So whatever happened with Mt. Gox?

[waldox]

dont expect any money from mt gox

[CEG5952]

They likely ran a ponzi scheme with fractional reserve that got busted when the price collapsed.

Yes, but how did the fractional reserve come to exist in the first place? I'd love to get the down and dirty on all the hack attempts on Gox. My money is on some major hacks from years ago. That summer 2011 hack, maybe...

[okthen]

Anyhow -  if they have 200000 btc they HAVE to give them to the customers.
Maybe give each one around 1/3 of what they had?

[CEG5952]

Anyhow -  if they have 200000 btc they HAVE to give them to the customers.
Maybe give each one around 1/3 of what they had?

That's not how bankruptcy works. First, 200k is 1/4 of the BTC liability.   But it is a long process, and the court administrator/trustee may opt to liquidate the bitcoin and pay out fiat. Then there could be other creditors that come before traders.

[Gimmelfarb]

Anyhow -  if they have 200000 btc they HAVE to give them to the customers.
Maybe give each one around 1/3 of what they had?

That's not how bankruptcy works. First, 200k is 1/4 of the BTC liability.   But it is a long process, and the court administrator/trustee may opt to liquidate the bitcoin and pay out fiat. Then there could be other creditors that come before traders.

yikes. i hope they don't liquidate. how would they sell 200k without suppressing the price at all? that sounds like a pretty dark scenario. anyone want to shed more light on the Japanese bk process?

[bitgeek]

Anyhow -  if they have 200000 btc they HAVE to give them to the customers.
Maybe give each one around 1/3 of what they had?

That's not how bankruptcy works. First, 200k is 1/4 of the BTC liability.   But it is a long process, and the court administrator/trustee may opt to liquidate the bitcoin and pay out fiat. Then there could be other creditors that come before traders.

yikes. i hope they don't liquidate. how would they sell 200k without suppressing the price at all? that sounds like a pretty dark scenario. anyone want to shed more light on the Japanese bk process?

I'd also expect the investors will do whatever they can to get their money before the clients. The clients don't have much to say as they aren't (in most cases) represented in court by expensive lawyers.

They should go after Karpeles, seize and auction all his accounts and personal belongings, sell  Gox domain, site, bots, add it all to the pool and pay back  the debts. I'm sure this fat bastard has more cash than he claims.

[Harley997]

Been away from the computer for a while. I was wandering what was the final fate of Mt. Gox? Last time I checked, it had crashed, and no one thought they would get their money back. But there was rumors that people might get back a percentage back or something.

So any updates? Anyone get arrested or sued? And do we know for sure now that it was hackers? A lot of people were speculating that the exec's over there just took the money and ran.                                                                                                                                                                                                                                                                           

There have been no arrests (not that there shouldn't have been).

Gox filed for bk in Japan, as well as in the US.

The last I saw they are liquidating, however a number of groups have made offers to continue running the company.

Long story short, they lost 650k of 850k of their coins and around 25% of their fiat. They originally lost all of their BTC, but subsequently found 200K BTC.

[Este Nuno]

Been away from the computer for a while. I was wandering what was the final fate of Mt. Gox? Last time I checked, it had crashed, and no one thought they would get their money back. But there was rumors that people might get back a percentage back or something.

So any updates? Anyone get arrested or sued? And do we know for sure now that it was hackers? A lot of people were speculating that the exec's over there just took the money and ran.                                                                                                                                                                                                                                                                           

There have been no arrests (not that there shouldn't have been).

Gox filed for bk in Japan, as well as in the US.

The last I saw they are liquidating, however a number of groups have made offers to continue running the company.

Long story short, they lost 650k of 850k of their coins and around 25% of their fiat. They originally lost all of their BTC, but subsequently found 200K BTC.

Has there been any more information on how they 'lost' all that btc? I remember Karpeles was spewing some bullshit about transaction malleability but that sounds like complete bullshit.

[Tzupy]

The last rumor I had read is that Karpeles believes the bitcoins were stolen during the summer of 2013, but there's nothing official.
OTOH he could have stolen them himself and just pretends someone else is to blame. We'll probably know the truth in a couple of years.

[Cranky4u]

The last rumor I had read is that Karpeles believes the bitcoins were stolen during the summer of 2013, but there's nothing official.
OTOH he could have stolen them himself and just pretends someone else is to blame. We'll probably know the truth in a couple of years.

If he doesn't get bumped off in the mean time...

[ajareselde]

there are a lot of opinions on what actualy happened to mt.gox, i believe none of them.
imho , mt.gox ceo 100% was greedy enough to play/trade with clients money, swinging the market like a whale, it isnt as crazy as it sounds if take a moment to think about it.
but in the end it was their incompotence that got them, and im surprised i was lucky enough not to have money there in the time of the fall, coz i usualy allways get burned, last time it was liberty reserve, those of us who are longer here know what im talking about...

cheers

[leezay]

there are a lot of opinions on what actualy happened to mt.gox, i believe none of them.
imho , mt.gox ceo 100% was greedy enough to play/trade with clients money, swinging the market like a whale, it isnt as crazy as it sounds if take a moment to think about it.
but in the end it was their incompotence that got them, and im surprised i was lucky enough not to have money there in the time of the fall, coz i usualy allways get burned, last time it was liberty reserve, those of us who are longer here know what im talking about...

cheers

It won't surprise me if this is true.

