Mt.Gox SCAM? $38million disappeared. Large sums affected. - page 6.

Artlover

full member

Activity: 149

Merit: 100

Quote from: indiekiduk on February 09, 2014, 09:30:22 PM

USD issues have been stopped while they are under investigation.

Uh, no.

USD withdrawals were stopped in June of 2013 because they were not registered in the USA as a money transferer. They filed the paper work, became registered and reopened USD withdrawals back in July of 2013. Except, it has never actually "worked", with some withdrawals taking upwards of 2+ months, many never getting them at all.

Interestingly enough, if you read MtGox's news on the matter, they used the excuse of increased volume/demand for why they shut down USD withdrawals in June while they made improvements to the system. I can't find anywhere on their website where they even mention their problems with the FED's and banking regulations in this country.

As far as investigations. Silkroad investigations were mostly last year and why the $5.5 million was seized from them in May of 2013. While I'm sure there still investigations going on, especially after the Charlie Sherm incident, that would not cause the shutdown of just USD withdrawls. Makes no sense anyways since much of Silkroad's business was tied to users (both buyers and sellers alike) in other countries besides the US. What it would (and DID) do is cause the funds in specific individual accounts suspected of being involved (everyone who used BitInstant) being locked (which seemed to effect AUD holders more then anything).

To get back to a previous point. They used the excuse of increased volume/demand. Where have I heard that before? They already have an established history of lying about reasons for what goes on there using the same old worn out excuses. I should believe them now why?

indiekiduk

newbie

Activity: 27

Merit: 0

Quote from: Artlover on February 09, 2014, 09:16:46 PM

Quote from: Test User on February 08, 2014, 08:00:04 AM

Here's a possible explanation as to the "technical" issues that MtGox has been suffering.

http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_chatter_about_what_is_going_on_at_mtgox/

In short, Mt Gox wrote their own custom wallet software, which only worked because of a bug in early versions of bitcoin. The bug was fixed in a recent release. This would cause transactions sent from Gox to fail.

A group of people, thinking that they were being helpful set up relay servers that would take the transactions from Gox, fix them to work around the bug, and then rebroadcast the fixed transactions. The transactions could reuse the same signature (as they were the same transaction), but would be allocated a new TxID.

A second bug in Gox's wallet meant that their wallet client only checked it's own TxIDs, and never scanned the blockchain for other TxIDs on its coins. As a result, it is possible that the wallet ran dry, but the actual wallet client didn't notice, and transactions would block because of attempted double-spend.

So if it's a general wallet issue, why are deposits still allowed?

What does this have to do with all the other issues. Like USD withdrawals not working for 8+ months and lost funds from other issues like crediting deposits before they cleared.

What does that have to do with all the new lost funds issues this excuse creates?

Where is their CEO?

Where is the money.

The last question is the big one. They claim they have it in cold storage across at least 6 different locations. Ok fine. So GO GET IT and do a wallet to wallet transfer so you can prove it to everyone via the block chain as they have willing done before when there were questions about their solvency, then put it back into cold storage. Is it that hard to go to these 6 places in question? Or are they still living in the 12th century over there and visiting the next village means loading up a caravan of horses for the 6 month trek across the mountains? No. Someone or a couple of people need to jump in their cars, drive across town, pull the BTC out of the vaults and show everyone they have it. They refuse to do it, instead spewing "Trust us!" Hahahahaha. Yeah, right. I haven't trusted you for the past 3 years, why in the hell would I start now!

It never ceases to amaze me just how many people are honestly willing to throw their heads in the sand and pretend like everything is under control. A playing card exchange that has been having legal and financial problems for a year now. USD withdrawals haven't been working right for 8+ months and had a manipulated exchange rate abnormally & unjustifiably higher then all the other exchanges. If that alone isn't enough to convince anyone to stay away, then you are fools.

Yet despite their long sorted history and on going troubles, people still keep trying to defend them, even as new problems keep appearing. And that is the fundamental problem with MtGox. Even if, by some chance, this is true, and this particular issue really is just a technical glitch, it's still just one of MANY problems to throw on the already heaping pile of problems they have/had. If your local fiat bank was having all these issues, you know damn well you wouldn't trust them or be making excuses for them. So why do it for MtGox?

