Yes, hopefully authorities will do a good job on investigating that angle. It isn't credible that they didn't notice the fiat hole before.
They knew and its documented. As I wrote in September 2013 during a typical argument with sturle:
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.
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".
The most plausible explanation to the ongoing delays, given the above and the other information available to the public, is that Gox is low on cash and running a fractional reserve.
So, IMO the big question is not "if" they knew they were short of customer's money because it is painfully obvious THEY KNEW, the big question is:
WHERE DID THAT MONEY GO???$5.5M are held by Department of Home Security (the "Dwolla situation") and $5.3M by Coinlab, that's clear. But where did the rest of the money go, as they are claming they have a hole of $22M? We need to factor in that they have made +$10M in trading fees during the last year, so in reality the missing money is at least $32M...
Crazy stuff, you really can't make this shit up.
stop making us bitcoiners looks like nerds trading magic cards
