MtGOX WTF is going on?

[lunarboy]

stop spreading FUD plz. Thanks

mt.gox is fine.

This is not FUD. this is genuine concern. 20 Days is too long to wait for a deposit.

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[Seth Otterstad]

Although bitstamp passed them in volume for a couple days last week, I don't understand how they are still averaging higher volume.  Do people just not know how terrible they are?  6-8 weeks to withdraw, and 20 days to deposit?  WTF?

[OhShei8e]

Although bitstamp passed them in volume for a couple days last week, I don't understand how they are still averaging higher volume.  Do people just not know how terrible they are?  6-8 weeks to withdraw, and 20 days to deposit?  WTF?

- Poor trading engine and API
- safety deficiencies
- very low market depth

The money is already on Gox. Approximately over $ 20 million. This can not be easily changed. Do you get it?

The only thing you could deduct from Gox immediately are over 100,000 bitcoins. And then? Where do we sell? At what price? Do you get it?

I'm tired of this discussion.

No one, absolutely no one will deposit $ 30 million and more on any Bitcoin exchange at the moment. If Gox croaked, then we go back to single digits.

In this case I can think of many new Bitcoins with the money I've already earned and which is already on my normal savings account. Let's wait first who will survive the crash and if anyone is still interested in Bitcoin after the biggest exchange with Millions of Dollars have croaked. I don't think so. Where is the money on Bitstamp? I do not see anything! The damn orderbook is empty all the time. Bitstamp is simply the new Dwolla, LR or OKPay for Gox traders. People withdrawal immediately, no real trading. No money is deposited there permanently. An exchange with such a low market depth is ridiculous.

[sublime5447]

Exact same thing happened to me a couple of days ago. I had a guy drive down to buy coins to from me and when he got here I couldnt get my coins off Gox. I was really pissed and confused. I got it worked out, I had a friend give me a short term loan and got my account verified, but it really sucked.

[dexX7]

Exact same thing happened to me a couple of days ago. I had a guy drive down to buy coins to from me and when he got here I couldnt get my coins off Gox. I was really pissed and confused. I got it worked out, I had a friend give me a short term loan and got my account verified, but it really sucked.

Please confirm.

After verification you were able to withdrawal Bitcoin?

[Lohoris]

I think that happened sometime ago, you need to submit your verification and have it approved before you can do anything at Mtgox nowadays.

With the exception of depositing, that is.

There's not a bank in world that I can walk into and open an account without providing ID, yet Mt Gox can take your Bitcoin deposit without knowing exactly who you are, but when it comes time to withdraw your own funds, you have to jump through rings like a trained dog.

this.

It is utterly foolish and should be illegal IMAO.

It's just a delay tactic, part of their ponzi...

+1

not exactly a ponzi, but they likely are operating as a fractional reserve, and a bank run will destroy them.

[sublime5447]

Exact same thing happened to me a couple of days ago. I had a guy drive down to buy coins to from me and when he got here I couldnt get my coins off Gox. I was really pissed and confused. I got it worked out, I had a friend give me a short term loan and got my account verified, but it really sucked.

Please confirm.

After verification you were able to withdrawal Bitcoin?

Yes, After I address verified they released my BTC.

[Seth Otterstad]

Although bitstamp passed them in volume for a couple days last week, I don't understand how they are still averaging higher volume.  Do people just not know how terrible they are?  6-8 weeks to withdraw, and 20 days to deposit?  WTF?

- Poor trading engine and API
- safety deficiencies
- very low market depth

The money is already on Gox. Approximately over $ 20 million. This can not be easily changed. Do you get it?

The only thing you could deduct from Gox immediately are over 100,000 bitcoins. And then? Where do we sell? At what price? Do you get it?

I'm tired of this discussion.

No one, absolutely no one will deposit $ 30 million and more on any Bitcoin exchange at the moment. If Gox croaked, then we go back to single digits.

In this case I can think of many new Bitcoins with the money I've already earned and which is already on my normal savings account. Let's wait first who will survive the crash and if anyone is still interested in Bitcoin after the biggest exchange with Millions of Dollars have croaked. I don't think so. Where is the money on Bitstamp? I do not see anything! The damn orderbook is empty all the time. Bitstamp is simply the new Dwolla, LR or OKPay for Gox traders. People withdrawal immediately, no real trading. No money is deposited there permanently. An exchange with such a low market depth is ridiculous.

This makes sense to to me.  So the volume is close on bitstamp because that is where people are going to actually move money in/out of bitcoin, while all the day traders are sitting on gox.  Anyone buying bitcoins would be crazy to wire to mtgox instead of bitstamp.  I had a look at the order books, and bitstamp has about 5000 coins on each side within $10 of the current price.  Mtgox has 20-25k coins on each side.  So that is some 4-5x deeper.  Still, the trend is moving towards bitstamp. 

What safety deficiencies are you talking about?

