[2014-02-13] Forbes: Mt Gox CEO Mark Karpeles Responds To Widespread Bitcoin Cri

[vokain]

Who is to blame?

When asked whether the problem was caused by the Bitcoin protocol itself or Mt. Gox’s implementation, Karpeles told Forbes that the Bitcoin client is simply not designed to handle the sort of load that Mt. Gox experiences.

He added that the exchange chose to develop its own implementation to overcome lagging and crashing. However, as the Bitcoin protocol was constantly updated, Mt. Gox simply could not keep up. Karpeles explained:

    “With bitcoin 0.8.0 [...] a breaking change has been included that would prevent transactions to be accepted if their signature did not include the right number of zeroes in front of the signature values (in an effort to reduce risks of transaction malleability). We did not notice this change but a few of the transactions we were sending would become invalid because of this.”

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[Barek]

I guess the most puzzling part is why this issue hasn’t be[en] solved since 2011.

Hard to argue against that.

[Bitcopia]

I guess the most puzzling part is why this issue hasn’t be[en] solved since 2011.

Hard to argue against that.

It's not a serious issue that needs solving, but it could use further consideration which is happening now. However, what's more puzzling is how irresponsible Mt. Gox is in general and why people listen to anything Karpeles has to say. In the interview he states that they were too busy to keep up with changes in the protocol and then blames it on the protocol.

Over time Bitcoin changed and started implementing changes that would require people using previous versions of the software to upgrade. While we followed most of those updates we were more and more busy and couldn’t keep up with all the changes... We did not notice this change.

This is a horribly run company, and I think the community at large would agree. What kind of company is too busy to keep up with changes in its only product!?!? The same company that is too dumb to follow guidance from the U.S. Treasury Department resulting in frozen bank accounts. Bitcoin is just too much for Magic The Gathering Online Xchange.

[Chuck Finley]

Mark Karpeles: First, you need to understand that the Bitcoin implementation we use in MtGox was created back in 2011. The bitcoin client is not meant to handle the kind of load MtGox has and was having more and more troubles, lagging and crashing. We created our own implementation to solve those issues and to offer a better flexibility to our customers.

Over time Bitcoin changed and started implementing changes that would require people using previous versions of the software to upgrade. While we followed most of those update(s) we were more and more busy and couldn’t keep up with all the changes.

With bitcoin 0.8.0 (released 19 feb 2013) a breaking change has been included that would prevent transactions to be accepted if their signature did not include the right number of zeroes in front of the signature values (in an effort to reduce risks of transaction malleability). We did not notice this change but a few of the transactions we were sending would become invalid because of this.

So let me get this straight: you wrote your own software, were well aware that Bitcoin is regularly updated, and even though it is the CORE of your business you didn't bother to keep up with the software? Oh it's because you were "too busy"? I'm sorry, is this a multi-million dollar company or one guy working out of his mother's garage? As your business grows you need to hire more employees to keep up with the workload - it's not like you couldn't afford it.

"We did not notice this change" is a ridiculous thing to come from one of the largest Bitcoin exchanges. You should have someone CONSTANTLY monitoring the community to keep abreast of all changes that could affect your business. You have a fiduciary duty to your clients to properly handle their money and at this Mt. Gox has clearly failed.

Well what are a few more lawsuits thrown on the pile, right?

[hilariousandco]

I guess the most puzzling part is why this issue hasn’t be[en] solved since 2011.

Hard to argue against that.

It's not a serious issue that needs solving, but it could use further consideration which is happening now. However, what's more puzzling is how irresponsible Mt. Gox is in general and why people listen to anything Karpeles has to say. In the interview he states that they were too busy to keep up with changes in the protocol and then blames it on the protocol.

Over time Bitcoin changed and started implementing changes that would require people using previous versions of the software to upgrade. While we followed most of those updates we were more and more busy and couldn’t keep up with all the changes... We did not notice this change.

This is a horribly run company, and I think the community at large would agree. What kind of company is too busy to keep up with changes in its only product!?!? The same company that is too dumb to follow guidance from the U.S. Treasury Department resulting in frozen bank accounts. Bitcoin is just too much for Magic The Gathering Online Xchange.

I agree with everything you said. The way he handled this was appalling. I don't understand how they're even still in business.

[yatsey87]

 How can Bitcoin be unable to handle all the transactions daily, yet it's not good enough for Gox?