Oh, I'm 100% sure their BTC withdrawals will be open Monday. They have been mining all weekend, so they can cover the smaller customers now. I'm also 100% sure those with large amounts will still be facing "technical glitches" when they to withdrawal, just as they have been for the past while now.

All the answers to your questions are in the reddit post.

The bug is in withdrawals not deposits.

USD issues have been stopped while they are under investigation.

For security reasons they can't just go and get the secured bit coins. The more people you tell the more risk they are at getting stolen. They probably tried quite hard to limit the number of people who know where they are. And just involving secure transport means even more people knowing. It probably would be a 2 week operation and quite expensive.

As for their CEO I don't know if anyone he met was the CEO, but he got the answers anyway.

We know the whole system was bits and pieces hacked together held together by a thin thread, just accept MtGox for what it is, I don't see any reason why it would shut down any time soon. If you've seen the software investment banks use then it would be less of a shock to you.

These sudden scare drops don't happen often anymore, take advantage and load up on discount coins. I'll be back over $1000 before you learn to say konichiwa

disclaimer201

legendary

Activity: 1526

Merit: 1001

Quote from: smoothie on February 09, 2014, 09:21:44 PM

Quote from: Artlover on February 09, 2014, 09:16:46 PM

Quote from: Test User on February 08, 2014, 08:00:04 AM

Here's a possible explanation as to the "technical" issues that MtGox has been suffering.

http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_chatter_about_what_is_going_on_at_mtgox/

In short, Mt Gox wrote their own custom wallet software, which only worked because of a bug in early versions of bitcoin. The bug was fixed in a recent release. This would cause transactions sent from Gox to fail.

A group of people, thinking that they were being helpful set up relay servers that would take the transactions from Gox, fix them to work around the bug, and then rebroadcast the fixed transactions. The transactions could reuse the same signature (as they were the same transaction), but would be allocated a new TxID.

A second bug in Gox's wallet meant that their wallet client only checked it's own TxIDs, and never scanned the blockchain for other TxIDs on its coins. As a result, it is possible that the wallet ran dry, but the actual wallet client didn't notice, and transactions would block because of attempted double-spend.

So if it's a general wallet issue, why are deposits still allowed?

What does this have to do with all the other issues. Like USD withdrawals not working for 8+ months and lost funds from other issues like crediting deposits before they cleared.

What does that have to do with all the new lost funds issues this excuse creates?

Where is their CEO?

Where is the money.

The last question is the big one. They claim they have it in cold storage across at least 6 different locations. Ok fine. So GO GET IT and do a wallet to wallet transfer so you can prove it to everyone via the block chain as they have willing done before when there were questions about their solvency, then put it back into cold storage. Is it that hard to go to these 6 places in question? Or are they still living in the 12th century over there and visiting the next village means loading up a caravan of horses for the 6 month trek across the mountains? No. Someone or a couple of people need to jump in their cars, drive across town, pull the BTC out of the vaults and show everyone they have it. They refuse to do it, instead spewing "Trust us!" Hahahahaha. Yeah, right. I haven't trusted you for the past 3 years, why in the hell would I start now!

It never ceases to amaze me just how many people are honestly willing to throw their heads in the sand and pretend like everything is under control. A playing card exchange that has been having legal and financial problems for a year now. USD withdrawals haven't been working right for 8+ months and had a manipulated exchange rate abnormally & unjustifiably higher then all the other exchanges. If that alone isn't enough to convince anyone to stay away, then you are fools.

Yet despite their long sorted history and on going troubles, people still keep trying to defend them, even as new problems keep appearing. And that is the fundamental problem with MtGox. Even if, by some chance, this is true, and this particular issue really is just a technical glitch, it's still just one of MANY problems to throw on the already heaping pile of problems they have/had. If your local fiat bank was having all these issues, you know damn well you wouldn't trust them or be making excuses for them. So why do it for MtGox?

Oh, I'm 100% sure their BTC withdrawals will be open Monday. They have been mining all weekend, so they can cover the smaller customers now. I'm also 100% sure those with large amounts will still be facing "technical glitches" when they to withdrawal, just as they have been for the past while now.

Bold portion is the best case scenario in my view. A run on their bitcoin wallet will happen if they ever open BTC withdrawals ever again. That in turn will raise the price on MTGOX and then those people will likely send it to another exchange and sell thus driving the price down.

