoe2012]

Give citi a call by chance?