Bitcoin Bank Run

[The One]

I used to play online poker professionally.  This is eerily similar to what happened with Full Tilt Poker.  Its been more than 2 1/2 years since they shut down and players have still not received their funds back.

I can only advice you to give up waiting.....

[bitcoinminer]

Maybe they "fully tilted" the table on its side, and let all of your chips slide into their pockets

[The One]

Mt. Gox is operating under a system of fractional reserves

Where did that come from? They don't do loans, and have no reason to do fractional reserve. Is there a source for this claim?

The whole sentence, "Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it."

When in doubt, ask them

[Rassah]

When someone is less trustworthy than a bank, I don't think it's out of bounds to assume the worst, especially when said individual has had this service shut down what, 10 or 20 times in a year or two?

You'd think about 10 or 20 times people would assume this is just their normal operating procedure 

[bitcoinminer]

When someone is less trustworthy than a bank, I don't think it's out of bounds to assume the worst, especially when said individual has had this service shut down what, 10 or 20 times in a year or two?

You'd think about 10 or 20 times people would assume this is just their normal operating procedure 

When I see people complain about it, I want to shake them upside down in real life, and take all the money that falls out of their pockets away and send it to Mt. GoXXX.  Just to save them the effort.

[5thStreetResearch]

I used to play online poker professionally.  This is eerily similar to what happened with Full Tilt Poker.  Its been more than 2 1/2 years since they shut down and players have still not received their funds back.

I can only advice you to give up waiting.....

lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month

[The One]

I used to play online poker professionally.  This is eerily similar to what happened with Full Tilt Poker.  Its been more than 2 1/2 years since they shut down and players have still not received their funds back.

I can only advice you to give up waiting.....

lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month

Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle'

[bitcoinminer]

I used to play online poker professionally.  This is eerily similar to what happened with Full Tilt Poker.  Its been more than 2 1/2 years since they shut down and players have still not received their funds back.

I can only advice you to give up waiting.....

lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month

Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle'

GOXXX is like that boyfriend that beats you that you just keep going back to.  I can change baby I can change! Nobody loves you like I do!

IF I CANT HAVE YOU NO ONE CAN!

[Rassah]

Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle'

Well, they got hacked and had money stolen in 2011. They reimbursed customers from their own funds/profits.
Bitomat.pl exchange did something massively stupid, and lost something like 25,000 of their customer's coins (all of them, basically). MtGox bought out Bitomat, along with all its customers, and reimbursed customers from their own funds/profits.
Last Spring and Summer, US government took $5mil USD of customer's money when they froze Gox's accounts. They reinbursed customers from their own funds/profits.

There's definitely a trend here, and if they reinburse everyone's funds this time, it wouldn't really be a miracle.

(Talking to someone, they suggested that perhaps MtGox was stupid to reimburse funds the last time, and attempted to file a class action on behalf of the customers who's money US government seized. But then, I guess that would have been too much hassle)

[NorbyTheGeek]

Comments are disabled on the original article  

The whole article is based on this assumption:

Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it.

Mt. Gox is NOT a bank.  There is no evidence that it is engaging in lending.  I would even go so far as to speculate that to do so would be highly illegal.

I just love it when "experts" pull "facts" out of their arse.

[jbreher]

Comments are disabled on the original article  

The whole article is based on this assumption:

Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it.

I just love it when "experts" pull "facts" out of their arse.

Agreed. I would be unsurprised to learn that MtGox is involved in fractional reserve asset holding. But that bold statement by the quote in the OP looks to me to be an unsubstantiated allegation. Where's the proof?

[coresutter11]

How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..

[Rassah]

How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..

Where did you hear that?

[bananas]

It is just an exchange, why would it need to operate on fractional reserves? if they are operating in such way for whatever reason, it is a crime. It is simple stealing.

[CryptoPanda]

The only thing that bothers me is why they think that mtgox is fractional reserve. Is it?

Now It's not hard to imagine that after they had over 5M seized by US they might have sold some bitcoins to keep their cash flow, and when later the price increased tenfold they couldn't re-buy them anymore.....
Also I think that was one of the reasons that their price was $100 above all other exchanges, they were selling at a premium (somehow artificially manipulated the exchange to sell their own bitcoins at a premium) to slowly compensate the loses.

At least that's my little conspiracy theory

[BitCoinsLOL]

I used to play online poker professionally.  This is eerily similar to what happened with Full Tilt Poker.  Its been more than 2 1/2 years since they shut down and players have still not received their funds back.

FT funds were seized by the DOJ along with PS and UB because the money processors from each site were colluding to launder money so they could except US deposits.

[Rassah]

Also I think that was one of the reasons that their price was $100 above all other exchanges, they were selling at a premium (somehow artificially manipulated the exchange to sell their own bitcoins at a premium) to slowly compensate the loses.

At least that's my little conspiracy theory

Aww, don't leave us hanging! Explain how someone would manipulate prices like that!

[roslinpl]

How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..

Where did you hear that?

Yep. Seems like not realy truth..