Topic: Will customers who have FIAT at Mt. Gox be able to withdraw their FIAT currency? (Read 1894 times)

I just wonder if it would have any legal consequence that they have the money but that its not "fully in their system" - i.e. it hasnt yet been credited to my user account. Would that give me more of a right to receive the money back, instead of it going to some creditors?

In legal-speak, if the money isnt yet in my user account then I cannot be regarded yet as an "unsecured creditor" and that would land me in another category than the rest of the one million mt. gox customers who may not get much or anything back?

If you deposited very recently, your best recourse may be trying to reverse the wire with your bank.

In this text it says the fiat has also disappeared. Which seems impossible since the fiat should be in a bank account. How could a hacker hack away the fiat also ?

http://www.reddit.com/r/Bitcoin/comments/1z7krg/japanese_newspaper_asahi_shimbun_has_50_billion/cfr8f61

That's a really  good question. Actually they haven't explained it and I think they won't as bankruptcy process is going.

Actually, this brings up a good question.  We know that Gox is short of BTC, but are they missing fiat as well, and if so how do they explain it?

This.

We don't have information. We have only rumors. The money or the fiat may all be gone or it may all be recovered. Or you get a haircut.

In this text it says the fiat has also disappeared. Which seems impossible since the fiat should be in a bank account. How could a hacker hack away the fiat also ?

http://www.reddit.com/r/Bitcoin/comments/1z7krg/japanese_newspaper_asahi_shimbun_has_50_billion/cfr8f61

I just have ONE question, because this applies to me. I have a lot of eur and usd there, and a little bitcoin, but mostly FIAT!

Will customers who have FIAT at Mt. Gox be able to withdraw their FIAT currency?

So, with 850k bitcoin apparently "missing" - does that mean that I wont get my FIAT back? Are they going to steal my fiat and pay back their creditors with it?
Are all clients going to share the loss, or is it only the bitcoins that are missing that will not be withdrawable? Or will simply all of it, even the bitcoins still there not go back to the customers because they will pay it to the creditors?

I hope someone with a good understanding of all of this stuff, can tell me what is most likely.

What Im really curious about is whether the funds at mt gox will be treated as a pool or whether they will differentiate between "these usd belong to client a, those belong to client b and from client b there are 40% missing and from client a there is 10% missing".

If you deposited usd in 2011 and every dime is missing, gone poof, while I deposited the same amount just a few days ago and every cent is there - should I get 50% of the total and you the other half or should I get all of it and you nada?

Actually, this brings up a good question.  We know that Gox is short of BTC, but are they missing fiat as well, and if so how do they explain it?

WARNING: PURE SPECULATION

I'm changing my tune.  Yesterday I thought the 750,000 BTC figure was FUD to get certain Gox creditors to voluntarily accept 10 cents on the dollar for their GoxBTC.  The theory I'm leaning towards now is that the 750,000 BTC figure is true and Gox has indeed been operating as a fraction reserve.    

The theory is that sometime in 2011--probably after the crash from $30 to $10--MtGox was lax with security and a group of thieves or hackers was able to steal about 500,000 to 1,000,000 BTC.  At the time, this only represented $10 million dollars.  

To avoid discrediting bitcoin and embarrassing himself, Mark pretended that nothing happened.  He knew that BTC withdrawals were roughly balanced by BTC deposits (typical fraction reserve banking) and he hoped to slowly earn back the bitcoins through trading fees.  

Meanwhile, the thieves worked to mix their coins with non-stolen coins and slowly sold them off, thereby driving the bitcoin price eventually to $2 later in the fall of 2011.  It was this extra selling pressure that continued through the remainder of 2011 and 2012 that kept the price of bitcoin artificially depressed.

Meanwhile MtGox was buying coins whenever it had spare cash.  But as the price of bitcoin exploded in the spring of 2013 they saw their liabilities in $ terms increase tremendously.  But at this point they had to keep going, even using customer deposit money to buy coins from other exchanges or individuals.

The problems at MtGox (probably due to extreme stress of MK) got worse, and MtGox lost market share, slowly dwindling down MtGox's small supply of coins.  

MtGox purposely mixed immature coins into withdrawal transactions, and later used the malleability excuses, all to buy time to somehow get more coins and make good on withdrawals.  

But eventually all hope was lost.  Their supply of coins dwindled down to 2,000 BTC while their bitcoin liability were a huge 750,000 BTC.  

And here we are today.  If this theory is correct, there are 750,000 less bitcoins in existence than what everyone thought.  

This.

We don't have information. We have only rumors. The money or the fiat may all be gone or it may all be recovered. Or you get a haircut.

If they declare bankruptcy, yes.