That's a refreshing read. No hysteria, good analysis and interesting speculation.
"Based on how nonplussed Gox and their staff have been, as well as the resilience of the market following announcement of the seizure, I don’t think the sum value of seized funds was significant with respect to Gox’s cash flow." I hadn't thought of that, but it seems to make sense. The scale of this event may be much smaller than we might have been assuming.
"the seizure order doesn’t indicate that DHS will try to throw Karpeles in jail. Rather, they want compliance with, or less blatant disregard for, money services businesses registration requirements." Perhaps it really is this mundane and the State just likes to remind everyone of its muscle by using a "seizure" instead of a letter requesting compliance. Maybe they like the extra revenue they get from a "seizure" too - they certainly need revenue these days.
Topic: 2013-05-14 Department of Homeland Security Shuts Down Dwolla Payments to/frm Gox (Read 3559 times)
May 16, 2013, 07:57:05 AM
May 15, 2013, 11:16:47 PM
This is worth reading - analysis of the bust, with an informative graph:
http://numismatics.pwnz.org/?p=222
Summary - it could've been much worse, Gox will have a chance to get their crap together.
http://numismatics.pwnz.org/?p=222
Summary - it could've been much worse, Gox will have a chance to get their crap together.
It depends, if Gox is forced to comply with legislation that has to disclose the sender and recipients of all USD transactions that they handle, the could be tricky for invalidated accounts. The may feel that they would loose too much business to do so.
May 15, 2013, 10:46:23 PM
This is worth reading - analysis of the bust, with an informative graph:
http://numismatics.pwnz.org/?p=222
Summary - it could've been much worse, Gox will have a chance to get their crap together.
http://numismatics.pwnz.org/?p=222
Summary - it could've been much worse, Gox will have a chance to get their crap together.
May 15, 2013, 09:28:35 PM
Maybe the most surprising in all of this is the resilience bitcoin has shown to this event. The market reacted only briefly with a ~20% drop, but has already mostly recovered.
Wasn't even that much, went from $119.80 to $103.2 on Gox, that's a drop of about 13.8% and it was back up to $116 a couple of hours later.
May 15, 2013, 09:25:50 PM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
You're right with Gox, though Karpeles chose to go to Japan to find a job and keep the exchange there, so he played a role. As for japanese authority, I think it's actually naive to believe U.S can just have its way with Japan, or other sovereign nations, things are not as simple as on a high school playground, your alliance complies with your request when it suits their interest, while turns a deaf ear if it doesn't.
Thank christ that Gox isn't located in the UK.
Nah, there are times when even the UK Gov will be hesitant, otherwise they can just storm Ecuador's embassy, rather than spending millions of pounds to station policemen at its entrance.
The UK just might be the answer to a lot of the bitcoin/fiat transfer drama. London has the single greatest concentration of FX services. Once they realize crypotocurrency is the future of money they will be desperate to be a hub for it as well. They will want to host it and cleverly apply financial regulation so weak that a kitten could walk through it.
May 15, 2013, 09:10:47 PM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
You're right with Gox, though Karpeles chose to go to Japan to find a job and keep the exchange there, so he played a role. As for japanese authority, I think it's actually naive to believe U.S can just have its way with Japan, or other sovereign nations, things are not as simple as on a high school playground, your alliance complies with your request when it suits their interest, while turns a deaf ear if it doesn't.
Thank christ that Gox isn't located in the UK.
Nah, there are times when even the UK Gov will be hesitant, otherwise they can just storm Ecuador's embassy, rather than spending millions of pounds to station policemen at its entrance.
May 15, 2013, 12:05:51 PM
Anyone else who hasn't soiled their pants but reads this as "Bitcoin just got a bit harder to buy"?
Maybe the most surprising in all of this is the resilience bitcoin has shown to this event. The market reacted only briefly with a ~20% drop, but has already mostly recovered.
May 15, 2013, 11:41:00 AM
Anyone else who hasn't soiled their pants but reads this as "Bitcoin just got a bit harder to buy"?
