Bitcoin Forum
July 17, 2018, 12:36:39 AM *
News: Latest stable version of Bitcoin Core: 0.16.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: What were the reasons behind the mtgox collapse?  (Read 1046 times)
hensi
Member
**
Offline Offline

Activity: 70
Merit: 10

TheSlimShady


View Profile
February 28, 2014, 01:58:01 PM
 #1

i am really shocked by the collapse of mtgox.what were the reasons for its collapse?
1531787799
Hero Member
*
Offline Offline

Posts: 1531787799

View Profile Personal Message (Offline)

Ignore
1531787799
Reply with quote  #2

1531787799
Report to moderator
MORE CRYPTO, LESS NOISE
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
dreamspark
Hero Member
*****
Offline Offline

Activity: 798
Merit: 1000


View Profile
February 28, 2014, 02:09:00 PM
 #2

No coins left....


Seriously no one know the exact reason until MK says. Until then its all speculation.
RaTTuS
Hero Member
*****
Offline Offline

Activity: 792
Merit: 1000


Bite me


View Profile
February 28, 2014, 02:09:06 PM
 #3

greed

In the Beginning there was CPU , then GPU , then FPGA then ASIC, what next I hear to ask ....

1RaTTuSEN7jJUDiW1EGogHwtek7g9BiEn
evansearle42
Sr. Member
****
Offline Offline

Activity: 366
Merit: 250


View Profile
February 28, 2014, 03:46:20 PM
 #4

i am really shocked by the collapse of mtgox.what were the reasons for its collapse?

hacker
meanig
Hero Member
*****
Offline Offline

Activity: 531
Merit: 500


View Profile
February 28, 2014, 03:48:49 PM
 #5

Still unknown. Mark might know but he isn't saying.
hensi
Member
**
Offline Offline

Activity: 70
Merit: 10

TheSlimShady


View Profile
February 28, 2014, 04:13:50 PM
 #6

No coins left....


Seriously no one know the exact reason until MK says. Until then its all speculation.

really? the owner hasnt told that why has the $300million company suddenly shut down?? its really scaring me. can this happen to other currency exchanges too?
grifferz
Full Member
***
Offline Offline

Activity: 154
Merit: 100


View Profile
February 28, 2014, 04:26:37 PM
 #7

can this happen to other currency exchanges too?
Yes. Though bear in mind that MtGox's history of failure stretches back more than 2 years.
go4nature
Member
**
Offline Offline

Activity: 70
Merit: 10


View Profile
February 28, 2014, 04:28:19 PM
 #8

Yes it will happen to other exchanges also. better save your bitcoin in cold storage. Spread it to multiple exchanges. Never put all your eggs in one basket.

Musent
Sr. Member
****
Offline Offline

Activity: 266
Merit: 250


View Profile
February 28, 2014, 04:30:46 PM
 #9

Greed, poor security and horrible management.
Epinnoia
Full Member
***
Offline Offline

Activity: 209
Merit: 100


View Profile
February 28, 2014, 04:35:45 PM
 #10

He has to fake their disappearance, or he'll be forced to turn them over to the Southern District of New York.  Can't be made to confiscate coins you no longer have due to an impossible leak...  Wink

Don't forget the 500k coins Mark stole back in 2011 either... 

My first miner -> ATI 4550 (7.2 Mh/sec): 
https://www.facebook.com/groups/cryptospeculators/
DannyHamilton
Legendary
*
Offline Offline

Activity: 2198
Merit: 1370



View Profile
February 28, 2014, 05:40:48 PM
 #11

Officially filed for bankruptcy protection in Japan today.

Claiming uninsured theft of 850,000 bitcoins.

hensi
Member
**
Offline Offline

Activity: 70
Merit: 10

TheSlimShady


View Profile
February 28, 2014, 06:46:48 PM
 #12

Officially filed for bankruptcy protection in Japan today.

Claiming uninsured theft of 850,000 bitcoins.
is there something like bankruptcy protection? n who will pay him the bitcoins back? n really has he lost all the bitcoins? even the coins at cold storage?
DannyHamilton
Legendary
*
Offline Offline

Activity: 2198
Merit: 1370



View Profile
February 28, 2014, 06:54:37 PM
 #13

is there something like bankruptcy protection?

Yes.

n who will pay him the bitcoins back?

Porbably nobody, but we'll have to wait and see.

n really has he lost all the bitcoins?

News reports indicate that he is claiming to have lost 850,000 of them.  It is not clear from the news reports that I've read how many they still have.

even the coins at cold storage?

I'm not convinced that MtGox had a true "cold storage" system in place.  Whatever they thought they were using for "cold storage" obviously was ineffective at protecting them from significant loss.  My best guess is that they were running "fractional reserve" for a long time hoping to earn enough to replace smaller losses from months (or years?) ago,  and were not paying attention to how large the reserve was.  Given their apparent lack of attention to detail, it wouldn't surprise me if thefts caused that reserve percentage to shrink over time without them realizing how low it was getting.

It is not yet clear if we are looking at incompetence, negligence, fraud, or some combination of two or three of those.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!