Topic: Is Mr. Gox playing like the cat with the mouse ? (Read 1114 times)

In a scheme like that
1)  you pretty much need the complicity of the CFO, and a staff of about 20 super loyal and confidential employees to work 12 hr days to pull that off.
2)  you need the market to continue to rise on one side (non MG btc) and not the other side (MG btc),
3)  the numbers you posted must also reflect the fact that the fees collected will only be from his customers,
4)  he must have a stable supply of low price inventory to buy, if MG seller stop selling or only sell high then the scheme doesn't work
5)  if he goes to another market place with a bucket full of CC the price at that market will fall, if they used accounts connected to them the paper trail will be too clear, so they would need many anonymous accounts at multiple exchanges to do multiple transactions a day such that that is doesn't reduce the market value, or trigger internal flags that may indicate improper market manipulation activity.
6)  for the exchanges that have 'know your customer laws' policies it will be a major stumbling block.  
7)  for the exchanges with 2 layer authorization it will present a logistical nightmare
8 )  you could expect hacking activities to surge even more so that usual if the CC community feels such a scheme is a foot
9)  if they use aged accounts that may have already been flagged in the past for inappropriate  behavior but didn't materialize to any closure or investigation, a new trigger may result into multiple investigations of not just current but also past actions.
10)  only MG, bitstamp and btc-e did the no withdrawal thing, if any other exchanges did it and if MG funds were stuck there the scheme suffers


real life often works a bit different than on paper

Refer again to the same statement I made w
hich you quoted. If mtgox doesn't have coins, they aren't going to magically generate them via their customer's trading no matter what happens on their exchange. All that is happening is account ledgers are being changed.

In the last few days daily volume on Mt. Gox was around 50K BTC/day (http://bitcoincharts.com/markets/mtgoxUSD.html). With a rough income of 250 BTC/day of commission for Mr. Gox. Sold on BitStamp these 250 BTC are worth around 160K$.

If he's able to move this money back to Mt.Gox, he can buy 500 BTC or so, doubling he's wealth. Even if it takes 2 days for a whole loop, we are talking about big money.

In a week he's able to easily make around 5,000 BTC, and the money will double every week. If he's able to keep withdrawalk closed on his site for some weeks, he can buy back all the BTC that were stolen/lost/sold and be back on business.

Not a bad recovery plan, after all.

Nick.

I leave this one here, the more points of view you read the more educated your choice will be.

http://www.coindesk.com/mt-gox-may-headed-bankruptcy/

lol

If gox is insolvent and doesn't have any bitcoins, then buying imaginary bitcoins from their customer's account ledgers wouldn't make a difference.

imagine all the frappes he must be dreaming of   

You gotta admit, I played this stinking bitcoin like a harp from Hell!
http://static3.wikia.nocookie.net/__cb20110723234216/batman/images/c/ca/ThePenguinDannyDevito.jpg

the assumption is that "Mr. Gox" would have the foresight to know that the other markets would segregate themselves from him, and that he would have the funds to do it when the price is at the differential you expressed.

My guess is they probably did all of what they could do in that way however just after the announcement was made over that weekend, but because they failed to announce that withdrawals would resume again on the Monday instead of the anticipated double dive, the markets separated from him with diverging btc values.  In my example he's holding coin for $450 on avg, hoping to see an $800+ value anywhere, but that doesn't happen over the span of the whole next week -- he's stuck.

Over the next month will be able to use it in small amounts so as not to indicate a supply surplus and trigger lower prices. 

There is talk of bankrupcy, with that who ever his corporate creditors are they are going to squeeeze him like a pimple so  his ONLY hope is slow payout and fast price increase.

I think Mark is the person using Karpeles' exchange, or is that Rube or Patsy?

 

Mr. Gox = Mark? 

I'm more fascinated by Gox users, they don't see forest for the trees, they are more fascinated by small gains and risk to loose much more. All of them think that they are the one who will buy at the bottom... When the time comes it will be like $300 (2 second passes) $900 and big bunch of people who stays in shock or get some kind of ulcer.

I think Mister Gox is pretty naughty

Interesting. I never thought that Mr. Gox was the kind of guy that would do that. But he could certainly do that.

If I were mr. Gox I would buy Bitcoins on my system (closed for everyone else) and selling them on Bitstamp for a nice 100% or more gain, without taking any risk.

Why should I work to restore the normal operation of my system and lose this wonderful opportunity to make huge gains ?

Nick.