Mt. Gox Files for Bankruptcy Protection

[69360]

http://online.wsj.com/news/articles/...379087576.html

TOKYO—Bitcoin exchange Mt. Gox said it was filing for bankruptcy protection and that 750,000 of its customers' bitcoins and 100,000 of its own had been lost.

At market prices charted by the CoinDesk bitcoin index, that would represent a loss of $473 million.

The company's lawyer also said at a news conference at the Tokyo District Court that Mt. Gox had outstanding debt of about ¥6.5 billion ($63.6 million) with assets worth ¥3.84 billion.

Well I was wrong about that. I thought they would recover.

[thoughtomator]

I said at the beginning that the bitcoin mania would end in tears.

I can only imagine how stupid a person must feel after handing their savings to "Magic: The Gathering Online Exchange" and watching it disappear.

[muh_roads]

I said at the beginning that the bitcoin mania would end in tears.

I can only imagine how stupid a person must feel after handing their savings to "Magic: The Gathering Online Exchange" and watching it disappear.

Sure thing there Nostradamus. lol
Most smart people involved with btc haven't used gox for at least 6 months or more.

I pulled my manipulated wall street 401k out in 2012 to invest in crypto. No tears here.

[thoughtomator]

Sure thing there Nostradamus. lol
Most smart people involved with btc haven't used gox for at least 6 months or more.

I pulled my manipulated wall street 401k out in 2012 to invest in crypto. No tears here.

just for kicks, can you point out to me where you were warning people not to use MtGox, somewhere in that mountain of bitcoin shilling posts you've accumulated?

[enter`name`here]

Some guys had millions of dollars worth of coins there... they must be contemplating suicide. This is a harsh but nessisary lesson on what it means to be involved in an unregulated market, millions have been made and now millions have been lost. If you still have bitcoins you need to protect yourself because noone else will. If you dont have an offline wallet for "cold storage" you are liable to lose everything at any moment.

[Madison320]

Some guys had millions of dollars worth of coins there... they must be contemplating suicide. This is a harsh but nessisary lesson on what it means to be involved in an unregulated market, millions have been made and now millions have been lost. If you still have bitcoins you need to protect yourself because noone else will. If you dont have an offline wallet for "cold storage" you are liable to lose everything at any moment.

Bitcoin will fail not because it's unregulated but because it's not a reliable store of value.

[juleswin]

From day, I knew something was weird about MtGox, it always sold their bitcoins 5%+ more than every other trading website and the abnormal long time it took to withdrawn your investment from the site. In a way I think all this is good for the bitcoin community.

[muh_roads]

just for kicks, can you point out to me where you were warning people not to use MtGox, somewhere in that mountain of bitcoin shilling posts you've accumulated?

I have made plenty of posts expressing my concerns over Gox. The posts go as far back as their attempted connection with Coinlab when I thought being involved with US exchanges would be a problem. I have made plenty of posts saying I withdrew from Gox in March of 2013 and I made plenty of posts recommending Bitstamp due to geographical location of the bank account.

As for "shilling"...lol You green? <insert_cartman_licking_tears_from face_pic.jpg>

People here were buying as far back as $75 from what I can remember. I bet they are glad I was "shilling".

[ctiger2]

I said at the beginning that the bitcoin mania would end in tears.

I can only imagine how stupid a person must feel after handing their savings to "Magic: The Gathering Online Exchange" and watching it disappear.

#1 MTGOX used to be the largest BTC exchange. It wasn't even in the top 10 in the past 3mo. Saying Bitcoin is doomed because of Gox is like saying 1 KFC franchise store in the US went bankrupt so the entire KFC franchise is doomed.

#2 It's not like all these people "invested" all their savings in BTC. For ex., If a person bought 1,000 BTC at $1ea on Gox, sure today's value is over $500K. But the reality is these people are only out the 1,000 they orig "invested" anyhow. Cry me a $#@!ing river.

