Topic: Mt.Gox SCAM? $38million disappeared. Large sums affected. - page 7. (Read 38202 times)
Why would they keep their API up through this if they did not want the price to fall?
Does anyone even use mtgox anymore besides newbs?
I thought it was already well known among crypto enthusiasts to not trust mtgox?
I thought it was already well known among crypto enthusiasts to not trust mtgox?
“I think just witnessed Mt Gox die today. I didn’t get my bitcoin, but glad I came and tried.” - Reddit user ‘CoinSearcher’, after conducting a three-day protest at Mt. Gox’s headquarters in Tokyo.
This is the best article I could find that explains it in detail. http://www.coindesk.com/mt-gox-first-bitcoin-exchange-dead/
This is the best article I could find that explains it in detail. http://www.coindesk.com/mt-gox-first-bitcoin-exchange-dead/
The only good thing about this situation is that now Mtgox is the most secure wallet in the world, in fact it is 100%impossible for an hacker to take your money from your gox wallet.
I think I am going to put all of my btc on gox right now, I love such a level of security.
I think I am going to put all of my btc on gox right now, I love such a level of security.
Just delete the private keys and save yourself the trouble.
Apparently, $38million of clients' money has disappeared from mtgox. Was mtgox hacked? Or did they steal the money to keep themselves afloat?
Source :: http://falkvinge.net/2014/02/04/major-bitcoin-exchange-not-executing-withdrawals-now-owes-clients-38m-in-disappeared-money/
Mtgox support has agreed to this and say this affected only the larger transactions (ofc it did).
Mtgox support reply :: https://support.mtgox.com/entries/26128504-Update-Statement-Regarding-BTC-Withdrawal-Delays
Mtgox better come clean about this soon or the BTC price is gonna keep doing down. Fell $100 in just the past 3 hours.
New Press Release from Mtgox (dated 7th Feb 2014) :: https://www.mtgox.com/press_release_20140207.html
Mtgox has officially stopped all withdrawals. This is not looking good. So we got all our money stuck at a japanese exchange now
Source :: http://falkvinge.net/2014/02/04/major-bitcoin-exchange-not-executing-withdrawals-now-owes-clients-38m-in-disappeared-money/
Mtgox support has agreed to this and say this affected only the larger transactions (ofc it did).
Mtgox support reply :: https://support.mtgox.com/entries/26128504-Update-Statement-Regarding-BTC-Withdrawal-Delays
Mtgox better come clean about this soon or the BTC price is gonna keep doing down. Fell $100 in just the past 3 hours.
New Press Release from Mtgox (dated 7th Feb 2014) :: https://www.mtgox.com/press_release_20140207.html
Mtgox has officially stopped all withdrawals. This is not looking good. So we got all our money stuck at a japanese exchange now
Is that the reason bitcoin droped so much ?
To me, it doesn't make much sense that MtGox is actually insolvent and ran out of BTC. If they are truly spending customers' funds, what is the point? Did they really think this could continue indefinitely? I just don't believe they are so foolish to use all customers' BTC.
The only logical scenario I can think of to justify their spending is that they lost so much money from the government investigation, they were forced to dip into BTC funds in order to pay their fiat debts. Because BTC prices on their site became so much higher, the amount of people actually depositing fiat continued to decrease. Why would someone put their fiat on Gox to buy BTC at 15-20% higher rates than Bitstamp?
It's still a bizarre situation. If this company was truly able to go bankrupt, it means they acted extremely unethically. Based on the fees accumulated and low overhead costs involved in such an organization, there is no justifiable reason for them not backing the deposits on their service. There is no justifiable reason that Mt. Gox should have anything less than 100% reserve of every single user's deposits on hand.
The only logical scenario I can think of to justify their spending is that they lost so much money from the government investigation, they were forced to dip into BTC funds in order to pay their fiat debts. Because BTC prices on their site became so much higher, the amount of people actually depositing fiat continued to decrease. Why would someone put their fiat on Gox to buy BTC at 15-20% higher rates than Bitstamp?
It's still a bizarre situation. If this company was truly able to go bankrupt, it means they acted extremely unethically. Based on the fees accumulated and low overhead costs involved in such an organization, there is no justifiable reason for them not backing the deposits on their service. There is no justifiable reason that Mt. Gox should have anything less than 100% reserve of every single user's deposits on hand.
Perhaps they're hoping bitcoin finds a bottom this weekend thus insuring fewer customers will make a run on the MtGox wallet when withdrawals are re-enabled on monday.
Damn this is why BTC value is dropping...
Why now??? I know I'm just starting a big invest in mining material...
I really have no luck with timing.