Certainly won't be the 1st broker to use customer's money to gamble.

[transient858]

Mtgox went busted and claimed hacked.

[okthen]

there are a lot of opinions on what actualy happened to mt.gox, i believe none of them.
imho , mt.gox ceo 100% was greedy enough to play/trade with clients money, swinging the market like a whale, it isnt as crazy as it sounds if take a moment to think about it.
but in the end it was their incompotence that got them, and im surprised i was lucky enough not to have money there in the time of the fall, coz i usualy allways get burned, last time it was liberty reserve, those of us who are longer here know what im talking about...

cheers

It won't surprise me if this is true.

Certainly won't be the 1st broker to use customer's money to gamble.

This would make sense.
In fact, anything makes sense except the "we were robbed" story.
I simply don't believe that they didn't have the keys in cold storage.

[Harley997]

Been away from the computer for a while. I was wandering what was the final fate of Mt. Gox? Last time I checked, it had crashed, and no one thought they would get their money back. But there was rumors that people might get back a percentage back or something.

So any updates? Anyone get arrested or sued? And do we know for sure now that it was hackers? A lot of people were speculating that the exec's over there just took the money and ran.                                                                                                                                                                                                                                                                           

There have been no arrests (not that there shouldn't have been).

Gox filed for bk in Japan, as well as in the US.

The last I saw they are liquidating, however a number of groups have made offers to continue running the company.

Long story short, they lost 650k of 850k of their coins and around 25% of their fiat. They originally lost all of their BTC, but subsequently found 200K BTC.

Has there been any more information on how they 'lost' all that btc? I remember Karpeles was spewing some bullshit about transaction malleability but that sounds like complete bullshit.

Malieability is the latest "explanation" that I have read/heard. There was an article that starting at a certain time (I believe it was in 2011) there have been much too few "mutated" transactions to possibly steal that many coins from Gox.

It is possible they lost the coins due to malieability prior to the above study when coins were worth much less then they are now.

I assume that Gox had previously under-reported the number of coins that were stolen/lost in previous attacks.

A major factor in the fall of Gox was likely the dramatic rise in the price of BTC. If the price was $800 it would take more in terms of dollars to recover any lost coins then it would if the price of BTC was back at $10 (they need to do 80x as much trading to recover the same amount of BTC).

[ShakyhandsBTCer]

there are a lot of opinions on what actualy happened to mt.gox, i believe none of them.
imho , mt.gox ceo 100% was greedy enough to play/trade with clients money, swinging the market like a whale, it isnt as crazy as it sounds if take a moment to think about it.
but in the end it was their incompotence that got them, and im surprised i was lucky enough not to have money there in the time of the fall, coz i usualy allways get burned, last time it was liberty reserve, those of us who are longer here know what im talking about...

cheers

It won't surprise me if this is true.

Certainly won't be the 1st broker to use customer's money to gamble.

This would make sense.
In fact, anything makes sense except the "we were robbed" story.
I simply don't believe that they didn't have the keys in cold storage.

I think that the management was simply incompetent. They had zero internal controls.

[Este Nuno]

there are a lot of opinions on what actualy happened to mt.gox, i believe none of them.
imho , mt.gox ceo 100% was greedy enough to play/trade with clients money, swinging the market like a whale, it isnt as crazy as it sounds if take a moment to think about it.
but in the end it was their incompotence that got them, and im surprised i was lucky enough not to have money there in the time of the fall, coz i usualy allways get burned, last time it was liberty reserve, those of us who are longer here know what im talking about...

cheers

It won't surprise me if this is true.

Certainly won't be the 1st broker to use customer's money to gamble.

This would make sense.
In fact, anything makes sense except the "we were robbed" story.
I simply don't believe that they didn't have the keys in cold storage.

I think that the management was simply incompetent. They had zero internal controls.

Well everyone has known that Mt.Gox was incompetent since early 2011.

I'm mostly waiting for some specific answers on what happened. Because at this point it looks incredibly shady.

[kerafym]

Well everyone has known that Mt.Gox was incompetent since early 2011.

I'm mostly waiting for some specific answers on what happened. Because at this point it looks incredibly shady.

Yes, but most people are not aware Mt gox also steal from customer beside being incompetent.

[Este Nuno]

Well everyone has known that Mt.Gox was incompetent since early 2011.

I'm mostly waiting for some specific answers on what happened. Because at this point it looks incredibly shady.

Yes, but most people are not aware Mt gox also steal from customer beside being incompetent.

That is very true. People did trust Mt.Gox.

[Malok]

Yea, Mt. Gox was one of those places that even non-crypto currency persons may have come across or at least heard of.  Don't think they'll be able to make a come back with all the negative press that came out on them.