[Dianne]

#1 MTGOX used to be the largest BTC exchange. It wasn't even in the top 10 in the past 3mo. Saying Bitcoin is doomed because of Gox is like saying 1 KFC franchise store in the US went bankrupt so the entire KFC franchise is doomed.

#2 It's not like all these people "invested" all their savings in BTC. For ex., If a person bought 1,000 BTC at $1ea on Gox, sure today's value is over $500K. But the reality is these people are only out the 1,000 they orig "invested" anyhow. Cry me a $#@!ing river.

It still sucks. Lots of people bought btc on Gox at 1,000. each. I still think criminal charges against the owner can be pursued. The days he sold btc for 98. while preventing the owners of the btc from withdrawing shows criminal intent to defraud plus grand larcency, and probably a case can be made for identity theft. And to think he has access to people's bank account numbers and other private data.

[Madison320]

#1 MTGOX used to be the largest BTC exchange. It wasn't even in the top 10 in the past 3mo. Saying Bitcoin is doomed because of Gox is like saying 1 KFC franchise store in the US went bankrupt so the entire KFC franchise is doomed

That's not a very accurate analogy. A bankrupt KC doesn't cost me anything. A bettor analogy would be if a several thousand banks in the US closed their doors and the clients deposits disappeared. That might shake confidence in the remaining banks.

[squarepusher]

So if someone "steals" your cryptocurrency, what is the course of action to take ? It doesn't seem to be illegal, maybe you can just damage their reputation ?

[muh_roads]

That's not a very accurate analogy. A bankrupt KC doesn't cost me anything. A bettor analogy would be if a several thousand banks in the US closed their doors and the clients deposits disappeared. That might shake confidence in the remaining banks.

The point is Bitcoin is the protocol. Gox was just a service layer on top of the protocol. All ctiger2 was trying to emphasize is that Bitcoin wasn't designed to protect you from bad actors. In fact it should be clear from the beginning it would be the exact opposite since it is 100% decentralized. And Gox being $#@!ty doesn't mean "the end of Bitcoin". The media is being extra retarded about the whole thing. Of course it's the media so there should be no surprise there.

What is surprising is that the same group of people on RPF here that don't believe much in what the media says are buying into the whole "Bitcoin is dead". People don't trust the media but they'll believe them on this. I think people know better, they just have sour grapes.

[dannno]

So if someone "steals" your cryptocurrency, what is the course of action to take ? It doesn't seem to be illegal, maybe you can just damage their reputation ?

Morally or legally?

Morally I would say it's ok to damage their face.

Legally they should pay restitution and/or go to jail, but I don't know how the laws are actually setup.

[Dianne]

Morally or legally?

Morally I would say it's ok to damage their face.

Legally they should pay restitution and/or go to jail, but I don't know how the laws are actually setup.

I'm going to agree with you Danno. Bankruptcy doesn't trump grand larceny, fraud ... The major evidence against this tard is for days he was selling others' btc's at 98.00 to 100. when other markets were at 600. He was clearly unloading, dumpint, running for $$$$$ all the btc's of others' in his care, custody, and control .. This guy should be prosecuted and spend the rest of his life in prison like Bernie Madof.

It's really sick to think so many peeps bought into btc, and spent hours watching and planning for the next sale, etc.;and this guy shuts down their ability to withdraw? While he seizes their money and dumps it, into his own account.

Man ... if he lived in China; they would have already executed him.

[LibertyRevolution]

I would like to see the entire cryptocurrency thing fail, its not sound money, its backed by nothing.
I have no idea why people would accept them as payment for any physical goods.

To me it is like using farmville cows as currency...

Even if silver was worth nothing, I could still make mirrors and sharp things from it, so at least it have a purpose.
You know like sharp things for killing food I need to eat, or mirrors to reflect sunlight to my solar cells to heat my home..
You know while you starve and freeze to death with your bitcoin wallet when there is no power from SHTF..