Mtgox can only run insolvent!

[Electra]

Mtgox can only run insolvent!


I see here and there people trying naively to send fiat to mtgox to take advantage of the situation and buy BTCs at a low price.
Those people should be thinking about it twice.
Mtgox is in trouble and been trying to hide it for almost one year now.
Here are some facts you should consider first:
-U.S. Department of Homeland Security had seized $2.9 million from Mt. Gox’s Dwolla account.
http://cdn.arstechnica.net/wp-content/uploads/2013/05/Mt-Gox-Dwolla-Warrant-5-14-13.pdf
-$2.1 seized in Mt. Gox’s Wells Fargo accounts.
Mtgox failed registration as a Money Service Business and has never recovered from that.
This was a personal involvement from MArk Karpeles and the seized account belongs to Sigum Mutulum,which is...mtgox...
-Coinlab has filed a 75 millions $ lawsuit against mtgox.
http://fr.scribd.com/doc/139160091/Coinlab-v-Mt-Gox
-Mtgox has been involved in Silk Road bust and I guess is still working with the feds on that side.
http://thegenesisblock.com/mt-gox-seizures-linked-silk-road-fed-testimonies/
-According to what is transaction malleability and how Silk road 2 got hacked,I really believe mtgox lost a lot of money before realizing.And knowing how They poorly managed their business,it's highly possible they only realized when they started running out of BTC.
I think they were losing BTCs since a long time ago but only found the breach these days.I can even imagine them suspecting the staff when they started missing BTC with no reasons...
On the legal side,Im sure mtgox had and is having a lot of issues with LE.
They are definetly involved with investigations centered on Silk Road,Bitinstant Transfers (Shrem's case) and Liberty Reserve.
Dont forget they were allowing to refund your account with Liberty Reserve (which was great for the young BTC currency at that time) with no verification.
Look at the last 12 months:Mtgox ran from an issue to another.Has always been lying or putting the blame on something else.
Plus,they have a bunch of money/BTC to pay back with lawsuits and seizures.They probably lost a lot of BTC with their poorly customized software too.
Do you really think Mtgox would tell you the truth?Or would give any real and serious answer?
So I think for all these facts,Mark Karpeles has been sinking mtgox ship and is already working on his new 3D company and his "bitcoin café".
I didnt find any reason they would resume their service and come back legit.
So please bear this in mind before sending your money to the Titanic...

[zipmaster]

http://www.coindesk.com/mt-gox-may-headed-bankruptcy/

[bitmarket.io]

it just needs to die already. it's making bitcoin look bad. amatures that are into magic card games shouldn't get inolved in serious business with serious money.  it's a good thing we are weeding out the amatures now.

[evansearle42]

Nah, they collected so much fees after they decided to stop bitcoin withdrawal.

[vehementchrome]

It seems like this has been a long time coming for mt gox. I'd like to say they'd weather it, but honestly, their track record and all these issues say otherwise...

[StanleyLi]

Believe it or not, mtgox can easily get out of this mess.   It's its customer that will get burnt.


Just think about this.   No one can currently withdraw USD or Bitcoin from their mtgox accounts now and people are trying to sell their bitcoins at mtgox at a deep discount....  now, what if mtgox create a bunch of dummy accounts on their own exchange and buy up all these bitcoins for its customers at a deep discounts and pays for them with non withdrawable USD back to their customer's accounts?   Then come tomorrow, they announce they are not insolvent and have enough Bitcoins in reserve for everyone to withdraw?   Bitcoins in mtgox will now skyrocket as everyone with these non-withdrawable USDs in their account will have to pay a premium to buy their bitcoins back before and then withdraw them?   Buy low, sell high, suddenly, all of mtgox financial problem will go away.   The only people that will get burnt are their customers. 






 

[Electra]

it just needs to die already. it's making bitcoin look bad. amatures that are into magic card games shouldn't get inolved in serious business with serious money.  it's a good thing we are weeding out the amatures now.

I really liked Mtgox on 2011/2012.I cant deny they were one of the first to provide API and other PHP codes to accept BTC.They really were useful for BTC to grow.
But what they did these last 12 months was worst cos it was when BTC neeeds real and serious entrepreneurs and investors.
As we may all know,Bitcoin (like any market) is very news sensitive.
So I think the sooner mtgox page is turned,the better it is for BTC.

[pleiotropik]

People at the bitcoin foundation shouldould say something, anything. Their silence complicates matters for the whole community. In money matters, Due diligence is of utmost urgency... As hours/days drag by, they get sucked into the Gox vortex of mistrust.

[RickJamesBTC]

If no money can get in, and no money can get out, why are people trading on the site? It looks like this is the final death crash for it, dragging the price down everywhere else. If they are just using this as an excuse to rebuy their own bitcoin at $100 or less, its working.

[glendall]

It bothers me that the community doesn't stop using Gox. They have been major participators, or arguably even the instigators, of more than half of the major price crashes for bitcoin yet people still go back.

I'd imagine the 'last straw' would be the idiotic blame game Kappels (or whatever is name is) put on bitcoin to cover Mt Gox's incompetence, or, the huge evidence of insider trading that recently surfaced, but if I had to bet, knowing how things didn't change in the prior crashes they caused, people will go back to them anyways, and it kind of sucks.