Overall price is going down over the next 1-2 months. We may rally a bit due to influx of people wanting to withdrawal and some suckers on other exchanges may still follow MTGOX but in the end price is headed lower.

I'm a long term bull, but short-term bear currently.

Again I fully agree with smoothie, but I'm a bit worried these super whales on Btc-e will use any movement to manipulate the price in their favor in the meantime, meaning the downtrend might be broken by a few perhaps significant pumps, thus further delaying the overall downtrend a bit further. Btc will be fine in the long run, but short to mid-term down, or - if gox indeed fails - short term down significantly.

smoothie

legendary

Activity: 2492

Merit: 1473

LEALANA Bitcoin Grim Reaper

Quote from: Artlover on February 09, 2014, 09:16:46 PM

Quote from: Test User on February 08, 2014, 08:00:04 AM

Here's a possible explanation as to the "technical" issues that MtGox has been suffering.

http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_chatter_about_what_is_going_on_at_mtgox/

In short, Mt Gox wrote their own custom wallet software, which only worked because of a bug in early versions of bitcoin. The bug was fixed in a recent release. This would cause transactions sent from Gox to fail.

A group of people, thinking that they were being helpful set up relay servers that would take the transactions from Gox, fix them to work around the bug, and then rebroadcast the fixed transactions. The transactions could reuse the same signature (as they were the same transaction), but would be allocated a new TxID.

A second bug in Gox's wallet meant that their wallet client only checked it's own TxIDs, and never scanned the blockchain for other TxIDs on its coins. As a result, it is possible that the wallet ran dry, but the actual wallet client didn't notice, and transactions would block because of attempted double-spend.

So if it's a general wallet issue, why are deposits still allowed?

What does this have to do with all the other issues. Like USD withdrawals not working for 8+ months and lost funds from other issues like crediting deposits before they cleared.

What does that have to do with all the new lost funds issues this excuse creates?

Where is their CEO?

Where is the money.

The last question is the big one. They claim they have it in cold storage across at least 6 different locations. Ok fine. So GO GET IT and do a wallet to wallet transfer so you can prove it to everyone via the block chain as they have willing done before when there were questions about their solvency, then put it back into cold storage. Is it that hard to go to these 6 places in question? Or are they still living in the 12th century over there and visiting the next village means loading up a caravan of horses for the 6 month trek across the mountains? No. Someone or a couple of people need to jump in their cars, drive across town, pull the BTC out of the vaults and show everyone they have it. They refuse to do it, instead spewing "Trust us!" Hahahahaha. Yeah, right. I haven't trusted you for the past 3 years, why in the hell would I start now!

It never ceases to amaze me just how many people are honestly willing to throw their heads in the sand and pretend like everything is under control. A playing card exchange that has been having legal and financial problems for a year now. USD withdrawals haven't been working right for 8+ months and had a manipulated exchange rate abnormally & unjustifiably higher then all the other exchanges. If that alone isn't enough to convince anyone to stay away, then you are fools.

Yet despite their long sorted history and on going troubles, people still keep trying to defend them, even as new problems keep appearing. And that is the fundamental problem with MtGox. Even if, by some chance, this is true, and this particular issue really is just a technical glitch, it's still just one of MANY problems to throw on the already heaping pile of problems they have/had. If your local fiat bank was having all these issues, you know damn well you wouldn't trust them or be making excuses for them. So why do it for MtGox?

Oh, I'm 100% sure their BTC withdrawals will be open Monday. They have been mining all weekend, so they can cover the smaller customers now. I'm also 100% sure those with large amounts will still be facing "technical glitches" when they to withdrawal, just as they have been for the past while now.

Bold portion is the best case scenario in my view. A run on their bitcoin wallet will happen if they ever open BTC withdrawals ever again. That in turn will raise the price on MTGOX and then those people will likely send it to another exchange and sell thus driving the price down.

Overall price is going down over the next 1-2 months. We may rally a bit due to influx of people wanting to withdrawal and some suckers on other exchanges may still follow MTGOX but in the end price is headed lower.

I'm a long term bull, but short-term bear currently.

