Mt.Gox SCAM? $38million disappeared. Large sums affected.

[daserpent1]

Apparently, $38million of clients' money has disappeared from mtgox. Was mtgox hacked? Or did they steal the money to keep themselves afloat?

Source :: http://falkvinge.net/2014/02/04/major-bitcoin-exchange-not-executing-withdrawals-now-owes-clients-38m-in-disappeared-money/

Mtgox support has agreed to this and say this affected only the larger transactions (ofc it did).

Mtgox support reply :: https://support.mtgox.com/entries/26128504-Update-Statement-Regarding-BTC-Withdrawal-Delays

Mtgox better come clean about this soon or the BTC price is gonna keep doing down. Fell $100 in just the past 3 hours.

New Press Release from Mtgox (dated 7th Feb 2014) ::  https://www.mtgox.com/press_release_20140207.html

Mtgox has officially stopped all withdrawals. This is not looking good. So we got all our money stuck at a japanese exchange now  

[knircky]

is this the reason for the drop in price?

Weird?

[keithers]

I said this in another thread, but I have a bad feeling that the people at Gox have been using user's funds for themselves and only processing withdraws when there are sufficient new deposits. It was working before because such huge sums of money kept getting deposited, but its starting to pile up. Seems like it could be exactly what Ultimate Bet was doing with online poker player funds. I could be completely wrong, but something is definitely up. Claiming the site was hacked would be an easy out at first..

[hellscabane]

Apparently, $38million of clients' money has disappeared from mtgox. Was mtgox hacked? Or did they steal the money to keep themselves afloat?

Source :: http://falkvinge.net/2014/02/04/major-bitcoin-exchange-not-executing-withdrawals-now-owes-clients-38m-in-disappeared-money/

Mtgox support has agreed to this and say this affected only the larger transactions (ofc it did).

Mtgox support reply :: https://support.mtgox.com/entries/26128504-Update-Statement-Regarding-BTC-Withdrawal-Delays

Mtgox better come clean about this soon or the BTC price is gonna keep doing down. Fell $100 in just the past 3 hours.

I'll admit, Mt. Gox crashing isn't all that bad. At least there won't be a ridiculous spread between it and the other more liquid options. Besides, Mt. Gox needed to get smacked down in my opinion.

As for the people affected by this bull crap though. I feel bad for that; no one should have their hard-earned money toyed around with like that. I'm sure we've seen this play out last year when USD withdrawals went to a crawl. Either there is a ton of incompetence afloat or a horrendous amount of scheming about. And those are two choices that just plain sucks...

[RandyMagnum]

It seems very likely to me that for some reason Mark K is not able to work on his codebase anymore, and isn't able to resolve bugs in a timely manner, leaving his support staff to try and clean up the mess by making horrible hacks like "throw away and retry later". The question in my mind then becomes - where is Mark and what is he doing?  - Mike Hearn

https://bitcoinfoundation.org/forum/index.php?/topic/700-mtgox-insolvency/

[BittBurger]

I said this in another thread, but I have a bad feeling that the people at Gox have been using user's funds for themselves and only processing withdraws when there are sufficient new deposits. It was working before because such huge sums of money kept getting deposited, but its starting to pile up. Seems like it could be exactly what Ultimate Bet was doing with online poker player funds. I could be completely wrong, but something is definitely up. Claiming the site was hacked would be an easy out at first..

Soon after they had their accounts seized and were seriously short on money, a friend of mine simply lost all his coins out of his online wallet there.  No explanation, no refund, nothing.  Just gone.  About $2,000 worth at the time (25 BTC).

[gollum]

Seems like MtGox is the "Lehman Brothers" of the bitcoin world.
My analysis points out that BTC/USD might crash down to $100

[seriouscoin]

Seems like MtGox is the "Lehman Brothers" of the bitcoin world.
My analysis points out that BTC/USD might crash down to $100

What software is this? care to share?

[gollum]

Seems like MtGox is the "Lehman Brothers" of the bitcoin world.
My analysis points out that BTC/USD might crash down to $100

What software is this? care to share?

Here you are:
https://www.tradingview.com/e/?symbol=MTGOX%3ABTCUSD#

[CompNsci]

This is curious. Just posted a number of withdrawals of various amounts. The first two smaller ones (<=1.0 BTC) went through quickly and immediately appeared on the blockchain.

Subsequent withdrawals, whether larger or smaller, have failed to appear, despite Mt. Gox producing a transaction hash and emailing it to me.

The long term history of their behavior has been honest, but it appears there is something seriously wrong with the their BTC withdrawal code.

Comment #27 on the article at falvinge.net (http://falkvinge.net/2014/02/04/major-bitcoin-exchange-not-executing-withdrawals-now-owes-clients-38m-in-disappeared-money/) seems to point to a race condition in their withdrawal code, creating transactions which attempt to double spend the same outputs. This can apparently be verified on Mt. Gox's api for their transactions.

This would point toward another technical glitch, rather than fraud.

[homerzhu]

is it true?

[bryant.coleman]

BTC vs USD exchange rates are currently on a free-fall..... So something serious is going on...

[Holliday]

How long is MtGox going to be a scab on the face of Bitcoin?

Stop using MtGox people. That was obvious in 2011...

[CryptoVortex]

is this the reason for the drop in price?

Weird?

It does seem to be the reason for the drop in price.  Whether the price should drop is not so clear to me, though.  Previously, when Gox only blocked fiat withdrawals, it was obvious that the USD/BTC price should be higher there than on other exchanges.  The bitcoin there were worth just as much, but a "dollar" on Gox was worth less than a real dollar.  However, if both the denominator and the numerator are going to zero, then what is a fair exchange rate between "Gox dollars" and "Gox bitcoin"?

Personally, if I had not abandoned Gox a year ago after they embezzled from me, I would be buying bitcoin there.  Although neither fiat nor bitcoin withdrawals are working as they should now, it's much still much more likely that you'll be able to get your bitcoin out of there than that they'll pay you in fiat.  If anything, I would think that this news should be causing a spike in the price at Gox.  Expect the volatility to keep rising there if they don't resolve this soon.

If this does turn out to be just a massive technical glitch, then the main effect will be to slightly reduce faith in bitcoin generally and thus drive the price down at all exchanges.  On the other hand, it will certainly drive even more people away from Gox, which can only be good for the bitcoin community in the long run, IMHO.

[gog1]

BTC vs USD exchange rates are currently on a free-fall..... So something serious is going on...

gox had been acting as a hard cap on prices on all other exchanges, I suppose when people realize that it is not possible to withdraw btc from gox, they'll completely ignore their trades.

[daserpent1]

I just tried to withdraw my bitcoins and they haven't even shown up in the blockchain yet  Been more than an hour now.

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw. 

[ymer]

I just tried to withdraw my bitcoins and they haven't even shown up in the blockchain yet  Been more than an hour now.

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw. 

I'm afraid that your coins have already been spent 

[JakeGold]

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw. 

Gox: Teaching people the hard way.

[daserpent1]

I just tried to withdraw my bitcoins and they haven't even shown up in the blockchain yet  Been more than an hour now.

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw. 

I'm afraid that your coins have already been spent 

Well, all i can do is wait and wait and wait i guess

[bbit]

I just tried to withdraw my bitcoins and they haven't even shown up in the blockchain yet   Been more than an hour now.

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw.  

I'm afraid that your coins have already been spent  

Well, all i can do is wait and wait and wait i guess

I've been saying this for months insolvency means taking everyones coins with them......all your coins are mine...

anyone who needs to blow a load because you lost a ton of money check out my sig below