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Bitcoin exchange Mt Gox looks into criminal complaint

19 Comments
By YURI KAGEYAMA

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19 Comments
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Karpeles ... better run and find ... lots of angry people looking for you.

3 ( +5 / -2 )

Will the company making bitcoin-currency also be reimbursing me for a new top of the line computer and my kids as well who lost theirs exactly previous as the machine was flled with little lines of code making bit coin. I cant afford rto have my computer fixed so am plodding on my 12 year old machine. Anyone using trend or other expensive security may want to use AVG on their machine before it leavesno hard drive room and damages the mother board.

-6 ( +0 / -6 )

Virtual money, you can't touch Bitcoin by hands and you can't see Bitcoin in physical and then Bitcoin disappeared like UFO into the thin air.

I have no doubt about someone was crying day and night since Mt Gox filed for bankruptcy. I think Mt Gox story will open eyes of tech savvy community and question over the digital Cryptocurrency’s reliability and security. Currently Bitcoin is artificially over value and it’s about to crash anytime soon.

There is no tech-proof product so far. Somehow hackers are able to penetrate safest system and steal valuable data and account from server. Stealing from Computer is easier than Ronnie Biggs and his buddies robbing train in 1963. Mt Gox scandal is starting of debate over the digital Cryptocurrency’s future. I believe Bitcoin and other digital Cryptocurrency users will leave Virtual currency slowly and it will end of Crypto currency story.

1 ( +3 / -2 )

Trouble with this bit coin is that is doesnt show up until too late unless using AVG security free version, I have never made a financial transation on the web yet this bit coin or currency has cost me thousands of Australian dollars and no one seems to care about the virus being on the machines I am jusut told to throw itout and buy a new one, as if I can afford to do this wasteful measure. I will see if my govt of Australia can help withthe problem surely someone is liable and it is ost likely bit coin makers.

-8 ( +0 / -8 )

Mark Karpeles needs to be in jail.

-1 ( +5 / -6 )

MtGox should be held accountable for any lapses in security or outright fraud, if that turns out to be the case.

But that doesn't/shouldn't relieve investors of their own responsibility. After the bankruptcy press conference, the British fellow who had been protesting in front of their building was interviewed by TV reporters. He had big tears in his eyes as he talked about how MtGox had caused people to lose all their money and ruined their lives. That is just plain ridiculous. Aside from the fact that bitcoin is unregulated and all that, is not the first rule of investing in stocks or anything else that you don't invest any money that you can't afford to lose?

7 ( +7 / -0 )

Mark reads the site I see, he would be the only person to thumb down my comment :)

-1 ( +2 / -3 )

Theft or not theft... You don't just pull the plug overnight and sack the bitcoins that traders still had on their accounts! If you had come clean you give them a chance to withdraw what is still in the accounts!

0 ( +3 / -3 )

maybe it was an inside job

3 ( +4 / -1 )

Educator60,

But that doesn't/shouldn't relieve investors of their own responsibility.

Precisely.

I don't know what this guy's philosophy was, but when I hear how much money they had in there I really struggle to understand what he was thinking. The only thing that makes sense would be these people were bitcoin fanatics, and decided to convert their entire net wealth to bitcoin, believing it to be the way of the future...

... with no thought given to the inherent risks of anything that is based in software, e.g. software bugs and crackers trying to break the system, lack of typical government guarantees for bank deposits, etc etc.

is not the first rule of investing in stocks or anything else that you don't invest any money that you can't afford to lose?

And another is not to put all your eggs in one basket. I don't know how much he had in this basket, but the number I saw for this guy was hundreds of thousands of dollars' "worth". I'd only put that much in something new and risky like bitcoin if I were a serious multi-millionaire.

0 ( +1 / -1 )

Se... the problem is that Bitcoin isn't backed by any government, or any army, or an array of warheads. That means when an exchange broker goes boom, there is no recourse whatsoever.