It will go back up. The problem is not bitcoin itself but one of the exchanges. People selling now are mostly those running away from gox. They want to switch to fiat so in case Gox goes to hell they can at least sue them for currency theft. Whatever happens to Gox the price will recover eventually, the investors will just move to other exchanges.Why now??? I know I'm just starting a big invest in mining material...
I really have no luck with timing.
If Gox does go down it would make the mainstream media news first and that would throw back adoption for months to say the least. This is why the price is already going down right now.
As much as I dislike Mt. Gox for their serial incompetence and communication failures, they’re not insolvent or frauds. No evidence of that
A whole community speculating over what is going on over the weekend is not doing mtgox or the Bitcoin exchange rate any good... They really should release more progress reports if they want to regain some trust - even if they get it up Monday and are ready for a bezillion withdrawals.
As much as I dislike Mt. Gox for their serial incompetence and communication failures, they’re not insolvent or frauds. No evidence of that
Good News! You are probably wrong. 
It's a technical issue they are not stealing that much money.
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 $$$ they were getting from the transaction fees and artificially manipulating the price of Bitcoin wasn't enough. Greed will be the downfall of this movement not the regulators.
Thankfully, as soon as I saw the $100 discrepancy between MT GOX and the rest of the exchanges back in December, I knew something was off and stayed the hell away from GOX.
Thankfully, as soon as I saw the $100 discrepancy between MT GOX and the rest of the exchanges back in December, I knew something was off and stayed the hell away from GOX.
It's a technical issue they are not stealing that much money.
Please have some common sense. These fraudsters plain out robbed people of $38 million because they knew they could get away with it. The only theft that occurred was an internal theft at their own hands. All the $$$ 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.
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.
Damn this is why BTC value is dropping...
Why now??? I know I'm just starting a big invest in mining material...
I really have no luck with timing.
It will go back up. The problem is not bitcoin itself but one of the exchanges. People selling now are mostly those running away from gox. They want to switch to fiat so in case Gox goes to hell they can at least sue them for currency theft. Whatever happens to Gox the price will recover eventually, the investors will just move to other exchanges. Why now??? I know I'm just starting a big invest in mining material...
I really have no luck with timing.
mtgox is dead. NO withdrawals for both fiat and bitcoins.
I would gladly sell my bitcoins on mtgox for 85% its current value if anyone is interested.
i offer 10% I would gladly sell my bitcoins on mtgox for 85% its current value if anyone is interested.
mtgox is dead. NO withdrawals for both fiat and bitcoins.
I would gladly sell my bitcoins on mtgox for 70% its current value if anyone is interested.
I would gladly sell my bitcoins on mtgox for 70% its current value if anyone is interested.
^^And that's why the price is dropping like crazy.
I wonder if people have started selling off their Gox accounts for 50% to people who still trust them. Personally I think that'd be a good gamble. Not interested in actually doing it though
mtgox is dead. NO withdrawals for both fiat and bitcoins.
I would gladly sell my bitcoins on mtgox for 85% its current value if anyone is interested.
I would gladly sell my bitcoins on mtgox for 85% its current value if anyone is interested.
The only good thing about this situation is that now Mtgox is the most secure wallet in the world, in fact it is 100%impossible for an hacker to take your money from your gox wallet.
I think I am going to put all of my btc on gox right now, I love such a level of security.
I think I am going to put all of my btc on gox right now, I love such a level of security.
Not that secure if they already stole the coins
The only good thing about this situation is that now Mtgox is the most secure wallet in the world, in fact it is 100%impossible for an hacker to take your money from your gox wallet.
I think I am going to put all of my btc on gox right now, I love such a level of security.
I think I am going to put all of my btc on gox right now, I love such a level of security.
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.
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.
Yeah, even though Gox will have a hard time regaining the trust lost over the past months, I'm at 70-80% that this issue is indeed mostly a technical one. It seems plausible - though the resulting chaos might turn a stumble into a fall.
Also the "simple" explanation seems to be that transactions with multiple inputs are more likely to run into a double-spend and not being relayed to the blockchain. It's kinda obvious if this is what's going on - when a 1BTC withdrawal from Gox draws from 50 addresses it is much more likely that the withdrawal will fail due to one of the inputs already used on the blockchain. This doesn't mean Gox doesn't have 1BTC - it just means Gox doesn't have 1BTC on the address it thought it did.
I just don't get why they haven't unforked their crappy spinoff yet. It'll cost them millions in bad PR.
When under pressure it's always better to use something tested as the core and build on top of that. In IS development it is ALWAYS better and cheaper to do it right the first time around.
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.
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.
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