May 15, 2013, 10:00:58 AM
Does anyone know, with a good degree of certainty (not guesses), if this has anything to do with Vesseness and their lawsuit?
There may be more to this story. Remember, MtGox supposedly agreed to move/transfer all US client accounts to US-based Coinlab - but for some reason they chose not to - even when facing a $75M lawsuit.
Why? Would things have played out differently if they had? Possibly.
(just a guess)
May 15, 2013, 09:45:30 AM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
You're right with Gox, though Karpeles chose to go to Japan to find a job and keep the exchange there, so he played a role. As for japanese authority, I think it's actually naive to believe U.S can just have its way with Japan, or other sovereign nations, things are not as simple as on a high school playground, your alliance complies with your request when it suits their interest, while turns a deaf ear if it doesn't.
Thank christ that Gox isn't located in the UK.
May 15, 2013, 08:57:51 AM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
You're right with Gox, though Karpeles chose to go to Japan to find a job and keep the exchange there, so he played a role. As for japanese authority, I think it's actually naive to believe U.S can just have its way with Japan, or other sovereign nations, things are not as simple as on a high school playground, your alliance complies with your request when it suits their interest, while turns a deaf ear if it doesn't.
May 15, 2013, 03:32:15 AM
Does anyone know, with a good degree of certainty (not guesses), if this has anything to do with Vesseness and their lawsuit?
I'm increasingly suspicious about this individual. He seems to be a man of "contacts". (VC support, opening TBF on Washington D.C. etc).
I'm increasingly suspicious about this individual. He seems to be a man of "contacts". (VC support, opening TBF on Washington D.C. etc).
May 15, 2013, 03:00:29 AM
all USD funds going into Mt. Gox go through ONE Dwolla account it seems
Huh?! No. A lot of people do direct wire transfers with mtgox, no dwolla involved at all. Mtgox supports a good half dozen transfer mechanisms.Oops, I meant to say "... all USD Dwolla funds going into Gox goes through one Dwolla account ... " ... good catch hawk-eye. And it actually should be USD Dwolla funds coming/going to Mt. Gox on further reading.
May 15, 2013, 02:24:19 AM
Ugh, I verified with Gox so I could do Dwolla transfers. I hadn't even used it yet. Now I can't, but my name might be going on a "list" if DHS seizes Gox's documents.
I have never transferred fiat too or from Gox only BTC.
May 15, 2013, 02:23:24 AM
all USD funds going into Mt. Gox go through ONE Dwolla account it seems
Huh?! No. A lot of people do direct wire transfers with mtgox, no dwolla involved at all. Mtgox supports a good half dozen transfer mechanisms. May 15, 2013, 02:21:08 AM
Ugh, I verified with Gox so I could do Dwolla transfers. I hadn't even used it yet. Now I can't, but my name might be going on a "list" if DHS seizes Gox's documents.
May 15, 2013, 02:18:24 AM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
So how does that fit with the US often complaining about countries that are "currency manipulators", when Japan is the worst offender and never gets mentioned.
US is the biggest currency manipulator ever, that's one of the main reasons Bitcoin came it exist in defiance of that manipulation. The US just point the finger at others to deflect attention.
http://www.policymic.com/articles/17742/ron-paul-warned-us-united-states-not-china-is-biggest-currency-manipulator
May 15, 2013, 02:12:46 AM
For all the complete lack of planning we have witnessed with Gox, Karpeles should be given credit for his foresight of setting up the exchange in Japan. So far the authority there still doesn't seem to know what's going on and why should they care.
Karpeles didn't setup mtgox in japan, he just bought it. As for Japan not knowing what is going on or why they should care, that's naive. If US says jump, Japan will say how high.
So how does that fit with the US often complaining about countries that are "currency manipulators", when Japan is the worst offender and never gets mentioned.
May 15, 2013, 02:00:30 AM
the DHS has been gearing up for civil unrest for some time and just might know when the plug will be pulled on the US dollar.. possible buy indicator.
May 15, 2013, 01:50:48 AM
Trouble is this kind of thing drives the markets, Gox went from $119 to $103 in no time when it hit the news.
Jump to: