Topic: MtGox withdrawal delays [Gathering] - page 330. (Read 908613 times)

This is even worse than I thought. Stalling on withdrawals didn't start on June 20; it goes back further.

Paul Vigna, a reporter at the Wall Street Journal, is covering this story.  I've talked to him. He can be reached at [email protected]. He would like to hear from people who are having trouble getting substantial amounts of money out of Mt. Gox.

Five digits (just) are not getting my withdrawal of 13 June processed.

Classic goxxing

You just need to look at MtGox's facebook page

This from a couple of days ago:

"Alexandra Sokolova   Not kidding, they are dicking me and many other around. I know someone who decided to cash out in 130k April, and wire transfer in seperate transactions thoughout late April and early May, they proccessed some of the smaller ones but all the larger ones are still pending 3 months later."
https://www.facebook.com/MtGox

Why always just boys? So far, no woman has complained. 

Yuck. That facebook page is a public relations Amityville house of horror. All that is missing is blood spots.

In that case here are the guys who can't withdraw out in the real world

https://www.facebook.com/MtGox?filter=2

No, but it still costs millions of dollars like it did a year ago.

Picture taken from an airline website. There are two lanes. The fast one is for people with priority check in.

NB does not mean I believe that "5 digit+ are being given priority over the rest" talk.

I've been waiting on a USD transfer for slightly under 5 digits since July 5 now. Like everyone else, the only response I've received is the canned answer about it being in the queue.

I don't know why they would ever announce that things were back to normal two weeks ago. Even now, it says on the withdrawal page that wire transfers only take a week. Clearly that is not the case.

And what is up with 5 figure transfers getting priority? If that is true (which this thread seems to put it into doubt), doesn't that just give an unfair advantage to a select group now because they can arbitrage with other exchanges? And therefore increase the pressure of exchanging money on MtGox? And constantly locking out smaller players?

It's astounding that no other exchange is stepping up to the plate who has the regulatory documentation and with the ability to handle large volumes. FINCEN and the SEC have more or less legitimatized Bitcoin as a currency, so it's not like setting up a Bitcoin exhange is nearly as risky as it was even a year ago.

Rattus: thx for pasting the transcript... saved me doing it.

Eurotrash: I don't get the pic even though I'm quoted above it! Can you please explain it for me


I also wanted to add that I discovered there was another line to my support chat transcript before Nancy disconnected  that I didn't se but was included in the ticket update later. Seems the session dropped...

Nancy 12:51:
Sorry for that. Right now we would not be able to provide ETA

Nancy 12:51:
Are you there?

Nancy has left the room

The misconception of having your business or your name on a bank account that has $1 trillion dollars is worthless if it is frozen by the authorities.

Insolvent I would say is "not able to access all of their funds due to not being in compliance".

Laughable graphic, quite suitable.

The consistent spread between Gox USD and bitstamp USD (as in how many of these dollars buys a BTC on either exchange) supports the theory that their is a perceived lower value of USD on Gox, the spread seems to be large then would would be accounted for by the delay inconvenience alone, but it is not high enough to say their is a widespread belief in insolvency, only a weak suspision.

Now what would happen if their really was a 'run' and Gox (which has been exposed as a quasi-bank).  Certainly a spike in its exchange rate would occur as Gox USD (or GXD as I will call it) is actually falling relative to BTC.  What would be interesting is seeing how things move on other exchanges.  Will the market view Gox insolvency (or the perception of it) as such a bearish signal that other non Gox exchanges see a drop in rates?  Might we develop a double exchange rate, USD<->BTC<->GXD?  Maybe the two will cancel out and the rate actually remain flat on Gox and its just the other exchanges which drop, so in effect what we want to keep on eye on is the spread between GXD and USD, its currently near 7.5% if that increases then it would be a sign of greater insolvency fear.

I do not believe for one second that MtGox is actually insolvent.

Incompetent, yes. But they have a shitload of money. They have like two dozen employees and their operating revenue is at least half a million $ per month. And they have more fiat coming in all the time.

I find it entirely plausible that they've just had a hard collision with the reality of doing any kind of business in Japan, and especially with the antiquated Japanese banking system. I think they're still processing every single outgoing wire by hand, in person, in paper, and having a bank employee input every single wire by hand to the bank's system.

Eventually they will get into financial trouble, if this continues and they don't find a better banking solution.

MTGOX in my opinion is insolvent.  The purchase of Bitcoins within the exchange is being performed on the basis of a belief that the funds listed on your account page actually exists.

The purchase of BTC's on MTGOX right now is being performed based on funds that are simply listed on your account. It's almost like a demo account with fake money, but the BTC's are real. If you can't get your funds out, how do you know that it actually exists?

Say MTGOX only has 2 customers (A and B). Customer A has 100 BTC's and B has enough USD in their MTGOX account to purchase all of those BTC's. Customer B with USD in GOX can't withdraw, so B buys all of Customer A 's BTC and transfers them to another exchange where B can sell those BTC's and make a withdrawal without an issue.

Customer A now has USD in their GOX account, however it's USD that they can't withdraw and there are no other customers to purchase BTC's from, so A is stuck with his/her USD in GOX and no way to get it out --- No one to buy BTC's from and no way to get the USD out because MTGOX isn't processing the withdrawal.  Now the million dollar question is this: DO THE FUNDS NOW IN CUSTOMER A's ACCOUNT ACTUALLY EXIST? It say's that they have it on their MTGOX account, but does it really exist?

It's not like MTGOX has an independent 3rd party that can audit them to say that they indeed have everyone's funds and are solvent. All we are left with is an account page that says that you have $xxxxxx.00 

You can purchase BTC's with those funds listed there, because for the moment, everyone believes that those funds are real. But can you all withdraw your funds right now?

What's working in the MTGOX's favor right now is the fact that they obviously don't have just 2 customers. Additionally, customers are depositing funds.  What's saving them from a collapse is that the simplified scenario above is being prevented by the thousands of MTGOX customers who aren't heading for the door at once. BUT, if something were to trigger a panic, we'd see the price of BTC's on MTGOX shoot up and those willing to take a lose by purchasing BTC's at panic prices will be able to get their funds out through the transfer of BTC's and those left holding USD will be out of luck. Those left holding USD will have their USD delineated on their MTGOX page, but are those funds really there? Since there wouldn't be anyone to "buy" BTC's from (because they left with the BTC's that you sold them), you could put in a request to withdraw those funds, but when that request doesn't get fulfilled (like the stories that we keep reading on this forum), is your money really in your account?

You can "buy" BTC's with the funds listed on your MTGOX account because everyone believes that those funds really exist and accept them (electronically), even if they can't withdraw those funds.  You can then transfer those BTC's out and it has nothing to do with the liquidity of MTGOX. The acquisition of BTC's and the transfer of BTC's is solely based on the belief that the funds listed on your MTGOX account are real.

If you can prove that those funds in your account actually exist, then the belief that MTGOX is insolvent is unfounded.

Where exactly am I crying?

Pointing out bullshit is not crying lol.

I'm not complaining that I had to pay fees to get my funds off of gox. Merely calling out mark's statement as false given my situation was as he stated yet I did not get a wire for over a month.

Smoothie's post is in topic.
Your reply is a personal remark with no value added.

And your actions are a result of your impatience. But why still crying? You've made your decision and have got your money or not?

I call bullshit on the 5 digit amounts.

I had a total of 5 digit amount that did not clear when initiated mid June. Earliest was June 13th. I had to cancel to get off of gox via BTC.

This was only less than a week ago.

Actions speak louder than anything they say. Inactions also say a lot as well.