[casascius]

not exactly a ponzi, but they likely are operating as a fractional reserve, and a bank run will destroy them.

My uninformed guesstimation is that they're broke on fiat but sitting on a large number of early adopter bitcoins and if they could only sell a bunch at the current market price without crashing it, they'd be able to pay out withdrawals.

I don't have any inside information to formulate this guess, it's simply what I gather when they dish BS about fiat withdrawals but have never (to my knowledge) held up bitcoin withdrawals.

[solex]

I was a fan of MtGox until early June when it was obvious they were lying to customers. Now I wouldn't touch them with a barge-pole.

If they have coins in reserve they could trade on their own account to obtain fiat, but I think the problem is not that they have run out of fiat, but that they have been black-listed by the international banking system. The US Govt can scare any bank into stopping a customer from doing USD business. This blacklisting has probably had a knock-on effect on non-USD transfers as banks avoid MtGox generally.

Did they paint the target on themselves that led to this situation? The failed merger and lawsuit was one problem but another was the incredibly foolish G8 magazine advertisement. They should have stayed under the radar as long as possible quietly building their business. Instead they played with fire and are getting torched as a result.

[MPOE-PR]

I just tried to withdraw funds from MtGOX....

"Your account is currently pending review, please visit https://mtgox.com/forms/verification"

This is bit-coins I recently placed into the account. They are now blocking the withdrawals and demanding verification... even to withdraw 2 bit-coins....

These were clean coins from mining.

Karpeles gotta eat. Gotta eat a lot. A LOT.

[melon]

TOKYO - JAPAN - May 30, 2013

Statement Regarding Account Verifications

 The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers. It our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.

 As a result, beginning May 30th, 2013 all Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals.Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.


has this changed sometime in the past 2 months with an official announcement?

[zeroblock]

TOKYO - JAPAN - May 30, 2013

Statement Regarding Account Verifications

 The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers. It our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.

 As a result, beginning May 30th, 2013 all Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals.Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.


has this changed sometime in the past 2 months with an official announcement?

These "verifications" will serve as a mean to delay user BTC transfers when the "bank run" on Gox happens.  Considering that they changed their policy without notification should sound the alarm bells for everyone.  Especially since it has to do with BTC withdraws, which is the last remaining viable exit point of Gox.

[melon]

I have withdrawn BTC to my wallet many times from Gox over the past few months. I have never been verified, I don't withdraw fiat, I just use Gox to make more BTC when the BTC/USD is volatile there.

how many at a time ?a few or a few dozen?
(wonder if there is a limit change in policy) or aml flags or just fud on this thread by others...or trying to hold a Ponzi together

[erk]

I have withdrawn BTC to my wallet many times from Gox over the past few months. I have never been verified, I don't withdraw fiat, I just use Gox to make more BTC when the BTC/USD is volatile there.

how many at a time ?a few or a few dozen?
(wonder if there is a limit change in policy) or aml flags or just fud on this thread by others...or trying to hold a Ponzi together

5 BTC withdrawals since the start of May, never a problem, sometimes slow. Never bothered to get verified.

[BTCBlade]

I have a verified account with Mt Gox

The troll box on btc-e said that mtgox btc transfers are now blocked so i panicked, got my yubikey and proceeded to try and cash out some BTC from mt gox.

I got my BTC to my wallet within literally less than 30 seconds

: )

mt gox still has my trust

[razorfishsl]

"We have detected that you are using TOR, VPN or a public network to use our services without a "verified" account.
ATTENTION: using our services via TOR, VPN or a public network will automatically trigger a Level 1 AML Alert. This is in order for us to make sure that you are the owner of the account you are trying to access."

The only way this could have been triggered is if someone else tries to access your account,
Since I never use any of the above methods.


But that does show a weakness in the system, if someone were to attempt dummy logins from a public network, it would trigger a denial of services attack against users.
They would not be able to withdraw funds until they verified the account....


But it really is a crock of shit.......
Because if it was 'illegal access', someone could still strip the account , by selling at a low price

[Itcher]

damn! How long does Mt. Gox need to accept verification? Is it possible they don't accept the verification?

I want to believe the reason for this is Gox' registration at the FINcen. I hope, they will have success ...

And please stop claiming Gox be a Ponzi. This just creates fog on words. Gox offers a service, Ponzis don't do.

[btc4ever]

Not their fault, they just don't feel like being raided. Should have used localbitcoins or something.

^^^^  this.  The more people that use localbitcoins and start regular buttonwood exchange meetups all around the world, the more fully decentralized we become.  This is the time to be forming those relationships.... with regards to the online exchanges -- it may get a lot worse before it gets any better.

[Grinder]

And please stop claiming Gox be a Ponzi. This just creates fog on words. Gox offers a service, Ponzis don't do.

I wouldn't put money on MtGox having turned into a ponzi, but currently they are only *claiming* to offer a service. That's exactly what ponzies do too.