Topic: Gox Gone, Insolvent - page 2. (Read 13057 times)

Can anybody shed any light on the coins at this address:
https://blockchain.info/address/1Drt3c8pSdrkyjuBiwVcSSixZwQtMZ3Tew?offset=0&filter=0

Co-incidental number of coins don't you think  

First deposit in 2012 though so perhaps unrelated

I never had any business with Mt.Gox. and I understand a lot of people did and will loose money on this but, I can't wait for this exchange to disappear so their incompetence will stop affecting the price so much.
We need stability and trustworthy business.
So, is this whole thing actually good news? Well, for a lot of people it would be hurtful but, in the end, I believe the weeding out will be good.
The price will bounce back up folks and we'll be stronger, don't give up!

I'm barracking for Gox to die as much as the next person, but is there any proof that this document is legitimate?

There's are some pretty amateurish tone and some cagey sentences in there. Is this really how people write documents for multi-million dollar businesses?

I'm just a software developer but my meeting minutes read better than this. I mean it is a draft... but still. So who's the source? Good Guy Greg the filing clerk, just wanting to get the truth out to the bitcoin community?

Also, loved these, under 'Other Assets':
1.1 million of account and 550,000 verified customers
High publicity (broken but customers are still buying coins and depositing)

There was the occasional sheriff in the Wild West.  And malefactors got strung up or at least horse whipped, tarred and feathered, and run out of town on a rail.

In any event, this amateur hour bullshit needs to end.  How difficult is it to comprehend the idea that people who run an online trading game card exchange are not necessarily to be trusted with hundreds of thousands of other people's BTC and millions in fiat?

If that document is correct they have lost 90% of all customer assets, though they may have recovered some by buying back at the low prices.

Under the laws of every major country, at this point they cannot simply carry on trading and hope to get out of it. They are insolvent and have done so negligently with customer assets. They should be closed, liquidated and the remaining assets distributed. No one will ever trust them and the moment they re-open only a fool would do anything other than withdraw any coins/cash they could.

What does it take for the Bitcoin world to realise that many of the rules and regulations that exist with Fiat and Banks are there to protect customers. All exchanges should be properly audited and publish audited statements proving their solvency.

Bitcoin = wild west = scam/idiots, sadly yet again..... (so much promise that continues to be wasted by a community that accepts these behaviours)

So basically, aside from some corpspeak bibble-babble, their strategy is to change their name.  Because that's all I took away from that load of happy horseshit.

"John Doe" - BTC-E CEO

http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft


CRISIS STRATEGY PLAN"


 
Financial Assets and Liabilities
AssetsLiabilitiesBitcoins
2,000 BTC in the Hot Wallet624,408 BTC(Customers) +120 000 ( MtGox) -
 80 208 BTC From banned or suspicious accounts
Fiat
22,430,000 USD In the bank account (averaged across currencies)55,000,000 USD (but still unclear at this point)5,000,000 USD held by CoinLab5,500,000 USD held by DHS
Total
 
32,430,000 USD + 2,000 BTC ( MtGox av price 160 USD= 320,000 USD ) 55,000,000 USD + 744,408 BTC (MtGox av price 160 USD= 119,105,280 USD)

 
Other Assets
- 1.1 million of account and 550,000 verified customers - High volume of trading - Trained AML team and process - High publicity (broken but customers are still buying coins and depositing) - Valuable domain names: bitcoins.com, etc - New trading engine (Midas) - New brand and services ready to be launched (Bitcoin Cafe, Japanese wallet "Bitpocket")

 
Part 1: To reduce liabilities
The stakeholders of MtGox are not the owners, but everyone in Bitcoin. This is sad but the reality. The current situation will negatively affect everyone who owns or operates in Bitcoin. We will need to inject fresh coins inside the system in order to establish a basis to eventually clear the books by running the exchange (perhaps 200,000 coins). The costs of not doing so are incalculable at this stage.
Support from Bitcoin big players and core community - long term, high leverage:
Coins for equity, coin donations, and cash injections to buy coins at the cheap MtGox price are some options among many.
Bet on future profit to refill the lost coins - Long term, low leverage:
Regardless of malleability and regulatory issues, MtGox's main problems are massive robbery and poor bitcoin accounting. However, the business as an exchange is highly profitable and healthy when run properly.
(Please refer to the business plan draft attached)
 

