• Mt. Gox declares bankruptcy, is hit with lawsuit, and 20GB of data is (allegedly) stolen
    24 replies, posted
[quote](Reuters) - Mt. Gox, once the world's biggest bitcoin exchange, filed for bankruptcy protection in Japan on Friday, saying it may have lost nearly half a billion dollars worth of the virtual coins due to hacking into its faulty computer system. The collapse caps a tumultuous few weeks in which the company has remained virtually silent after halting trades of the crypto-currency, shaking the nascent but burgeoning bitcoin community. Wearing a suit instead of his customary T-shirt, Mt. Gox's French CEO Mark Karpeles bowed in contrition and apologized in Japanese at a news conference at the Tokyo District Court, blaming his firm's collapse on a "weakness in our system", but predicting that bitcoin would continue to grow.[/quote] Source: [url]http://www.reuters.com/article/2014/02/28/us-bitcoin-mtgox-bankruptcy-idUSBREA1R0FX20140228[/url] [quote]Feb 28 (Reuters) - Mt. Gox, once the world's largest bitcoin exchange, has been sued by a customer in what may be the first of many U.S. lawsuits seeking to recoup millions of dollars of losses linked to a hacking attack that led to the exchange's bankruptcy. In a complaint filed on Thursday in U.S. District Court in Chicago, plaintiff Gregory Greene said Mt. Gox and its chief executive, Mark Karpeles, were negligent and committed fraud for having failed to protect the Tokyo-based exchange from theft. Greene said bitcoin prices plummeted after Mt. Gox found the security breach, but said he and other investors in the virtual currency could not cut their losses because the exchange had halted trading. Mt. Gox took down its website on Tuesday. "Mt. Gox intentionally and knowingly failed to provide its users with the level of security protection for which they paid," said Greene, who estimated his bitcoin stake at $25,000. [/quote] Source: [url]http://www.reuters.com/article/2014/02/28/bitcoin-mtgox-lawsuit-idUSL1N0LX1QK20140228[/url] [quote]Right now in ##mtgox-chat someone named nanashi____ claims to be speaking for a group of hackers who have gotten into Mt Gox in an attempt to figure out what happened. Nanashi says they have a DB dump and are looking at what to do with it.[/quote] Source: [url]http://dzoba.com/apparently-mt-gox-has-been-hacked-again-by-people-trying-to-find-out-what-happened/[/url] IRC Log: [url]http://pastebin.com/N7B5DC4d[/url] Some (alleged) Mt. Gox code: [url]http://pastebin.com/W8B3CGiN[/url] Conversation (again, allegedly) between Karpeles and a banker: [url]http://picosong.com/Y7di/[/url] There's also a statement posted on their website: [quote]MtGox Co., Ltd. made today an application for commencement of a procedure of civil rehabilitation (minji saisei) at the Tokyo District Court. This application was accepted on the same day. Further, MtGox Co., Ltd is under several orders issued by the Court : a preservative order prohibiting it from paying its debts, transferring its assets or establishing security over its assets, an order establishing a comprehensive prohibition of forced attachment of its assets by its creditors and a supervisory order ordering supervision by a supervisory committee. In consequence, MtGox hereby informs you as follows. We first express our most sincere regrets and apologies for this situation and for causing so much inconvenience to all our users and other interested parties. We will fully respect the above orders and maintain our assets with all the necessary care.[/quote] Source: [url]https://www.mtgox.com/[/url] Translation: [url]http://www.reddit.com/r/Bitcoin/comments/1zezhs/new_announcement_on_mtgox_site_mar_3_2014/[/url] tl;dr mt. gox is fucked
Didn't Linus Mention this on the WAN show?
[QUOTE=RoboChimp;44110305]Didn't Linus Mention this on the WAN show?[/QUOTE] not everyone watches linus
Half a billion dollars would be tempting I think for any person in the position to steal it. I wouldn't doubt if mt. gox owners stole it, and something tells me they are gonna get caught if they did.
Investors aren't getting their money back I'm afraid
[QUOTE=Death_God;44110463]not everyone watches linus[/QUOTE]No, but that means it's old news.
What the hell, I just remembered I had 0.5 BTC on mtgox. I wasn't able to withdraw it a few months ago because suddenly mtgox required me to verify my account to withdraw, and they require a proof of residence which I do not have. I forgot the thing for an awhile and now this. Have I lost my funds?
