New Mt Gox Press Release - Feb 10 - they are claiming flaw in bitcoin protocol !

[XTR]

Nice response here...

https://bitcoinfoundation.org/blog/

Sounds like he is basically saying Bitcoin is broken and that Gox should have implemented their own way to find out if a transaction is real or not.  I hate to say it but if a flaw like that really does exist how can one say it's not broken. 

Well imagine you pay a plumber $100 dollars with a check and a week later he says he lost the check and wants another one. What would you do??

If your answer is that you would write the plumber another check for $100 without thoroughly checking with the bank first, then you would be like Mt Gox.

They are stupid beyond belief.

That is a good analogy.  So basically Mt. Gox was supposed to but did not implement in their wallet software a way to verify the funds in that transaction.

[DieJohnny]

Nice response here...

https://bitcoinfoundation.org/blog/

Sounds like he is basically saying Bitcoin is broken and that Gox should have implemented their own way to find out if a transaction is real or not.  I hate to say it but if a flaw like that really does exist how can one say it's not broken. 

Well imagine you pay a plumber $100 dollars with a check and a week later he says he lost the check and wants another one. What would you do??

If your answer is that you would write the plumber another check for $100 without thoroughly checking with the bank first, then you would be like Mt Gox.

They are stupid beyond belief.

That is a good analogy.  So basically Mt. Gox was supposed to but did not implement in their wallet software a way to verify the funds in that transaction.

Their wallet actually intends to check whether the withdrawal completes in the blockchain, but they are using a portion of the withdrawal details (txn ID) that is known to be insecure. So their own software was betraying them as they would get a failure notice and assume the payment did not succeed when it actually could have succeeded. The result of this false negative would cascade into other problems essentially backing up the train depot on withdrawals, massive traffic jam....

[superduh]

out of curiosity i wonder how many people maliciously exploited this flaw, to what degree etc.
i'm 100% confident that their accounts are all frozen and depending on the amount their information may be turned over to police for criminal prosecution.
however, there is a chance that some people may have withdrawn a bit too many without their account being frozen at which point a full criminal complaint will be the only way to go.
can't wait to see the unfolding of this. also, hope gox patches this up-

at least now people understand what ACTUALLY HAPPENED! (that's always a good thing)

[seriouscoin]

Nice response here...

https://bitcoinfoundation.org/blog/

Sounds like he is basically saying Bitcoin is broken and that Gox should have implemented their own way to find out if a transaction is real or not.  I hate to say it but if a flaw like that really does exist how can one say it's not broken. 

Well imagine you pay a plumber $100 dollars with a check and a week later he says he lost the check and wants another one. What would you do??

If your answer is that you would write the plumber another check for $100 without thoroughly checking with the bank first, then you would be like Mt Gox.

They are stupid beyond belief.

That is a good analogy.  So basically Mt. Gox was supposed to but did not implement in their wallet software a way to verify the funds in that transaction.

Yes.... they just look for tx id on blockchain and assume thats enough. Well they're fcked. I bet they lost tons of btc due to someone exploit their system .

[dg2010]

I really hope GOX fades into irrelevance as soon as possible. I have no faith in those guys to run a major exchange. We've gone beyond trading cards now.

Short term pain but I think longer term bitcoin will be stronger without MtGox.

[zyk]

its not only gox------ all exchanges don´t have no more the real BTC´s....alll raided the same way....the digits there are just that- digits- not to be withdrawn anymore.....

Cheers

[td services]

There is never any legitimate excuse for any financial services company to not immediately return a customer's money upon request. Mtgox has delayed customer withdrawals for almost a year now. This means Mtgox is insolvent. Do NOT keep any more money there than you are willing to lose.

wow.. hang on.. you must not have a bank

daily limits, AML query's and that such. look at Cyprus and other noteworthy government led bank blockages

although i morally agree that no financial service of any kind should block peoples funds... it does happen.

and i totally agree that there is no viable reason to block a bitcoin transaction, bitcoins are stored on private keys.. so blaming a protocol is simply blaming software, which can be altered/replaced

This is precisely the reason why I advise people not to keep any more money in banks than they are willing to lose. The global monetary and banking systems are also insolvent at the most fundamental level.

[quone17]

its not only gox------ all exchanges don´t have no more the real BTC´s....alll raided the same way....the digits there are just that- digits- not to be withdrawn anymore.....

Cheers

Yeah, you know this for a fact.

[URSAY]

This is hardly new.

[blueberry]

MtGox caused havoc in the markets today with their dramatically worded and damaging announcement. They diverted blame from themselves and placed the full blame on the Bitcoin protocol and making a minor technical issue (that already existed for years) seem like a critical widespread panic issue by the way the announcement was started and worded throughout. Most traders are non-technical users and their first reaction would be to panic after reading such a statement. Up to 15,000 bitcoins were dumped down to 102 at Btc-e on this news resulting in millions of dollars lost. Bitfinex also had thousands of BTC dumped down to 100, mainly margin liquidations. I would be surprised if the MtGox CEO did not know beforehand the effects and impact and knock on effects that such an announcement would have on traders and on the markets in all exchanges. It is amazing and scary how one person could have had such an influence in the marketplace.

Mark and/or his friends could have easily sold bitcoins on the other exchanges such as Btc-e or Bitfinex and placed low buyback orders before making the announcement. They could have set up accounts with fake details, Tor etc. Hundreds, maybe thousands of bitcoins could have been bought back for cheap netting them potentially in excess of $1m+ gain on the traders panic.