[superduh]

get off mark's dick people.

obviously mistakes were made. this technology is still BETA.
his explanation makes sense.
mtgox is being attacked by the press, ddos, angry bitcoiners, and scammers 24/7 - they are doing their "best"
they are the oldest exchange that has not LOST all the bitcoins or run off or closed down.
give them credit

most of the newer exchanges were written more recently that could explain why their code is different.
also, regular reference clients arent' made for "exchanges" or volume users so custom code needs to be regardless.

bitcoiners, need to calm down, be smart and stop blaming GOX for EVERYTHING =)

[hilariousandco]

get off mark's dick people.

I don't think that means what you think it means  .

[Chuck Finley]

get off mark's dick people.

I don't think that means what you think it means  .

ha, I was thinking the same thing.

[superduh]

get off mark's dick people.

I don't think that means what you think it means  .

urban dictionary

[cryptoanarchist]

Wow...I can't believe mtgox is even relevant at all anymore.

I was telling people on this forum to stay away from Gox back in early 2012, and there have been multiple F**k ups since then.

Not to be a dick, but anyone who's been involved with bitcoin since before 2013 and still has money tied up at gox, kinda deserves the shit they're in now. Pain is the best teacher.

[oakpacific]

get off mark's dick people.

obviously mistakes were made. this technology is still BETA.
his explanation makes sense.
mtgox is being attacked by the press, ddos, angry bitcoiners, and scammers 24/7 - they are doing their "best"
they are the oldest exchange that has not LOST all the bitcoins or run off or closed down.
give them credit

most of the newer exchanges were written more recently that could explain why their code is different.
also, regular reference clients arent' made for "exchanges" or volume users so custom code needs to be regardless.

bitcoiners, need to calm down, be smart and stop blaming GOX for EVERYTHING =)

Perhaps he did all the due diligence when he was eager to make money, but started to slack off when he has enough.

[bitbouillion]

Mark Karpeles
@MagicalTux

PHP Developer working on some weird stuff, like a mail server (POP3/IMAP4/SMTP) written in PHP

https://twitter.com/MagicalTux

Looks like Mark was too busy with other stuff.

[LiteCoinGuy]

Mark Karpeles: First, you need to understand that the Bitcoin implementation we use in MtGox was created back in 2011. The bitcoin client is not meant to handle the kind of load MtGox has and was having more and more troubles, lagging and crashing. We created our own implementation to solve those issues and to offer a better flexibility to our customers.

Over time Bitcoin changed and started implementing changes that would require people using previous versions of the software to upgrade. While we followed most of those update(s) we were more and more busy and couldn’t keep up with all the changes.

With bitcoin 0.8.0 (released 19 feb 2013) a breaking change has been included that would prevent transactions to be accepted if their signature did not include the right number of zeroes in front of the signature values (in an effort to reduce risks of transaction malleability). We did not notice this change but a few of the transactions we were sending would become invalid because of this.

So let me get this straight: you wrote your own software, were well aware that Bitcoin is regularly updated, and even though it is the CORE of your business you didn't bother to keep up with the software? Oh it's because you were "too busy"? I'm sorry, is this a multi-million dollar company or one guy working out of his mother's garage? As your business grows you need to hire more employees to keep up with the workload - it's not like you couldn't afford it.

maybe he is eating pizza all the day and cant move his body anymore 

[zeetubes]

Please pardon my english but he's a fucking slimy, disingenuous, incompetent, self-important, lying, useless cunt. Did I leave anything out?

[vokain]

Please pardon my english but he's a fucking slimy, disingenuous, incompetent, self-important, lying, useless cunt. Did I leave anything out?

let us not forget Karpeles bailed out the third largest exchange that went down, 17000 BTC, out of his own purse just three years back

[yatsey87]

Please pardon my english but he's a fucking slimy, disingenuous, incompetent, self-important, lying, useless cunt. Did I leave anything out?

let us not forget Karpeles bailed out the third largest exchange that went down, 17000 BTC, out of his own purse just three years back

What one was that? And did he get his money back?