...and people who lost their money on bitcoins, I just want to say that currency trading is a difficult task, and over 90% of traders lose money due to their greed, fear, inexperience, and ignorance. Also you have to choose well capitalised and regulated brokers who can afford to pay you out and not shaft you.

In currency trading, your first lesson is that you do not trade with money you cannot afford to lose, and secondly that all money you give to the broker is effectively their money until you file for a withdrawl. You may as well kiss it goodbye until then (but you probably won't if you're in the 90% loser category - you'll just margin your account out)

1 ( +2 / -1 )

the problem is that Bitcoin isn't backed by any government, or any army, or an array of warheads. That means when an exchange broker goes boom, there is no recourse whatsoever.

The flipside is that if you use government backed currencies, you can see your wealth plundered anyway. See Cyprus.

There might be an argument for regulation to at least ensure operations like MtGox have to keep customer funds (fiat currency) segregated in custodian accounts, but protection of bitcoin itself seems difficult.

IMO, the virtual currency community, if it wishes to have a serious future, needs to have systems in place to offer those who opt to buy-in some kind of guarantees to their bitcoins.

In currency trading, your first lesson is that you do not trade with money you cannot afford to lose, and secondly that all money you give to the broker is effectively their money until you file for a withdrawl.

That much depends on regulation. If a currency broker in Japan goes under, client funds are held in custodian accounts separate from the broker's accounts, so should be retrievable. (Admittedly with MF Global this was supposed to be the case too, but that seems to be a failure of regulators rather than a lack of regulations.)

2 ( +2 / -0 )

I stated this many time, this is not because the virtual currency bitcoin is hackable. Bitcoin itself is really difficult to hack, it's solely MtGox's total incompetency.

There are many reports that say MtGox didn't have the proper infrastructure, software, expertise to run an exchange. Their software developers didn't use version control, source code is a patchwork of fixes that cause other problems. Looks to me, this guy developed a software that "works", disregarding security and cases where it won't "work". When hackers come knocking, it's only a matter of time, before they gain access.

Do you know what the MTG in MtGox stands for ? Magic The Gathering, yes, you read it right.

-3 ( +1 / -4 )

Do you know what the MTG in MtGox stands for ? Magic The Gathering, yes, you read it right.

You're a fountain of knowledge dude.

Still sticking to your theory about them not backing up and losing the keys? Nah, now its something about not using SVN? Can you explain a bit more?

-2 ( +0 / -2 )

Everyone knows there was no bug in bitcoin but a bug in MtGox's implementation of it, they have no one else but to blame but themselves, they should have had much stronger offline cold storage systems, how the hell did their cold storage systems get stolen as well over a space of 2 years!?

Deleting all their tweets is paramount to destroying evidence.

0 ( +1 / -1 )

Digital Cryptocurrency transaction does not have transparency and can not be tracking down. The digital money can be easily stealing by Company employee or owner. You can make half billions dollars within minutes by stealing his or her Company digital money. The owner thief just needs to infest virus on Company’s server and let open the gate after stealing money. So he or she can prove it was not me and it was hacker. Also the digital Cryptocurrency trade was not regulated and Police is just helpless to sort out the crime.

0 ( +0 / -0 )

Kobuta Chan: Please don't post if you don't know what you are talking about, Digital Cryptocurrency has 100% transparency, everyone can see every transaction and how much everyone has. You can not "steal" it unless you know the owners private key (just like a password).

-1 ( +0 / -1 )

gogogo. Good please tracking down the theft who stolen BitCoin from Mt Gox if you thought Digital Crytocurrency transaction was transparent and traceable.

0 ( +0 / -0 )

Kobuta: Gox made the mistake by not checking the if the transaction ID's were valid, no one "stole" anything, Mt Gox were stupid in not checking for valid transaction ID's and handed the money out, a 2 year old known issue that isn't an issue if you knew what you were doing.

-2 ( +0 / -2 )

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