here is what mark says to you:
@ EvilPanda
of course! cheap coins
@ EvilPanda
of course! cheap coins
Topic: MTGox lost 750K Bitcoins? (Read 10552 times)
I call bullshit. Even though Mt. Gox was grossly incompetent, it's hard to believe that they didn't have very basic accounting practices in place to catch this sort of issue.
Surely someone did audits and helped them do their taxes every year
Surely someone did audits and helped them do their taxes every year
So, I take it that you're of the mind that Bernie Madoff did his own taxes, and that Ken Lay and Jeffrey Skilling did Enron's taxes? Or that Henry, Emanuel, & Mayer Lehman would be doing their taxes? Arthur Andersen anyone? Ernst and Young? KPMG?
Financial regulation does not prevent financial fraud, or even slow it down. If you are willing to lie, you lie to your clients, you lie to your auditors, and you lie to whoever thinks they are regulating you. Then, you watch how often those that think they are regulating you decline to prosecute.
"Ja, Emanuel, I vas villing to lie und break zese 98 laws, to make zeven billion, but I vill not break 102 laws. ZAT iz unacceptable!!!"
Get real, fools.
I call bullshit. Even though Mt. Gox was grossly incompetent, it's hard to believe that they didn't have very basic accounting practices in place to catch this sort of issue.
Surely someone did audits and helped them do their taxes every year
Surely someone did audits and helped them do their taxes every year
I think they did have accounting controls.
The real problem which they are not admitting is that they sold virtual BTC and the price exploded in their faces.
They have not been able to cover the short fall since early 2013.
I call bullshit. Even though Mt. Gox was grossly incompetent, it's hard to believe that they didn't have very basic accounting practices in place to catch this sort of issue.
Surely someone did audits and helped them do their taxes every year
Surely someone did audits and helped them do their taxes every year
http://www.businessinsider.com/reports-mtgox-halts-all-trading-2014-2
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
Only if they were lost and not stolen. If they were stolen, they've likely been being sold over the past months or years and are still in circulation.
A rather interesting question is whether the failure of MtGox to maintain proper accounting measures rises to the level of negligence. I sure as hell wouldn't like to be the person explaining to whoever investigates corporate failures in Japan exactly why their accounting systems were so woefully inadequate.
As far as I know, the Japanese have chosen not to regulate bitcoin (rightfully so), so that may not be an issue at all.
Fraud or theft? That's another story of course. 8^]
I remain skeptical about its authenticity for many reasons, not least of all because it reads like something put together by a complete amateur.
Well, right. That is precisely the issue. A "complete amateur" is a term that applies well to Mt. Gox. They made it this far in spite of themselves.
If you notice, it also says that cold storage got wiped out due to a leak in the hot wallet. That can't be explained by transaction malleability alone. Something had to be very, very wrong with MtGox's accounting procedures for them not to realise that they had paid out more than they should have over such a long period of time.
But why would that be surprising? Something is often very wrong with very large and sophisticated companies' accounting; however, they are large enough to handle the corrections and writeoffs that often ensue.
Given what I know about Mt. Gox and its founder, no surprise there at all. Especially given the short time it has existed.
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
not exactly.
"virtual BTC" generated by the incompetent mtgox is gone ... it's the 744k BTC.
Agree. I don't think any BTC was lost. This was "virtual BTC" that Mt.Gox sold to their customers.
Mt.Gox owes them real BTC.
I doubt that there will be any company that will takeover Mt.Gox and take this liability.
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
not exactly.
"virtual BTC" generated by the incompetent mtgox is gone ... it's the 744k BTC.
I heard about 4000BTC
but I must say I do not care about MtGox at all.
Still quite a bit. This means people who had some of that won't get their btc :-/
http://www.businessinsider.com/reports-mtgox-halts-all-trading-2014-2
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
Bullish for BTC!
http://www.businessinsider.com/reports-mtgox-halts-all-trading-2014-2
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
at least 744,408 BTC — about 6% of all coins in existence — are now out of circulation
Mt gox is dead. 
Sounds like bullshit
They just mentioned this on CNBC.
That's like how they were blaming transaction malleability. I mean, after like the 3rd time in a week someone says "hey you never sent me the 100 btc", you might think they'd check into it more carefully.
no 750k bitcoins lost from Mt.gox, Mt.gox still use cold storage strategy, but only half of its bitcions, so lose bitcoin number is less than 220k bitcoins, please never enlarge the rumor.
If it's a small team all of whom 'know' that they are making shed loads of profit, then perhaps they didn't do the obvious checks. That takes a staggering amount of incompetence though and does tempt conspiracy theories, because surely people are not that stupid.. so it 'must be' deliberate.
Were they stolen and still could be in circulation?
If the background to that rumour is true and its been actioned over a long period, then it's likely the perp sold the coins as they aquired them. That is, they're not sat there holding 750k BTC but rather the price over the last few years has been depressed by those being sold. The theft then only becomes obvious now and those who thought they had coins on MtGox didn't really hold anything (flashes of fiat reality in my head), coupled with that all holders of BTC who've been spending in the real world on product or back out to fiat, have lost money to those theiving.
Which then is a good sign perhaps that the appitite for Bitcoins was sufficient to absorb that amount and still show a healthy rise. We'll have to wait and see now, if then the price of coins avaliable without MtGox interference, suggests there really is more demand than easy forged supply.
If the coins were stolen, I believe it would have to have been done in a situation like you just described. What I can't understand is the stupidity involved. In order for this to happen all the way until you have only a couple thousand BTC left to your company's name, you have to be completely and utterly incompetent not for weeks or months, but for years on end. You would have to never ever realize that "hey I am bleeding money and not making any." They have to be almost impossibly stupid for this to happen. I don't know if we will ever get the full picture.
This is obviously BS, Bitcoin is an electronic currency. You can find out in micro-seconds how much coins are in your wallets. To lose 750K Bitcoins over a long period and not know about it is really difficult to believe. What is beliveable is Mt.Gox sold 750K of BTC that they never had. Any auditing firm can find this out.
https://blockchain.info/address/1Drt3c8pSdrkyjuBiwVcSSixZwQtMZ3Tew
No. Transactions 623
Total Received 782,558.72529011 BTC
No. Transactions 623
Total Received 782,558.72529011 BTC
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