[vokain]

Please pardon my english but he's a fucking slimy, disingenuous, incompetent, self-important, lying, useless cunt. Did I leave anything out?

let us not forget Karpeles bailed out the third largest exchange that went down, 17000 BTC, out of his own purse just three years back

What one was that? And did he get his money back?

http://siliconangle.com/blog/2011/08/01/third-largest-bitcoin-exchange-bitomat-lost-their-wallet-over-17000-bitcoins-missing/
and no, "out of his own purse"

[yatsey87]

Please pardon my english but he's a fucking slimy, disingenuous, incompetent, self-important, lying, useless cunt. Did I leave anything out?

let us not forget Karpeles bailed out the third largest exchange that went down, 17000 BTC, out of his own purse just three years back

What one was that? And did he get his money back?

http://siliconangle.com/blog/2011/08/01/third-largest-bitcoin-exchange-bitomat-lost-their-wallet-over-17000-bitcoins-missing/
and no, "out of his own purse"

That doesn't mean he didn't get his money back.

[zeetubes]

So three years ago he donated 17000btc, which would have been how much in say USD? $30? $5K? $10K? Two pizzas? 14 years ago I gave a good friend 600,000 Hilton points for a two week honeymoon to the maldives (around $900 per night) because her scientist fiance didn't make much money (all research funds were being diverted away from gene research into global warming). I don't know how much fiat that converts into but probably way more than 17000btc three years back. Regardless, this fucking worthless prick decided last monday to crater the bitcoin market without warning to anyone, and without discussion with any of the other exchanges, which he claimed he was helping. The last time he fucked over bitcoins was due to sheer incompetence, which I fully understand and I forgave him for. This instead was deliberate malice trying to cover up his complete inability to run any company. He makes jamie dimon look like an angel. He should be ostracized from the bitcoin community, but only once he has made good on his debts to the people who have their money in there. Luckily I am not one of them but a few friends are.

Fundamentally he is still, and no doubt always will be, a corrupt, incompetent cunt.

[superduh]

So three years ago he donated 17000btc, which would have been how much in say USD? $30? $5K? $10K? Two pizzas? 14 years ago I gave a good friend 600,000 Hilton points for a two week honeymoon to the maldives (around $900 per night) because her scientist fiance didn't make much money (all research funds were being diverted away from gene research into global warming). I don't know how much fiat that converts into but probably way more than 17000btc three years back. Regardless, this fucking worthless prick decided last monday to crater the bitcoin market without warning to anyone, and without discussion with any of the other exchanges, which he claimed he was helping. The last time he fucked over bitcoins was due to sheer incompetence, which I fully understand and I forgave him for. This instead was deliberate malice trying to cover up his complete inability to run any company. He makes jamie dimon look like an angel. He should be ostracized from the bitcoin community, but only once he has made good on his debts to the people who have their money in there. Luckily I am not one of them but a few friends are.

Fundamentally he is still, and no doubt always will be, a corrupt, incompetent cunt.

jeezus!! you are all about writing a bunch of shit but don't even bother to at least spend 30 seconds doing some reserach
 "The Bitomat service is now up for sale for 17,000 Bitcoins to help recover the cost of the missing coins and return them to their owners. At a current conservative market estimate of near $13 per BTC that would put the sale price of the exchange as exceeding $221k."

so yes. it's exactly like your 600,000 hilton points. exactly the same thing

this is what's wrong with this community. they don't bother to think more than with their emotions

edit: when mtgox was hacked he paid out of mtgox's profits so noone lost their bitcoins.
seriosuly, people need to know more about what they are talking about.

[zeetubes]

"The Bitomat service is now up for sale for 17,000 Bitcoins to help recover the cost of the missing coins and return them to their owners. At a current conservative market estimate of near $13 per BTC that would put the sale price of the exchange as exceeding $221k."

so yes. it's exactly like your 600,000 hilton points. exactly the same thing

And so how much did he wipe off of the value of the bitcoin market on Monday?

[superduh]

"The Bitomat service is now up for sale for 17,000 Bitcoins to help recover the cost of the missing coins and return them to their owners. At a current conservative market estimate of near $13 per BTC that would put the sale price of the exchange as exceeding $221k."

so yes. it's exactly like your 600,000 hilton points. exactly the same thing

And so how much did he wipe off of the value of the bitcoin market on Monday?

2,000,000 hilton points

[Chuck Finley]

edit: when mtgox was hacked he paid out of mtgox's profits so noone lost their bitcoins.
seriosuly, people need to know more about what they are talking about.

Well if he did that when it supposedly wasn't Mt. Gox's fault (I'd still argue that security is their responsibility) and since he has admitted this is 100% Mt. Gox's fault ("oops we didn't notice bitcoin updated - it's not really a core part of our business anyways so we weren't paying attention") does this mean he is going to compensate all Gox customers so they aren't shorted any BTC due to Gox's incompetence?

2,000,000 hilton points

ell

oh

ell.