Topic: Mtgox can only run insolvent! - page 2. (Read 5917 times)

If mtgox shut down, this cool guy http://www.youtube.com/watch?v=ob9Ak1t09Ao is going to lose his money

I hope he sold some of his goxBTC

Big part of the community does. That is why the price is crashing. The ones still using MtGox will either loose their money (if they are wrong) or profit tremendously (if they are right). Both outcomes will be deserved and self-regulating.

It bothers me that the community doesn't stop using Gox. They have been major participators, or arguably even the instigators, of more than half of the major price crashes for bitcoin yet people still go back.

I'd imagine the 'last straw' would be the idiotic blame game Kappels (or whatever is name is) put on bitcoin to cover Mt Gox's incompetence, or, the huge evidence of insider trading that recently surfaced, but if I had to bet, knowing how things didn't change in the prior crashes they caused, people will go back to them anyways, and it kind of sucks.

If no money can get in, and no money can get out, why are people trading on the site? It looks like this is the final death crash for it, dragging the price down everywhere else. If they are just using this as an excuse to rebuy their own bitcoin at $100 or less, its working.

People at the bitcoin foundation shouldould say something, anything. Their silence complicates matters for the whole community. In money matters, Due diligence is of utmost urgency... As hours/days drag by, they get sucked into the Gox vortex of mistrust.

I really liked Mtgox on 2011/2012.I cant deny they were one of the first to provide API and other PHP codes to accept BTC.They really were useful for BTC to grow.
But what they did these last 12 months was worst cos it was when BTC neeeds real and serious entrepreneurs and investors.
As we may all know,Bitcoin (like any market) is very news sensitive.
So I think the sooner mtgox page is turned,the better it is for BTC.

Believe it or not, mtgox can easily get out of this mess.   It's its customer that will get burnt.


Just think about this.   No one can currently withdraw USD or Bitcoin from their mtgox accounts now and people are trying to sell their bitcoins at mtgox at a deep discount....  now, what if mtgox create a bunch of dummy accounts on their own exchange and buy up all these bitcoins for its customers at a deep discounts and pays for them with non withdrawable USD back to their customer's accounts?   Then come tomorrow, they announce they are not insolvent and have enough Bitcoins in reserve for everyone to withdraw?   Bitcoins in mtgox will now skyrocket as everyone with these non-withdrawable USDs in their account will have to pay a premium to buy their bitcoins back before and then withdraw them?   Buy low, sell high, suddenly, all of mtgox financial problem will go away.   The only people that will get burnt are their customers. 






 

It seems like this has been a long time coming for mt gox. I'd like to say they'd weather it, but honestly, their track record and all these issues say otherwise...

Nah, they collected so much fees after they decided to stop bitcoin withdrawal.

it just needs to die already. it's making bitcoin look bad. amatures that are into magic card games shouldn't get inolved in serious business with serious money.  it's a good thing we are weeding out the amatures now.

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

Mtgox can only run insolvent!


I see here and there people trying naively to send fiat to mtgox to take advantage of the situation and buy BTCs at a low price.
Those people should be thinking about it twice.
Mtgox is in trouble and been trying to hide it for almost one year now.
Here are some facts you should consider first:
-U.S. Department of Homeland Security had seized $2.9 million from Mt. Gox’s Dwolla account.
http://cdn.arstechnica.net/wp-content/uploads/2013/05/Mt-Gox-Dwolla-Warrant-5-14-13.pdf
-$2.1 seized in Mt. Gox’s Wells Fargo accounts.
Mtgox failed registration as a Money Service Business and has never recovered from that.
This was a personal involvement from MArk Karpeles and the seized account belongs to Sigum Mutulum,which is...mtgox...
-Coinlab has filed a 75 millions $ lawsuit against mtgox.
http://fr.scribd.com/doc/139160091/Coinlab-v-Mt-Gox
-Mtgox has been involved in Silk Road bust and I guess is still working with the feds on that side.
http://thegenesisblock.com/mt-gox-seizures-linked-silk-road-fed-testimonies/
-According to what is transaction malleability and how Silk road 2 got hacked,I really believe mtgox lost a lot of money before realizing.And knowing how They poorly managed their business,it's highly possible they only realized when they started running out of BTC.
I think they were losing BTCs since a long time ago but only found the breach these days.I can even imagine them suspecting the staff when they started missing BTC with no reasons...
On the legal side,Im sure mtgox had and is having a lot of issues with LE.
They are definetly involved with investigations centered on Silk Road,Bitinstant Transfers (Shrem's case) and Liberty Reserve.
Dont forget they were allowing to refund your account with Liberty Reserve (which was great for the young BTC currency at that time) with no verification.
Look at the last 12 months:Mtgox ran from an issue to another.Has always been lying or putting the blame on something else.
Plus,they have a bunch of money/BTC to pay back with lawsuits and seizures.They probably lost a lot of BTC with their poorly customized software too.
Do you really think Mtgox would tell you the truth?Or would give any real and serious answer?
So I think for all these facts,Mark Karpeles has been sinking mtgox ship and is already working on his new 3D company and his "bitcoin café".
I didnt find any reason they would resume their service and come back legit.
So please bear this in mind before sending your money to the Titanic...