[QUOTE=Maucer;44112380]What the hell, I just remembered I had 0.5 BTC on mtgox. I wasn't able to withdraw it a few months ago because suddenly mtgox required me to verify my account to withdraw, and they require a proof of residence which I do not have. I forgot the thing for an awhile and now this. Have I lost my funds?[/QUOTE] Most probably, yeah. Hope you didn't buy in, but rather mined them early on.
What a rollercoaster this bitcoin shit has been. Jesus. Every time I start getting sad I didn't put time or money into it, something like this happens.
So now bitcoin investors are heading to the courts when what they wanted in the first place was no government intervention and complete economic freedom from the government. You get what you ask for.
time to switch to dogecoin
[QUOTE=Xyrec;44113639]time to switch to dogecoin[/QUOTE] Dg. Gox anyone?
Be glad you guys aren't like the idiots who kept over 110K btc on gox when they went bankrupt. I literally cannot fathom why anyone would put that much money on an exchange pretty much the entire bitcoin community was saying "DO NOT USE" for almost an entire year. There were plenty of times to pull out without a loss last year and early this year as well. Also, its speculated that this whole Gox situation was started in 2011 when Gox was hacked: [url]http://www.reddit.com/r/Bitcoin/comments/1zdnop/peter_rs_theory_on_the_collapse_of_mt_gox/[/url] TL;DR Gox was missing over a million BTC's worth of coins when they got hacked in 2011. Back then the price was dirt cheap so he planned on making that ~$5.2 million loss back in trading fees and such behind closed doors and not tell anyone that their reserves got drained. The problem was that $5.2m loss turned into a several billion dollar loss as the price of BTC went up, making something like this harder and harder to recover from. This month was simply the straw that broke the camels back. None of the above is confirmed as 100% true for obvious reasons, but it makes a lot of sense especially since its impossible to lose over 850,000 coins to transaction malleability unless the attackers were literally doing it for years and years (also a possibility, but less likely).
While it does suck for everyone involved and all, the drama playing out on Bitcoin forums and subreddits over this is utterly hilarious. The hardcore libertarians and anarcho-capitalists are scrambling to save their ideology as their wet-dream of a totally unregulated currency collapses right in front of their eyes. Just yesterday one of the most upvoted posts in /r/bitcoin was from a "Bitcoin millionaire" [url=http://www.reddit.com/r/Bitcoin/comments/1z9fv7/if_us_regulators_had_allowed_a_us_bitcoin/]claiming that the Mt. Gox fiasco was CAUSED by government regulation.[/url] [url=http://archive.is/IDttf#](Archive)[/url] You've got Reddit's [url=http://www.reddit.com/r/Bitcoin/comments/1za9sf/found_at_least_150k_btc_of_mt_goxs_stolen_coins/]crack squad of amateur detectives analyzing the Bitcoin blockchain[/url] to try and "find" the "missing" Bitcoins (since reddit's track record with playing detective is SO great), you've got people [url=http://www.reddit.com/r/Bitcoin/comments/1x9gue/my_protest_at_mt]flying halfway across the world to hold signs in front of Mt. Gox's offices[/url], it just keeps coming! The delusional nature of hardcore Bitcoin believes never ceases to amaze me.
They should have stuck to Magic the Gathering cards
[QUOTE=Protocol7;44112852]What a rollercoaster this bitcoin shit has been. Jesus. Every time I start getting sad I didn't put time or money into it, something like this happens.[/QUOTE] And now you see the charts ([url]http://bitcoinwisdom.com/markets/bitstamp/btcusd[/url]) and wish you bought some.
