Because of the seized funds, Mtgox is now essentially running a pyramid business. New money coming in is used for paying customers waiting to withdraw.
you do know that mtgox ACTUALLY makes MONEY with it's trades. it's taken in more money off fees than has been "seized".
it's not like they actually DONT MAKE MONEY
Well duh superduh.
We all know they have transaction fees. But it nowhere totals the amounts of fiat & btc flowing in and out. The transaction fees only cover their operating costs and profits. There is no way their profits can cover big seizures. That is why they are "floating" withdrawls over time. As money comes in, they allow a small fraction out. If/when they get their funds back then things will return normal. If there is another large seizure it will probably sink them.