Artlover

full member

Activity: 149

Merit: 100

Quote from: Test User on February 08, 2014, 08:00:04 AM

Here's a possible explanation as to the "technical" issues that MtGox has been suffering.

http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_chatter_about_what_is_going_on_at_mtgox/

In short, Mt Gox wrote their own custom wallet software, which only worked because of a bug in early versions of bitcoin. The bug was fixed in a recent release. This would cause transactions sent from Gox to fail.

A group of people, thinking that they were being helpful set up relay servers that would take the transactions from Gox, fix them to work around the bug, and then rebroadcast the fixed transactions. The transactions could reuse the same signature (as they were the same transaction), but would be allocated a new TxID.

A second bug in Gox's wallet meant that their wallet client only checked it's own TxIDs, and never scanned the blockchain for other TxIDs on its coins. As a result, it is possible that the wallet ran dry, but the actual wallet client didn't notice, and transactions would block because of attempted double-spend.

So if it's a general wallet issue, why are deposits still allowed?

What does this have to do with all the other issues. Like USD withdrawals not working for 8+ months and lost funds from other issues like crediting deposits before they cleared.

What does that have to do with all the new lost funds issues this excuse creates?

Where is their CEO?

Where is the money.

The last question is the big one. They claim they have it in cold storage across at least 6 different locations. Ok fine. So GO GET IT and do a wallet to wallet transfer so you can prove it to everyone via the block chain as they have willing done before when there were questions about their solvency, then put it back into cold storage. Is it that hard to go to these 6 places in question? Or are they still living in the 12th century over there and visiting the next village means loading up a caravan of horses for the 6 month trek across the mountains? No. Someone or a couple of people need to jump in their cars, drive across town, pull the BTC out of the vaults and show everyone they have it. They refuse to do it, instead spewing "Trust us!" Hahahahaha. Yeah, right. I haven't trusted you for the past 3 years, why in the hell would I start now!

It never ceases to amaze me just how many people are honestly willing to throw their heads in the sand and pretend like everything is under control. A playing card exchange that has been having legal and financial problems for a year now. USD withdrawals haven't been working right for 8+ months and had a manipulated exchange rate abnormally & unjustifiably higher then all the other exchanges. If that alone isn't enough to convince anyone to stay away, then you are fools.

Yet despite their long sorted history and on going troubles, people still keep trying to defend them, even as new problems keep appearing. And that is the fundamental problem with MtGox. Even if, by some chance, this is true, and this particular issue really is just a technical glitch, it's still just one of MANY problems to throw on the already heaping pile of problems they have/had. If your local fiat bank was having all these issues, you know damn well you wouldn't trust them or be making excuses for them. So why do it for MtGox?

Oh, I'm 100% sure their BTC withdrawals will be open Monday. They have been mining all weekend, so they can cover the smaller customers now. I'm also 100% sure those with large amounts will still be facing "technical glitches" when they to withdrawal, just as they have been for the past while now.

P_Shep

legendary

Activity: 1795

Merit: 1198

This is not OK.

Another 5 dust payments has been sucked up by MtGox with no fee... gonna take a while for those to clear!

2double0

legendary

Activity: 2618

Merit: 1105

Quote from: CompNsci on February 08, 2014, 10:43:29 PM

Quote from: smoothrunnings on February 07, 2014, 08:24:18 AM

I think if this is the case and the banks and the governments are tying up their bank accounts it would be in the best of interest of MtGox to explain themselves as things could turn around more in their favor, instead of giving people their bullshit.

One of the biggest problems which Mt. Gox has, in addition to technical incompetence, is a lack of transparency about what is going on.

Several exchanges have this problem which prevents the adoption of bitcoins globally.

corsaro

legendary

Activity: 1400

Merit: 1000

Quote from: NutCoin on February 09, 2014, 11:22:54 AM

This is why you should never keep all your coin in one place in an emerging market like this.

Someone with industry experience needs to come in and lead the way - bitstamp.net seems like a good alternative.

bitstamp.net is excellent.

from my personal experience, both bitcoin deposits/withdawals and USD deposits/withdrawals are fast.

Normally from an eu country bank, they receive a usd deposit in 1-2 days, and you will receive a usd withdrawal from bitstamp bank to your bank in just 1-2 days

BitcoinREO

newbie

Activity: 5

Merit: 0

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NutCoin

newbie

Activity: 26

Merit: 0

This is why you should never keep all your coin in one place in an emerging market like this.

