From reddit: MtGox might have lost control to the majority of their BTC deposit - page 2.

InsertButtcoin

newbie

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Quote

MagicalTux, if you're reading this: you absolutely need to restore consumer confidence by performing a simple transaction to show that you are actually still in control of your BTC.

Sounds like doing this would take 1 min and could boost morale 1,000 fold.

kokojie

legendary

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Quote from: grue on June 22, 2011, 10:38:52 AM

who cares, just withdraw as fast as you can, and you'll be fine.

If MtGox has indeed lost control to their BTC deposit, it'll be impossible to withdraw any BTC, or possibly the first few withdraws might be successful if MtGox pays out of their own pocket (which is pretty deep considering they were making $30k worth of BTC per day). So I guess your advice is correct, withdraw as fast as you could and don't get left behind Grin

Glorious House of Barry

newbie

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Another possible explanation for this:

Many of us suspect that MtGox is short some bitcoin as a result of the hack. Between the start of the hack/abnormal trading and closing his doors, at least some BTC were allowed to be withdrawn. There is no guarantee he will get them back. Until his accounts are whole, he is effectively practicing fractional reserve banking: a funny irony given the ideological underpinnings of Bitcoin.

Who holds those ancient bitcoins? Probably some old guard. Think of them as being kept in reserve for a catastrophe. This is somewhat of a catastrophe. I could easily see Mark calling in a favor from "Satoshi" or friends to make up the shortfall. There's your 1,500 BTC.

Edit: fixed amount

grue

legendary

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who cares, just withdraw as fast as you can, and you'll be fine.

[Coins!]

member

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So.. if mtgox moves 432,000 BTC around, that proves that he has control of them, sure. But how does that restore any confidence in his banking website, which is repeatedly shown to be vulnerable in terms of security?

onesalt

hero member

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Even more evidence that this is gonna end in a bank run when mtgox reopens and the price of btc plummets to nothing, sadly.

flaxceed

sr. member

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>>Note new email [email protected]<<

NOW things are getting interesting.

kokojie

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http://www.reddit.com/r/Bitcoin/comments/i4xgc/follow_the_money_trail_part_2_1500btc_generated/

Topic: From reddit: MtGox might have lost control to the majority of their BTC deposit - page 2. (Read 4729 times)