This is like making a run on a bank.
The US litigation and enforcement actions ignited this, but MtGox may get through it yet.
Unless there is a full out run AND their legal liabilities overtake their aggregate profit.
I hope they do prevail, if only for the story of perseverance it would engender once Hollywood gets a hold of it.
Topic: MtGox withdrawal delays [Gathering] - page 268. (Read 908613 times)
I made a withdraw via SWIFT on the 6 of August. Still didnt got the funds....answer from support:
" Currently, we are processing International wire transfers manually and have a huge backlog of withdrawals to be cleared. We are in the process of forming relationships with new partners, banks, and taking other steps to clear the backlog. We are expecting the withdrawals to be cleared soon. We will let you know once the withdrawal is processed. Sorry for the inconvenience caused."
" Currently, we are processing International wire transfers manually and have a huge backlog of withdrawals to be cleared. We are in the process of forming relationships with new partners, banks, and taking other steps to clear the backlog. We are expecting the withdrawals to be cleared soon. We will let you know once the withdrawal is processed. Sorry for the inconvenience caused."
I have the same "Invalid bitcoin address, please confirm your input" when trying to withdraw BTC.
The EURO withdraw I did on 16-SEP has also still not arrived.
Why does MtGox suck so much. Why cant they cooperate with 1 bank in every major country in Europe for SEPA payments?
The EURO withdraw I did on 16-SEP has also still not arrived.
Why does MtGox suck so much. Why cant they cooperate with 1 bank in every major country in Europe for SEPA payments?
"Invalid bitcoin address, please confirm your input".
I have it too. What I think will happen:1. few hours of broken btc withdrawals
2. 5k buy at mtgox driving price @142
3. withdrawals unlocked
thats funny, I just went to withdraw whatever was left (just a tiny tiny amount) and I got the same thing: "Invalid bitcoin address, please confirm your input".
However my balance had changed at the same time, so I'm not sure if the withdraw went through or not. I'll report back.
EDIT: Looks like it sent.
mtgox's reply to my btc withdrawal problem ticket...........
Hello,
Thank you for contacting us. It appears the error is triggered from the platform for few BTC withdrawals specially, we are currently investigating on the cause and the solution. However please drop a line if you were able to withdraw after a while. We appreciate your patience and sincere apologies for the inconveniences caused.
Best regards,
Mt.Gox Team
Hello,
Thank you for contacting us. It appears the error is triggered from the platform for few BTC withdrawals specially, we are currently investigating on the cause and the solution. However please drop a line if you were able to withdraw after a while. We appreciate your patience and sincere apologies for the inconveniences caused.
Best regards,
Mt.Gox Team
1 of 10 withdrawal attempts from MtGox bounces due to wrong information (wrong account number, wrong owner, wrong SWIFT address, etc), and all of the bounces have to be handled manually by their bank. This is what overloaded their old bank. They will have to work slowly through the queue to avoid too much work at once, but hopefully at a much faster pace.
This is exactly what I call a lame excuse. It sounds ridiculous for anyone who knows how a modern bank works. I can hardly imagine that you can “overwhelm” a bank with wire transfers. Actually, this is the way the banks make money. It is as mtgox would not let you trade because you overload their system with you trades. 
Bitstamp's USD volume is unknown. They only pubslish their total volume and label it as USD.
They only support USD.
regardless of the reasons, mtgox is not addressing the issue in the right way. they are just hiding the truth giving us lame excuses - this is very dissapointing.
I think the fact that JPY domestic transfers started appearing from a new bank (as reported by someone else in this thread) is a sign of progress. It means they actually have at least one new banking partner. I doubt the queue will get handled very quickly by the new bank. 1 of 10 withdrawal attempts from MtGox bounces due to wrong information (wrong account number, wrong owner, wrong SWIFT address, etc), and all of the bounces have to be handled manually by their bank. This is what overloaded their old bank. They will have to work slowly through the queue to avoid too much work at once, but hopefully at a much faster pace. I hope people will report here when their transfers from June start arriving.On the other hand the SEPA volume has exploded, and there are still withdrawals in queue as far back as August 31st. :-(
mtgox is getting creative - "There was a database error while processing your request"
still no luck for me - will submit a ticket
I got this error too. I cancelled my two SEPA withdrawals after not
receiving status changes for 3 weeks. Now I cannot withdraw BTC.
I just contacted the Mt.Gox support on this issue, and will act
on their response.
Edit 1:Kept trying, now I receive the normal messages when
withdrawing.
Edit 2:It took a couple of hours for the last transaction to be
broadcasted, but now everything is visible in the blockchain.
receiving status changes for 3 weeks. Now I cannot withdraw BTC.
