Topic: MT.GOX PRESS : Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals - page 2. (Read 6229 times)

What panic? I see no sign of panic.
Panic would be Bitcoin dropping to $50 or below.

I tried to warn everyone but got labeled as conspiracy theory. People claim BTC is immune to government, and the government loves us.

Told ya some day you'll wake up. Now the panic begins!

FYI

(Citibank refused transfer from Japan to Swizerland along the SWIFT path. Suggests US banks are on the offensive)
https://bitcointalksearch.org/topic/m.2540042

(MagicalTux saying that transfers are processed but capped at 1 million USD per day)
https://bitcointalksearch.org/topic/m.2540260

Yeah, I call BS on the reddit thread.
I think their accounts were closed / frozen because they were doing something else.

I saw such boom in last few hours of bitfloor life.

Anybody from Japan here? Or at least somebody knowing how to communicate with the banks right way? Maybe there is some way to investigate the situation from the other side - somehow asking Mizuho bank about the reasons of the problem?

That's an interesting and entirely plausible scenario IMO. They are probably still using an abacus at Gox for their accounts

No. Dwolla was only a tiny fraction, no significant amount, probably already earned back through trading fees multiple times.

My theory is this: There never was an API access for wire transfers in the first place, they did it **all** with paper, even for the ex dwolla useres who initiate massive numbers of small transfers every day and this ineffective process collapsed (probably the bank refused to hire more people only to process these massive amounts of paper and demand API usage instead) and now they are finally trying to write some code to connect it to the bank API.

I think that is close, but more likely, this:

Dwolla accounts seized -> MtGox loses access to most of their USD -> MtGox tries to cope but runs out of USD reserves -> people start complaining that their withdrawals are taking increasing amounts of time -> MtGox issues notice, USD withdrawals suspended (ie. we have no USD and are trying to organise more via investors or bank credit)

There has always been a spread of at least a few percent between bitstamp and gox.

That's assuming the spread would last 2 weeks.

I'll admit I took a 10% haircut.

As I have seen my mtgox wires get delayed longer and longer with absolutely no reason given, now this with nonsense Press Release

There is no way that a "broken API" would cause them to stop withdrawals completely for 2 weeks, they had previously said that the API was broken so they were processing withdrawals manually; and that's why the recent delays.

So if you have someone sitting there process withdrawals manually; why would you tell them to stop?  The logically thing to do would be to continue processing withdrawals manually/slowly while you wait for the bank to fix their API...if you are worried about all the delay complaints then put up a big notice in the withdrawals section about the delays

...why would you instead stop completely and "starting looking for new bank accounts"

Of course if in 2 weeks I'm proved wrong and Mt Gox opens back up their wire transfers I can always move my money back from Bitstamp to Mt Gox and probably gain back 5%, so only took a 5% haircut.

But I'm right that I have avoided a massive loss....which is why I choose to take the haircut...

IMHO the two most logical explanations:
1) They are having issues with their bank (legal/regulatory)
OR
2) They are insolvent fractional reserve.

Both of which have got me running.

I think their assumption is actually just that banks are benevolent and righteous and never wrong, so it must be Gox's fault and if they move the bitcoins anywhere else the banks are sure going to cooperate and process the withdrawals smoothly..........

They shouldn't be into Bitcoin anyway.

That would be too funny, and currently they would lose ~10% in the process. You have to understand that if you are buying on MtGox right now and selling at bitstamp, you are betting that they are going broke and willing to take that 10% haircut. If it turns out a day later or two that it was all unjustified panic created in a FUD environment that shitty PR made possible, well …

They did during April's bubble so I think they'll do now.

This is just perfect. Just moved some coins from bitstamp bought cheaply to mtgox tried to sell. Looks like will have to sell them at coinbase

IMH opinion (totally unfounded tale of FUD)

I remember that Karpeles said in an interview during the bubble something about getting 20Mil USD deposits per day, and 300K withdrawals a day.

Gox started to think "this is the way it's going to be now" and started to spend more than their fees...sliding into a factional reserve, with their position getting deeper and deeper; new servers, new lawyers, new boats, lots of coke etc...with 20Mil a day coming in who gives a crap ("we're rich bitch")

But then the market turns...uh oh, people are now selling their bitcoins and withdrawing, people are withdrawing to other exchanges....  Now it's flipped... 20Mil going out per day, and only 300K coming in.

At first they delay the transactions hope they can ride it out...but what do you do when the balance hits 0 and delays are getting longer?

Their story that their banks API is broken (for 2 weeks) is laughable.  Yup you broke the bank, but not the API.

Also I love how in their press release they try to say:

To try to make it seem like it's only a small number of customers that are effected (only the people the US)....when 90% of your customer accounts are denominated in USD (not just US customers)

you think they will be able to handle the huge amounts of withdrawal about to be requested?

we'll see

Panic bought  I'll take my BTC and be the f*** out thx...see you in 2 weeks.

Really? I've seen plenty of people mentioning they'd had wires take 2-3 days, and generally much faster than mtgox.