Someone with industry experience needs to come in and lead the way - bitstamp.net seems like a good alternative.

aesma

hero member

Activity: 2380

Merit: 916

fly or die

A bank run is scary because the bank can't pay everyone, so you want to be first in line. Gox should have all the money/coins, so even if 100% of users want to cash out, it should be possible without trouble. Of course, in practice cashing out has been almost impossible for months so I don't see how a bank run could happen, there is nowhere to run to or from ! The first in line have cashed out long ago.

igorr

sr. member

Activity: 406

Merit: 250

Countdown is begun,

Tokio/Japan GMT, 23:55
Peking/China GMT, 22:55

doom309

full member

Activity: 170

Merit: 102

Quote from: Revelations86 on February 08, 2014, 03:49:20 PM

Please have some common sense. These fraudsters plain out robbed people of $38 million because they knew they could get away with it. The only theft that occurred was an internal theft at their own hands. All the $$$ they were getting from the transaction fees and artificially manipulating the price of Bitcoin wasn't enough. Greed will be the downfall of this movement not the regulators.

Thankfully, as soon as I saw the $100 discrepancy between MT GOX and the rest of the exchanges back in December, I knew something was off and stayed the hell away from GOX.

mt goldman sachs

disclaimer201

legendary

Activity: 1526

Merit: 1001

Quote from: doom309 on February 08, 2014, 11:13:54 PM

ive never had my btc in gox, but im really feeling for those people stuck in there now, its tragic ... whats our wonderful bitcoin foundation saying about this Huh

anything ??

They are a waste of time.

doom309

full member

Activity: 170

Merit: 102

Quote from: gollum on February 08, 2014, 10:06:12 PM

Is it possible that MtGox is applying the classical "Fractional Reserver Banking" and they are experiencing their first "Bank Run"?

A theory:
They assumed most people won't withdraw their fiat or bitcoins, so they sold bitcoins they didn't have to their clients.
They maybe had 10-20% of all bitcoins they sold to clients, but they didn't expect the bitcoin price to rise so much and so quickly...
Maybe part of the huge rally from 200$ to 1200$ was due MtGox need to cover for all the bitcoins they sold but didnt have?

my thoughts exactly, historys first crypto bank run ...

the more things change the more they stay the same

central banking at its best

doom309

full member

Activity: 170

Merit: 102

ive never had my btc in gox, but im really feeling for those people stuck in there now, its tragic ... whats our wonderful bitcoin foundation saying about this Huh

anything ??

CompNsci

sr. member

Activity: 332

Merit: 253

Quote from: smoothrunnings on February 07, 2014, 08:24:18 AM

I think if this is the case and the banks and the governments are tying up their bank accounts it would be in the best of interest of MtGox to explain themselves as things could turn around more in their favor, instead of giving people their bullshit.

One of the biggest problems which Mt. Gox has, in addition to technical incompetence, is a lack of transparency about what is going on.

gollum

sr. member

Activity: 434

Merit: 250

In Hashrate We Trust!

Is it possible that MtGox is applying the classical "Fractional Reserver Banking" and they are experiencing their first "Bank Run"?

A theory:
They assumed most people won't withdraw their fiat or bitcoins, so they sold bitcoins they didn't have to their clients.
They maybe had 10-20% of all bitcoins they sold to clients, but they didn't expect the bitcoin price to rise so much and so quickly...
Maybe part of the huge rally from 200$ to 1200$ was due MtGox need to cover for all the bitcoins they sold but didnt have?

flipstyle

sr. member

Activity: 406

Merit: 250

I'm just pissed the coinbase asking rate has been stuck at 698 all damn day. Seems as though they're hedging quite a bit.

Give me btc at 650 and I'm a buyer!

P_Shep

legendary

Activity: 1795

Merit: 1198

This is not OK.

Something's going on...

My public address (that one down there), I put the private key into mtgox. I had my reasons, and the risk was small given that it rarely sees any funding!
Anyway, it's been collecting dust over the past year, really small amounts. Up until today they've just sat there. All of a sudden, today, this dust has been swept up by mxgox.

I find this interesting.

Topic: Mt.Gox SCAM? $38million disappeared. Large sums affected. - page 6. (Read 38105 times)