I just contacted the Mt.Gox support on this issue, and will act
on their response.
Edit 1:Kept trying, now I receive the normal messages when
withdrawing.
Edit 2:It took a couple of hours for the last transaction to be
broadcasted, but now everything is visible in the blockchain.
"Invalid bitcoin address, please confirm your input".
I have it too. What I think will happen:1. few hours of broken btc withdrawals
2. 5k buy at mtgox driving price @142
3. withdrawals unlocked
regardless of the reasons, mtgox is not addressing the issue in the right way. they are just hiding the truth giving us lame excuses - this is very dissapointing.
even if they have a liqudity problem they can borrow money to fix it, it is a valid option for a profitable business.
I gave up trying to withdraw USD, bought back btc but can't withdraw them so far....it throws a stupid error -"Invalid bitcoin address, please confirm your input".
even if they have a liqudity problem they can borrow money to fix it, it is a valid option for a profitable business.
I gave up trying to withdraw USD, bought back btc but can't withdraw them so far....it throws a stupid error -"Invalid bitcoin address, please confirm your input".
We will have to agree to disagree then. In my book, a $10M hole for a young and relatively small company as MtGox is a huge hole. Pretending its "peanuts" is being in denial of the facts. You repeat they have "millions on the order book", which obviously doesn't change the fact that a part of that money, credited to customers balances, is very probably not backed up by fiat in their banks, as they are obviously short of $10M. In fact, they pretty much admit it:
So they they are admitting they have a big hole, and they do not say anywhere that they had to cover the hole with their own money (I would have stated that clearly in the official document, to wipe out doubt about insolvency - wouldn't have you?). The only hard cold fact they are stating is "such customers' MtGox account reflected a higher amount of currency funds available to such customers than were actually in the MtGox bank account".
We have, from the same source, a number for their profit between April and August 20th. 8 million USD. + 12 million visible bids in the order book + whatever is in the withdrawal queue + funds not in the order book + profit since August 20th (about 500k by my estimates, counting the 2.5% mixed currency conversion fee as income). That is a lot of money. I can only see 1.5 million possibly missing from the total, and that can not possibly explain any current withdrawal problems. The numbers just don't add up to anything resembling a problem. They have a few hundred thousands of BTC as well.Quote
Defendants are informed and believe that in March and April, 2013 MtGox customers, at the
suggestion of CoinLab, deposited $12,788,701.08 into one or more CoinLab bank accounts;
CoinLab then caused the amount of such funds to be credited to such customers' MtGox
accounts but CoinLab did not transfer the actual funds into the MtGox bank account. As a
result, such customers' MtGox account reflected a higher amount of currency funds available
to such customers than were actually in the MtGox bank account. In April, 2013, and upon
the demand of MtGox, CoinLab transferred a portion of those amounts, $ 7,473,490.29, to the
MtGox bank account, leaving a balance of approximately $ 5,315,210.79 to be transferred to
the MtGox account and which is being wrongfully held by CoinLab.
suggestion of CoinLab, deposited $12,788,701.08 into one or more CoinLab bank accounts;
CoinLab then caused the amount of such funds to be credited to such customers' MtGox
accounts but CoinLab did not transfer the actual funds into the MtGox bank account. As a
result, such customers' MtGox account reflected a higher amount of currency funds available
to such customers than were actually in the MtGox bank account. In April, 2013, and upon
the demand of MtGox, CoinLab transferred a portion of those amounts, $ 7,473,490.29, to the
MtGox bank account, leaving a balance of approximately $ 5,315,210.79 to be transferred to
the MtGox account and which is being wrongfully held by CoinLab.
So they they are admitting they have a big hole, and they do not say anywhere that they had to cover the hole with their own money (I would have stated that clearly in the official document, to wipe out doubt about insolvency - wouldn't have you?). The only hard cold fact they are stating is "such customers' MtGox account reflected a higher amount of currency funds available to such customers than were actually in the MtGox bank account".
Quote
Plus, instead of being transparent and disclosing their balances as any serious company would do after the mainstream media started to write that Gox might be insolvent (Forbes, Wired....),
Show me one single other company which actually did that.Quote
while many customers started to leave them for good, causing a very unhealthy spread of +10% between exchanges, they just make up absurd excuses such as "the current withdraw problems are being caused by the traditional banking system, not because of a lack of liquidity at MtGox. The traditional banking partners that MtGox needs to work with, are not able to keep up with the demands of the growing Bitcoin economy"
Why don't you find that credible? At least it matches all curreently known facts perfectly well, which your explanation don't.Quote
Really? The above seems the most plausible answer to you after all the facts Gox have been hiding and that we now know?