It is no longer simply a case of being Goxed again and joke about it like in 2011 or 2012. We are now dealing with very serious amounts of money, millions of dollars worth of bitcoins were made and lost on this single announcement across all exchanges not only MtGox.

I am not even a customer of MtGox (I left them a year ago), yet I have been adversely affected (as have thousands of other non-Gox exchange users) by their negligence and adverse affect their announcement has had on the other exchanges namely Bitfinex and Btc-e. The other exchanges are operating fine and do not have the same technical issues that Gox is facing. Yet, MtGox goes and ahead and basically says that the issue affects everyone else:

In the meantime, exchanges and wallet services - and any service sending coins directly to third parties - should be extremely careful with anyone claiming their transaction did not go through.

I cannot believe after all that has happened with MtGox, that they would have the cheek to tell other exchanges what to do regarding this non issue that only affects MtGox

Anyone defending MtGox without acknowledging the extraordinarily negative impact their announcement has had to the entire bitcoin trading community either work for MtGox or have their head in the sand. Defending MtGox after years of endless f***ups and BS excuses is completely inexcusable at this stage.

The MtGox CEO should be investigated for negligence and for potential insider trading fraud.

its not only gox------ all exchanges don´t have no more the real BTC´s....alll raided the same way....the digits there are just that- digits- not to be withdrawn anymore.....

Cheers

Bulls***

[g0re79]

MtGox goxxxed itself this time. Instead of saying

"We fucked up badly with our trading system because we ignored long time known and well documented minor issue. We have lost XXX coins and have to completely rewrite our trading platform. It´ll take XXX days/weeks and during this time trading will be disabled and withdrawals suspended. We deeply apologize for any inconvenience."

They actually said something like

"Nothing is our fault - we are victims of huge flaw in Bitcoin code and everyone in cryptoworld will be exploited same way. We will donothing until someone else fix it. If You don´t like it, go fuck yourself!"

With first statement, there could be a chance to ressurect, but they are doomed for what they said.

[roslinpl]

Yeah well...

this is easy to understand policy...

"This is not our fault -> it is his fault"

You know it is hard to say truth -> "We fucked up ... we are idiots and we did not done it well for the first time, and then  after some period of time our shit comes out"

It is always easier to say it is not my fault.

We all know it

"Who broke the window?"
"He did!"


I never finished my account verify at MtGox so I never yse their exchange. And what I know is that I am lucky.

Good luck to Gox! Let them build up stronger! Realy! Because they did a lot for Bitcoin world.
Most of you were  seling buing cryptos over there, you propably spent many nights @mtgox so it is some kind of legend I supose.

[Sancho]

There is never any legitimate excuse for any financial services company to not immediately return a customer's money upon request. Mtgox has delayed customer withdrawals for almost a year now. This means Mtgox is insolvent. Do NOT keep any more money there than you are willing to lose.

wow.. hang on.. you must not have a bank

daily limits, AML query's and that such. look at Cyprus and other noteworthy government led bank blockages

although i morally agree that no financial service of any kind should block peoples funds... it does happen.

and i totally agree that there is no viable reason to block a bitcoin transaction, bitcoins are stored on private keys.. so blaming a protocol is simply blaming software, which can be altered/replaced

This is precisely the reason why I advise people not to keep any more money in banks than they are willing to lose. The global monetary and banking systems are also insolvent at the most fundamental level.

DING DING DING DING DING DING!!!!

[darkmule]

"Who broke the window?"
"He did!"

"But I saw you throw a baseball through it after you were told not to, that it could break if you did that!"
"It is glass that is designed defectively!  I refuse to stop throwing baseballs until you fix glass!"

[G K G]

Mt.GOX this is my message to you

[johnyj]

Trivial, period.

However, it triggered the stop loss of a big speculator on btc-e 

[justusranvier]

Not entirely. A shitload went for prices ranging from $600 to $102. ALL open buy orders in that range were filled, only the few at the very bottom went for $102.

Dang, that really makes me wish I'd had a standing buy order setup for some ridiculously low price.

But then  you would have to use Gox and you wouldnt get your money or bitcoins back

The flash crash was on btc-e.

[medUSA]

I personally consider the Gox show is over 

BitStamp and BTC-e are both trading around $700 and Gox has hovering around $600.
I am so glad the market has decoupled from Gox.

I just hope the less informed bitcoin holders will read up on the transaction malleability issue
and realise Gox is just shifting blame blame with a feeble excuse.

Once Gox re-enable withdrawals, it will just be an empty shell.
R.I.P Gox

[raskul]

I personally consider the Gox show is over 

BitStamp and BTC-e are both trading around $700 and Gox has hovering around $600.
I am so glad the market has decoupled from Gox.

I just hope the less informed bitcoin holders will read up on the transaction malleability issue
and realise Gox is just shifting blame blame with a feeble excuse.

Once Gox re-enable withdrawals, it will just be an empty shell.
R.I.P Gox

considering that yesterday's price slump is already rectifying itself, i'd say the market has already turned it's back on gox, having realised what utter crap of information they have been feeding us.

goodnight gox, it was nice knowing you.

[Mikellev]

Once Gox re-enable withdrawals, it will just be an empty shell.

And if not ? What if they rly say sorry, we just did the lehmann broth. move.
How will this affect the market ?
How many btc are gone then ? 50k ?