Topic: MTGOX has not paid us since 26th of June! - page 2. (Read 10937 times)

Mt Gox undoubtedly has reserves of both USD and ฿. This starts to get real ugly when a critical amount of customers attempt to take ฿ off the exchange and further erode liquidity. This can only go on for so long, the next four weeks will be telling.


 

Let's hope they still have the Bitcoinica funds in reserve.

All right, probably not tens of millions.

Still, $4.5M + over 50kBTC is a lot of money. Don't forget the BTC-denominated fees. And they might have a lots of BTC left over from earlier too.

This. My back-of-the-envelope calculation says they will lose money if their trade volume stays under $1M per day, however. They've had to scale up their business because of the crazy volumes at the height of the April bubble, and they managed to catch the attention of the banking circles. Now they're trapped between no bank wanting to do business with them and fairly high operating costs. I'd hazard a guess that their op costs (including wages) are several hundred thousand dollars monthly.

Even if they lose money it's going to take some time to burn through the insane amounts they made during the bubble. They probably have tens of millions in reserve.

This is the most logical explanation I have seen yet.  Indeed, anyone who leaves $ or bitcoin in gox right now is accepting enormous risk.

was able to get my USD converted back to BTC and off of gox.  goodbye gox.

I don't think they are broke, I think they are being blacklisted by the fiat banking system because of US regulatory pressure due to the FinCen investigation (which was probably from a tip-off because of the failed merger and $75m lawsuit).

Some banks are still begrudgingly doing business with them on a low-volume basis treating MtGox with the caution normally reserved for Iranian mullahs, Nigerian finance houses and Colombian plantation owners.

How can you become broke when you were handling 80% of all Bitcoin transaction?
They were making millions in profit.

That's not what Mt. Gox is saying.

Mt. Gox has a track record of blaming others for their own screwups. If they could blame some bank for their current problems, they probably would.

It's much more likely that they're simply broke.

My current theory is that they have their main account frozen and this is why they changed the bank account details for deposits recently.  What is deposited into the new account they use for paying someone from the withdrawals queue - but the queue is only growing anyway.

The question is why their account got frozen - I don't know - maybe it was just some bureaucratic failure (like that one when Karpeles declared MtGox noto be a a money transmitter in the USA) - or maybe it is some lawsuit (maybe even it is the effect of MtGox not releasing the Bitcoinica funds to the debtors).

I don't know if they are solvent or not, but the idea that they are insolvent in USD but solvent in BTC makes no sense.

Those are the actions of a company that's broke and is desperately trying to delay the inevitable. As the SEC says on their Ponzi scheme page: "Be suspicious if you don’t receive a payment or have difficulty cashing out your investment." That's a huge red flag.

Agreed.


For any of you who have fiat currently being held with MtGox, I ask you to take a few minutes out of your day right now to run through this quick thought experiment with me. Honestly, we'll do it together right now:

1. Mt Gox has been hammered with DHS account seizure, Coinlab lawsuit as well as a host of other external and internal banking, hardware and software related issues. All of this is public information, the only question that remains is the current impact from the banking issues which triggered this Spring.


2. Mt Gox has had plans to implement alternative crypto currencies since April of this year. The amount of work required to implement another order book, make some UI and database changes is relatively simple and quick. Since we know Mt Gox has gone one step further and introduced Midas, we can add another 2-4 weeks for integration / load / compatibility testing. We are now at August 8th, 2013 with no timetable for any alternative currencies being added.

There is no logical explanation why Mt Gox would require 4.5 months and counting to add and fully support another currency pair, even if that pairing has fiat on one side. The amount of money to be earned in trading fees based on volume would be enough to create a financial incentive to add Litecoin and Namecoin ages ago. If there was another legitimate reason for 4.5 months delay on this, they would have made a 10-minute Flash video in hopes of stemming the bleeding market share. 


3. Now we have 3+ month long delays in USD withdrawals. As anger and speculation grows while market share continues to bleed, Mt Gox says little to nothing on the issue. At the start of this month. Mt Gox releases a statement containing several key updates. The biggest update is of course the ever-growing withdrawal issue. Because Mt Gox has made this point so clearly for me, I will let them finish off my point on their deposit and withdrawal situation:


Deposits and Withdrawal Update

Finally, the issues with deposits and withdrawals from Mt. Gox are being relieved, but still not at the rate we want. For example it currently takes up to 10 days to process a deposit because our bank, upon receiving deposits, notifies us of the deposit but holds them for 7~10 days before transferring them to our account. This has always been the case, and we were still crediting customer accounts before receiving the funds ourselves, but some cases in which the bank subsequently rejected the deposits meant that we incurred significant losses. The risk is now too high for us to credit accounts prematurely. We are in the process of forming relationships with new partners, banks, and taking other steps -- hopefully we will not only be back where we were before we encountered these issues , but much further ahead.


After month over month of increasing market share loss, Mt Gox sat down in the board room and decided what they would say about USD withdrawals, and how they would say it to you. This is what they came up with.

Now, to wrap up this thought experiment. After taking all of these factual points into your consideration, do you believe Mt Gox is solvent? Are these the actions of a company that has made a concious decision to stay in business and grow their customer base?  Be honest with yourself, it may save you some money and ฿.

they probably got some kind of warning,
applied for permits and now we are all waiting for that permit(s),

they don't want to make any sending action because that would make them look like money transmitters

There is no excuse to continue using Mtgox unless you need to cash out over 100k

i've been waiting since. 14th of june.  the last WD i got was june 03, so between June third and 13th is when the issue arose.  i just hope i can get my USD refunded and turned back into coins. royally goxxed.

basically i paid a fee to have my coins converted to USD. now i'll have to pay another fee to get my USD converted back to BTC, and when i get the coins onto another exchange i'll pay another fee to get the btc back to USD.  thanks a lot gox. there should be a way to cancel the original sales, because if i knew they were going to defraud my $$ it would have saved me a lot of time and money.

Yep.  This is what has been the problem since withdraw freezes were first announced.  There isn't a problem with their bank in Japan, there is a problem with US banks refusing to work with Gox, which cannot be solved "in 2 weeks."

Pretty much everyone.

Still another day of nothing.

This is completely unacceptable.