2013-08-22 TheGenesisBlock.com - Additional $2.1M Seized from Mt. Gox Account

[Stephen Gornick]

Additional $2.1M Seized from Mt. Gox Accounts – Now Over $5M Total
By Greg Schvey

 - http://thegenesisblock.com/warrant-for-mt-gox-wells-fargo-accounts-shows-additional-2-1m-seized

[Stephen Gornick]

This is the seizure from Mt. Gox (Mutum Sigillum LLC)'s Wells Fargo account.  Additionally, funds from an account under the name of Mt. Gox's CEO were seized from another account.
In addition to the funds seized

The PDFs in that article require a plugin.  Here are the PDFs:

 - http://www.coinuploads.com/downloads/a799cdbc-8d0d-44ee-8c64-7b8c4e073677/uST4yGHuJkUgeHeThOiScCYO (Affidavit In Support Of Seizure Warrant)
 - http://www.coinuploads.com/downloads/e36a1bca-8a56-4ca8-9ff2-dd2ad2ac6321/tM98fCFtQdLFYFTbhINqNEKA (Seizure Warrant)

(The PDFs available at CoinUploads require bitcoins to read.  Those earn commission but I left the payout address blank which means the payout goes to Bitcoin Foundation.    If someone else has a file hosting with free access PM me with the link after and I'll replace the URLs where I used CoinUploads above.)

[Carlton Banks]

Despite all of these regulatory rumblings, the article cites that US customers are receiving their funds anything up to 7-8 weeks after requesting withdrawals. What's preventing authorities from stopping these transfers?

[Singlebyte]

Because of the seized funds, Mtgox is now essentially running a pyramid business.  New money coming in is used for paying customers waiting to withdraw.

[Peter Lambert]

Because of the seized funds, Mtgox is now essentially running a pyramid business.  New money coming in is used for paying customers waiting to withdraw.

They are not paying interest out of deposits, so I think it is just Fractional Reserve, not a pyramid or ponzi scheme (although you could argue that they overlap).

[Singlebyte]

Because of the seized funds, Mtgox is now essentially running a pyramid business.  New money coming in is used for paying customers waiting to withdraw.

They are not paying interest out of deposits, so I think it is just Fractional Reserve, not a pyramid or ponzi scheme (although you could argue that they overlap).

Good point.  You post is more accurate.

I wonder how "fractional" they are now after having 5 million seized.  Its got to be tough on them having that much money tied up.

[superduh]

Because of the seized funds, Mtgox is now essentially running a pyramid business.  New money coming in is used for paying customers waiting to withdraw.

you do know that mtgox actually makes money with it's trades. it's taken in more money off fees than has been "seized".
it's not like they actually dont make money

edit: sorry about tone seems like you were not trolling -
they made more than the 5million seized this year.
then AGAIN did the US have the right to seize that in the first place..... we will see

[Singlebyte]

Because of the seized funds, Mtgox is now essentially running a pyramid business.  New money coming in is used for paying customers waiting to withdraw.

you do know that mtgox ACTUALLY makes MONEY with it's trades. it's taken in more money off fees than has been "seized".
it's not like they actually DONT MAKE MONEY

Well duh superduh.

We all know they have transaction fees.  But it nowhere totals the amounts of fiat & btc flowing in and out.  The transaction fees only cover their operating costs and profits.  There is no way their profits can cover big seizures.  That is why they are "floating" withdrawls over time.  As money comes in, they allow a small fraction out.  If/when they get their funds back then things will return normal.  If there is another large seizure it will probably sink them.