[QUOTE=SPESSMEHREN;44113945]While it does suck for everyone involved and all, the drama playing out on Bitcoin forums and subreddits over this is utterly hilarious. The hardcore libertarians and anarcho-capitalists are scrambling to save their ideology as their wet-dream of a totally unregulated currency collapses right in front of their eyes. Just yesterday one of the most upvoted posts in /r/bitcoin was from a "Bitcoin millionaire" [URL="http://www.reddit.com/r/Bitcoin/comments/1z9fv7/if_us_regulators_had_allowed_a_us_bitcoin/"]claiming that the Mt. Gox fiasco was CAUSED by government regulation.[/URL] [URL="http://archive.is/IDttf#"](Archive)[/URL] You've got Reddit's [URL="http://www.reddit.com/r/Bitcoin/comments/1za9sf/found_at_least_150k_btc_of_mt_goxs_stolen_coins/"]crack squad of amateur detectives analyzing the Bitcoin blockchain[/URL] to try and "find" the "missing" Bitcoins (since reddit's track record with playing detective is SO great), you've got people [URL="http://www.reddit.com/r/Bitcoin/comments/1x9gue/my_protest_at_mt"]flying halfway across the world to hold signs in front of Mt. Gox's offices[/URL], it just keeps coming! The delusional nature of hardcore Bitcoin believes never ceases to amaze me.[/QUOTE] I seriously won't be surprised if people start commiting suicide over bitcoin soon, they are way too dedicated to this I wish they'd just let bitcoin die but thanks to greed it's basically a zombie, every time it collapses people go "WAAAAH TIME TO INVEST IM GONNA BE RICH!!!" and end up forcing it back into life again
[QUOTE=Firewarrior;44114031]And now you see the charts ([URL]http://bitcoinwisdom.com/markets/bitstamp/btcusd[/URL]) and wish you bought some.[/QUOTE] I really don't wish I bought some. I already have a working job and bitcoins are too much of a gamble to be worth it. (Remember the guy who spent his $100,000 inheritance on bitcoins and lost it all?) Let Bitcoin be an example why real life currency has regulations and accredited businesses and organizations backing it.
[QUOTE=Protocol7;44114213]I really don't wish I bought some. I already have a working job and bitcoins are too much of a gamble to be worth it. (Remember the guy who spent his $100,000 inheritance on bitcoins and lost it all?) Let Bitcoin be an example why real life currency has regulations and accredited businesses and organizations backing it.[/QUOTE] To be honest, Mt. Gox has always been quite shitty (which was well known in the community) and really shouldn't be an example. That said, I would never invest money in Bitcoins, got mine from mining altcoins and trading.
[QUOTE=Firewarrior;44114262]To be honest, Mt. Gox has always been quite shitty (which was well known in the community) and really shouldn't be an example. That said, I would never invest money in Bitcoins, got mine from mining altcoins and trading.[/QUOTE] Yeah. Before Mt.Gox went down the shitter it was painfully obvious they didn't have the funds to support all the withdrawals and stuff - people really should have been smarter about the whole thing. I see people have switched to Bitcoin trading vs PayPal and I wonder why the hell you'd rather deal with smoke for currency, even in light of how shitty PayPal is.
[QUOTE=Protocol7;44114213]Remember the guy who spent his $100,000 inheritance on bitcoins and lost it all?[/QUOTE] I remember that guy! [QUOTE]I have seen you make a similar post within /r/apple at least once before. Apple products are luxury goods for individuals with high incomes. $1800 is not a lot of money to many of us. Whether I buy a $500 laptop, a $1800 laptop, or a $5000 laptop makes no difference to me financially. If this is a testament to how you spend your time there is no need to wonder why you are poor. You too probably do not understand why someone would buy a luxury car, clothing, or home. You lack sophistication and culture so you rage with jealousy and envy on the internet about things you don't understand. Apple laptops are not by any means the most expensive computer someone can "come across." I also own an Asus G75VW-DH72 and a variety of other computers that I have purchased over the years. Again, you are obviously poor. You are right, I do not have the same concept of money as you. Whether or not I am purchasing a Apple laptop or a Mercedes makes no difference to my quality of life nor does it alter my financial state. Would you consider someone foolish for spending $1.99 on a pack of gum instead of the cheaper .99 option? Your concept of money is one of a poor persons. You have an inflated view of $1000 that many of us do not have. If it makes you feel better I can send you an old Apple product collecting dust in my closet. You seem to be the type of person that is poor from lack of education and drive rather than an unfortunate circumstance so you may not deserve it but that is okay. [/QUOTE] He had it coming to him.
Nothing says monetary schadenfreude like "Your concept of money is one of a poor persons."
Boy oh boy was I right when I decided not to trust them for fuck all of my information
This just in, people are fucking stupid. There are guides all over the place telling you how to protect your cryptocoin stock. Step one is not to leave it on someone else's server.
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