Mt Gox: 530,000 MORE Bitcoins Still Exist!

It doesn’t seem as though this news has hit the US media yet. But a recent petition in Japan has alleged that ~530,000 bitcoins were being transferred by Mt Gox between March 7 and 10. 

Engrish version here.

And here’s the direct evidence: all the suspiciously large transactions here, and all the suspicious recent transactions here (which Mt Gox recently took down the list for– too late!)

[I have added up all the transactions listed on those two pages, not counting repeats, and it totals about 140,000 BTC. Insignificant considering that the “List of Largest Transactions” only lists 500 transactions, many of which were not confirmed.]

As of yet, neither Karpeles nor the lawyer covering the case, Kobayashi Nobuaki, has responded to these points.

I anticipate how they will respond. Maybe they won’t. Maybe this will be another Dorian Nakamoto. But I doubt that. A lot of money is at stake here. As in, about half a billion dollars at current rates. And nobody lets money get off the hook.

Karpeles won’t escape. Bitcoin transactions are all recorded. Once he makes a move, the entire Bitcoin community will sniff every detail out.

I can’t wait for the denouement.

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Mt Gox: Still a Scam

Yesterday, I moved my old refrigerator to my garage. When I woke up today, there was an icebox in my kitchen and nothing in the garage.

Mt Gox released a report stating that they had “found” 200,000 of the ~850,000 “lost” bitcoins. (The English version is on the second page.)

“But I thought the hackers proved that Mt Gox was a scam from the start?” (me to myself a few days back)

No. That was another scam. This stuff is getting problematic.

Disregarding that. This playout of events is unusually similar (see “Copycat Scam”) to MyBitcoin. After shutting down and claiming hax, they “recovered” 49% of their bitcoins and gave them back to the customers.

Mt Gox has not yet offered the 200,000 bitcoins they found back– likely, more bitcoins will be magically discovered, and then they will allow customers to retrieve a percentage of what was lost.

This only convinces me further of foul play. Think about it. What kind of atrocious accounting does it take to allow 200,000 bitcoins to sit around and not be verified when switching systems?

That’s like moving into a new house and taking a month to realize that you forgot to bring your family.

Or, as a more accurate analogy, depositing $1000 into a bank and taking a month to realize that your account only has $800.

You don’t even need to keep a record. Ignoring that a TRADING MARKETPLACE needs to have everything on record, how can you not bother to notice that A FOURTH OF YOUR MONEY ISN’T THERE?

For Mt Gox to have “thought” that these old wallets contained no bitcoins, they must have failed to check how many bitcoins they actually had in the new wallets. Which means, either Karpeles is such a retard that he doesn’t know how to count, or he purposely left those 200,000 bitcoins behind… to reproduce MyBitcoin’s scam.

I, personally, would be more likely to believe the “haxors” story were Karpeles not to have released this preposterous report. I suggest you do similarly. I am eager to see how this will progress.

Bitcoin: The First Shots, Fired

\Mt Gox seems to have gone dark, with supposedly 744,000 lost Bitcoins. Once the biggest Bitcoin exchange, now dirt on Bitcoin’s name and future.

Of course, something like this was destined to happen. Bitcoin is revolutionary. Bitcoin is new. Bitcoin is valuable.

“All that glitters, someone will try to take.”

That’s what we see here– the first major speed bump for Bitcoin. When even the largest middleman might filch your investments, why invest?

If you had to live in constant fear of the bank divesting you of your money, wouldn’t you stash it all under your mattress?

But even though to the Bitcoin world this is the equivalent of JP Morgan Chase closing its doors, saying “We have a bug”, I don’t think it’ll severely impede Bitcoin’s progress.

After all, the people investing in Bitcoin aren’t the common people. They’re the trailblazers. The WSJ recently reported that 75% of the US aren’t familiar with Bitcoin, and 80% wouldn’t bother using it.

For those 20% who will bother, and the even smaller percentage who actually are pushing the cause forward, Bitcoin isn’t just an investment they think will give high ROI. It’s a revolution they believe will overthrow paper currency. The death of the dollar. A few annoyances won’t stop them. They’re effecting a dream– and nothing can stop someone realizing his dream.

Because of this, while news on Mt Gox has only served to further alienate the populace from Bitcoin, the currency and community in itself is rebounding pretty quickly. Hitting a $400/btc low last night, trading is already back to about 545.

While Mt Gox has been spasming for several weeks now, dragging down prices from what was $800 at the beginning of February, perhaps weeding out this parasite may allow for a stronger push.

Bitcoin is still in its young days. Speculation will shift. Usage will alter. And news like this will only prolong the time before Bitcoin becomes a viable currency. But as Coinbase put it, “As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.”

But it doesn’t matter, because in the end, decentralized currency will win. No loss can suppress the thirst for freedom. And that’s exactly what Bitcoin provides: freedom of money, the future of Internet payment.

Let’s think of Mt Gox as we think of a flowerbed, blooming. Hidden amongst these flowers are weeds– few in number, but large in effect. While watching someone yank out weeds from a beautiful garden may be estranging, it’s a necessity to save and support the institution as a whole.