Topic: Mtgox manipulation, problems and its effect on the Bitcoin economy (Read 636 times)

So before I start pointing out how MTgox screwed up big time, I will first point out that they take some credit for bringing Bitcoin at what it is at today, but this cant be simply an excuse for screwing the whole community.

Let us focus only on the events that happened in 2013-2014, we wont mention the hacks and all events from 2010-2012, so:


1- Mtgox problems started early 2013 (Q1), their First Big problem was their horrible engine, it did experience lags of days and weeks without any exaggeration, some people couldn't cancel orders, many people took big losses, that is when they halted the trading for a calm down period.
2- The next Problem was their accounts in the US being seized after not being registered as a money transmitter, they worked all the time without a licence.
3- OKpay and other partners halted Withdrawals/deposits and stopped working with them.
4- Fiat withdrawal limitations due to their "bank limit".
5- BTC withdrawal problems.
6- the list can go on shitty support, not being prepared for Ddos attacks, awful communication....


I would like to point out few things, beside their engine being screwed and their custom wallet which couldn't handle the malleability shows that they really suck at IT architecture, or they don't even have an IT system Architect and proves again that an exchange of that size did run unprofessionally by few guys that were not prepared for Bitcoin success, when Bitcoin community was dramatically growing they didn't consider taking their exchange to the next step and hire more people and professionals to deal with the situation.

but the most thing that annoys me, and I cant figure it out or understand it, or at least the information that they disclosure doesn't seem to sum up with their story, they are having a FIAT "withdrawal limits" from their bank!?? so I know about few companies here in which had similar problems with their bank, they solved it in a simple way, first open a new bank account with another bank and you can discuss terms in advance, I am sure many banks will want that piece of the pie and when you do, secondly you go to your actual bank and ask for account closure, they cant tell you no and they must send your funds into the new bank account.

I cant imagine what could cause the FIAT withdrawal delays, well one scenario is that they don't have the funds and they are running a ponzi scheme, in which they pay old customers with new incoming money and from the trading fee they earn...


and now the BTC withdrawals, I wont comment yet on that, but I have a feeling that it will be the same like FIAT withdrawals....



Mtgox, is taking the whole community as fools, and they are not effecting only their customers but the whole community is going down with them.