Do you know any facts that I don't know?Quote
Finally, I'm amazed by the fact you keep repeating "they have $12M in their order book", like that is somewhat reassuring:
Then why do you think their profit is 0? They got most of the money from CoinLab in April. Why did they have any problems in the beginning of June then? Nobody, not even you, have presented any indications of MtGox beeing insolvent in the beginning of June. You have two weeks you can't explain, and even after those two weeks you are more than 10 million USD short of making MtGox insolvent with your calculations. Even if not everything is backed up with money in accounts, they can't be more than 2 million USD short, and there are at least 12 million USD in bids in their order book. They could keep up like nothing have happened and make that 2 million before Christmas. Why wouldn't they? Your explanation just don't make any sense. Why should risk their customers if they, by your calculations, didn't have to?- that money is just on Gox balances, it might very well not being backed by fiat in their back accounts (AS THEY STATED IN THE ANSWER TO COINLAB)
Quote
[/li][li]even if that money is fully backed by existing funds in their bank, what do you want them to do with it? That is supposed to be their customers money, they are not supposed to operate/cover holes with that!![/li][/list]
Huh? They could let users withdraw the funds, if they didn't have banking problems.Quote
- I don't know if you have any experience in running a business, but it doesn't seem so: the fact is they only have $12M in the order book (again: customers money), and they admittedly have a hole of $10M.
Quote
So, the hole is almost equal to the full amount of fiat they have in their order book,
Obviously wrong to anyone who knows basic arithmetics.Quote
- Another fact is they allegedly had only an income of $8M during the 4 months of all time high usd volume EVER, and again the hole is $10M. Let me tell you that's a huge hit for a business, having a hole significantly (20%) bigger that the income you got in your best 4 months ever is a BIG problem for ANY company. When the alleged hole was "just" $5M, I thought it was bearable. Now that we discover the hole is $10M, I can't help being worried.
maybe they are trying to put the brakes on a little bit and let some of the volume slowly migrate to other exchanges so that they aren't the primary target by all regulators any longer. Which would also be good for the bitcoin community.
Interesting point, however not something a business would do intentionally.
...
That may or may not be the case. Not all customers are created equal and some cost much more money than they bring in. The several reasons for this that I can think up off-hand are:
- They are generally criminal and are being chased by authorities.
- They are hand-to-mouth types who are constantly cashing out tiny amounts to eat.
- They are not prone to 'trading' but rather use the exchange sparingly to translate between value types (e.g., BTC->USD). I personally am in this category in part because I don't like giving a cut of my profits to someone else as exchange fees.
So it would do wonders for long term competitiveness to attempt to lose the contingent of customers who marginally profitable or a liability. Even better, shove them off onto a competitor.
maybe they are trying to put the brakes on a little bit and let some of the volume slowly migrate to other exchanges so that they aren't the primary target by all regulators any longer. Which would also be good for the bitcoin community.
Interesting point, however not something a business would do intentionally.
If the result is that more exchanges share the exposure to regulation, survivability of Bitcoin in daylight increases.
In addition note that gox is one of the only BTC businesses that has survived direct US Govt action trying to prevent them from conducting business.
Just a quick update, even Canadian withdrawals haven't been going through. Waiting 5 weeks and got the same messages everyone else did regarding USD withdrawals.
Requested cancellation and finally got the funds at least back into my mtgox.
Requested cancellation and finally got the funds at least back into my mtgox.
maybe they are trying to put the brakes on a little bit and let some of the volume slowly migrate to other exchanges so that they aren't the primary target by all regulators any longer. Which would also be good for the bitcoin community.
Interesting point, however not something a business would do intentionally.
If the result is that more exchanges share the exposure to regulation, survivability of Bitcoin in daylight increases.
maybe they are trying to put the brakes on a little bit and let some of the volume slowly migrate to other exchanges so that they aren't the primary target by all regulators any longer. Which would also be good for the bitcoin community.
Quote from: Rampion
We will have to agree to disagree then. In my book, a $10M hole for a young and relatively small company as MtGox is a huge hole.
Considering Gox is the biggest and oldest exchange and has been around from when BTC was worth pennies to what is now a billion dollar market, you must be crazy to think they are not cash rich.
LOL at a billion dollar market.
A billion dollar is the *theoretical* value of all the BTC in circulation, but the quantity of BTC actually moving and being traded is orders of magnitude lower.
Plus, they are so cash rich they do not even have a decent trading engine allowing for the simplest stop losses, nor a way to pay out quickly what they owe to their customers.
Do not underestimate amateurism and bad management.
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