 
MtGox business is healthy and profitable
 
Projection Draft
Income Statement
* April 1
st
, 2012 - March 31
st,
 2013** April 1
st
, 2013 - March 31
st,
 2014*** April 1
st
, 2014 - March 31
st,
 2015*** April 1
st
, 2015 - March 31
st,
 2016
(Amounts in thousands of USD
Net Sales1,35110,75031,50071,950
Cost of Goods Sold40100150200Gross Profit1,31110,65031,35071,750
Selling, General and Administrative Expenses 1)1,0997,63511,35015,900
Operating Income2123,01520,00055,850Interest Income671440Foreign Exchange Gains76--- Non Operating Result8271440Ordinary Income2943,02220,01455,890Corporate Taxes81,0226,16416,890
Net Income2862,00013,85039,0001) Breakdown of Selling, General and Administrative Expenses
* April 1
st
, 2012 - March 31
st,
 2013** April 1
st
, 2013 - March 31
st,
 2014*** April 1
st
, 2014 - March 31
st,
 2015*** April 1
st
, 2015 - March 31
st,
 2016
(Amounts in thousands of USD
Subcontracting Expenses 2)8143,6506,20010,000Accountant, Consultant and Lawyer Fees1673,3004,0004,000Commission Fees513404151,000Depreciation0125360400Advertising Expenses475160200Salary60105130150Other34085150
1,0997,63511,35015,900


 
Part 2: Shut down MtGox.com, launch new branding Big focus on the future
Letter from the CEO Admitting his errors and expressing desire to fix the situation by stepping back as a CEO. Blaming the technology implementation which was not sized and designed to deal with such level of transactions or to deal with malleability.
 
It’s time to step up and face reality by bringing a transition of respected advisors who will run things properly. In Japan, a CEO cannot resign until a new CEO is nominated. In that case customers knows that MtGox is still around and working, but under new management. Try to reduce the impact and raise stakeholder confidence, and eventually get Mark out. New branding, means that there are future-forward plans already in the works, and customers will see that MtGox actually has a plan in motion

 
Part 3: 1 month transition while updating the industry
In order for stakeholders to follow up on MtGox progress, we will use SNS platforms with constant positive communications. - Every new milestone reached will be announced: Team members, new marketing, progress on the technology implementation etc...
- The Customer support will stay operationa
l to deal with people who want to have access to their account/history
- During this period, the advisory board will be created,
 hopefully a new CEO can be chosen and try to reset and secure the trading engine platform. Expertise to find: Analysts, top class developers (crypto), IT security expert, marketing, Bitcoin experts, economists, execs (CFO, COO, CMO, etc)

Exactly.  What a total joke.  I can't believe they expect people to believe this transaction malleability crap.

How does a cold wallet leak anyway?  lol  By definition, a cold wallet is supposed to be completely segregated.

I feel sorry for everyone that got robbed.  That's what happened too.  They robbed all their customers blind.

Pathetic.

NO BTC-E representative, lol. i'm withdrawing mine from there ryt now.

On page 4 of the document it says:
Which means they are still short 312K BTC.

Is that accurate? I saw a document posted with numbers, but is it real?

They are short of 624 K BTC.

What about that london guy? I guess he is hunting Mark right now with knife .

At current prices they're saying they're short 350k btc, 170 million, but for most of bitcoin history btc price was well under 100 bucks and that's when most of the fraud would have occurred, so what is it 20 million dollars? Ofc it's absolutely ridiculous to go so many years without discovering the issue.

.. i think they mean vanish as in lost the private keys, deleted the back-ups or sent to black-hole addresses. Like 744k btc gone poof!

Like the 17,000 at that euro exchange BitcoMat that was in the cloud ... and then vanished into the aether apparently. http://siliconangle.com/blog/2011/08/01/third-largest-bitcoin-exchange-bitomat-lost-their-wallet-over-17000-bitcoins-missing/

They were fine when they were under the old ownership.

Concur. When I was starting to get interested in bitcoin back two months ago, one of the very FIRST things I learned was not to do business with Gox.

Wouldn't that many bitcoins moving around have been seen on the blockchain?

Gox has been proved incompetent since June 2011.

Anybody who lost money there has had long and fair warning. Not to mention you just lost control over all those identity documentations and all records of your bitcoin transactions into govt. surveillance dragnets at least, probably criminal hands also (if there is any distinction these days).

... bitcoin and fiat exchanges will never mix, they are like oil and water.