[ZephramC]

It bothers me that the community doesn't stop using Gox. They have been major participators, or arguably even the instigators, of more than half of the major price crashes for bitcoin yet people still go back.

Big part of the community does. That is why the price is crashing. The ones still using MtGox will either loose their money (if they are wrong) or profit tremendously (if they are right). Both outcomes will be deserved and self-regulating.

[boumalo]

It bothers me that the community doesn't stop using Gox. They have been major participators, or arguably even the instigators, of more than half of the major price crashes for bitcoin yet people still go back.

Big part of the community does. That is why the price is crashing. The ones still using MtGox will either loose their money (if they are wrong) or profit tremendously (if they are right). Both outcomes will be deserved and self-regulating.

If mtgox shut down, this cool guy http://www.youtube.com/watch?v=ob9Ak1t09Ao is going to lose his money

I hope he sold some of his goxBTC

[cRazY dWarF]

we will see in due future what will happen, if I am not mistaken mtgox was the first exchange... it would be a shame that it dissapears, but if he is involved in all this shady bussines, it would be good for BTC market taht it is gone, for good

cryptos are the future..

[Electra]

This is Mtgox issue,not bitcoin.
Despite all the bad news (china,russia,shrem,mtgox..) BTC remained strong and has only moved for a few %.
Actually,all these news are good for bitcoin.With BTC gaining maturity,all those fake developpers,investors and scammers are getting out of the game.

[Unacceptable]

It bothers me that the community doesn't stop using Gox. They have been major participators, or arguably even the instigators, of more than half of the major price crashes for bitcoin yet people still go back.

I'd imagine the 'last straw' would be the idiotic blame game Kappels (or whatever is name is) put on bitcoin to cover Mt Gox's incompetence, or, the huge evidence of insider trading that recently surfaced, but if I had to bet, knowing how things didn't change in the prior crashes they caused, people will go back to them anyways, and it kind of sucks.

+ 1000 

I learned the hard way in early 2012 after the $30 crash,I had 36BTC stolen from my account,my brother had 25 stolen from his account & many others too.Inside job for sure............

Screw GOX!!!!!!!!  Die already!!!!!!!!!! 

[RickJamesBTC]

All it will take is the exchanges to decouple from the mt gox movements, and bitcoin price will recover quickly. Bitcoin wisdom should join the other big trackers and get them off the public view. Sorry if you have money there, its been gone for a long time.

[Sindelar1938]

Mt Gox is almost certainly going under

You are advised to have fiat rather than btc in your acct as fiat claims may be easier to enforce in bankruptcy court

[greenalliancegroup]

MT.Gox is basically when someone gets hit by a car and ends up in comatose. It being held up in life support by other bitcoin exchanges and the community itself.

Pokemon Mark Karapeles is toasted. There is no way he can recover MT.Gox from all those seizures by the Feds. Unless everyone in there mother helps him out. Which no one will do because he single handedly destroy bitcoin image and rep within a week. By blaming it on a protocol issue that everyone in there mother knew 1 year ago. I wouldn't be surprised that he gave hackers "a way" to steal BTCs from others. He threw us all under the bus beside the MT. Gox users.

I hope whatever this Pokemon goes, the BTC community drives him out. Probably the only place he is welcomed is in Antarctica.

[Bit_Happy]

MT.Gox is basically when someone gets hit by a car and ends up in comatose. It being held up in life support by other bitcoin exchanges and the community itself.

Pokemon Mark Karapeles is toasted. There is no way he can recover MT.Gox from all those seizures by the Feds. Unless everyone in there mother helps him out. Which no one will do because he single handedly destroy bitcoin image and rep within a week. By blaming it on a protocol issue that everyone in there mother knew 1 year ago. I wouldn't be surprised that he gave hackers "a way" to steal BTCs from others. He threw us all under the bus beside the MT. Gox users.

I hope whatever this Pokemon goes, the BTC community drives him out. Probably the only place he is welcomed is in Antarctica.

Do you have any idea how much money they were making the last half of 2013?
Gox was on a pace to easily make back everything stolen by the USA Feds. The only real question is how much they lost this year, and they claim to have had most in cold storage.
Long Live the Great Gox!  

[greenalliancegroup]

MT.Gox is basically when someone gets hit by a car and ends up in comatose. It being held up in life support by other bitcoin exchanges and the community itself.

Pokemon Mark Karapeles is toasted. There is no way he can recover MT.Gox from all those seizures by the Feds. Unless everyone in there mother helps him out. Which no one will do because he single handedly destroy bitcoin image and rep within a week. By blaming it on a protocol issue that everyone in there mother knew 1 year ago. I wouldn't be surprised that he gave hackers "a way" to steal BTCs from others. He threw us all under the bus beside the MT. Gox users.

I hope whatever this Pokemon goes, the BTC community drives him out. Probably the only place he is welcomed is in Antarctica.

Do you have any idea how much money they were making the last half of 2013?
Gox was on a pace to easily make back everything stolen by the USA Feds. The only real question is how much they lost this year, and they claim to have had most in cold storage.
Long Live the Great Gox!  

I agree MT Gox probably made a hand over fist in transaction fees last year. Although the Feds confiscating 5million dollars. Them moving into a hotel. Another company suing them for 75 million dollars. There is no way they have enough to survive.

The question is how much are owed to Gox users and how many will withdraw at that point. If they have 20k worth of cold storage BTC. MT. Gox will be alright.