Mt. Gox's Bitcoin Bankruptcy - 99bitcoins.com

Statement from Mt.Gox regarding the outage yesterday & lag

Source: http://www.facebook.com/MtGox/posts/453409538076792
It’s been an epic few days: What happened?
Dear Mt.Gox users and Bitcoiners,
It’s been an epic few days on Bitcoin, with prices going up as high as $142 per BTC. We all hope that this is just the beginning!
However, there are many who will try to take advantage of the system. The past few days were a reminder of this sad truth.
Mt.Gox has been suffering from its worst trading lag ever, 502 errors, and at one point some users were not able to log in their account. The culprit is a major DDoS attack against Mt.Gox.
Since yesterday, we are continuing to experience a DDoS attack like we have never seen. While we are being protected by companies like Prolexic, the sheer volume of this DDoS left us scrambling to fine-tune the system every few hours to make sure that things don’t go beyond a few 502 error pages and trading lag.
Why has Mt.Gox become the target of a DDoS attack? It is not yet clear who is behind this DDoS and we may never know, but these actions seem to have two major purposes:
  1. Destabilize Bitcoin in general. It is not a secret Mt.Gox is the largest Bitcoin exchange with more than 80% of all USD trades and more than 70% of all currencies. Mt.Gox is an easy target for anyone that wants to hurt Bitcoin in general.
  2. Abuse the system for profit. Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.
What can be done? Believe it or not, there is pretty much nothing that can be done. Large companies are frequently victims of these kinds of attacks. Even though we are using one of the best companies to help us fight against these DDoS attacks, we are still being affected.
There are a few things that we can implement to help fight the attacks, such as disconnecting the trade engine backend from the Internet. By separating the data center from the Mt.Gox website, we will continue to be able to trade.
What can you do? Like our favorite author here at Tibanne says… Don’t Panic!
“Panic-selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals.” (Source: Wikipedia)
I understand that many of you have a lot at stake here, but remember that Bitcoin, despite being designed to have its value increase over time, will always be the victim of people trying to abuse the system, or even the value of Bitcoin decreasing occasionally. These are not new phenomena and have been present since the beginning of time when humans first started trading.
Trade Engine Lags Lag affects everyone, not only us, but also major, world-renowned exchanges like the NASDAQ and NYSE. We can fix lag, but we cannot eradicate lag. Only small exchanges with low volume and liquidity are immune to lag.
Does this mean that we are giving up fighting lag? Hell, no. We are working on it by creating a new trade engine that will solve many problems, but it’s not a magic bullet. We can always try to scale our servers, but we cannot predict what happens from external sources: DDoS, panic selling, immediate increase of buyers, etc. Lag will always be there, but our mission is to make lag as small as possible.
Account Verification As if a major DDoS attack was not enough, we at Mt.Gox are victim of our own success!
Last year, Mt.Gox saw an average of 9,000 to 10,000 new accounts created every month. This number doubled in January, tripled in February, and sextupled in March. In this month alone, over 57,000 new accounts were created!
Our support and account verification team went from four people in January 2012 to twenty-two people working every day of the week. We are now hiring even more people to solve this problem by finalizing some deals with external companies.
Remember that even if you are waiting for your account to be verified, you can still deposit or withdraw funds via our Japanese account and make your trades! (Only accounts that we pro-actively required to be verified are limited to deposits and trade only.)
Finally We have seen a significant amount of comments on the web (various forums, Reddit, etc.) that portray Mt.Gox as a company held by “idiots” and other rather rude words, complaining about inability to deal with lag and other system issues, without understanding the magnitude of work and attacks we are facing every day.
I understand the frustration many of you feel. We hate this situation as well. Since we took over Mt.Gox, we have been through Hell and back and we are still here. We are still the largest exchange with over 420,000 trades per month and USD $121 million monthly trade volume. We have worked our way through all the requirements needed to run our exchange legally.
Now, there are some things we can improve, but so far we are doing an incredible job that no other exchange has been able to do so far. While I understand a certain amount of frustration, realize what we have accomplished. I appreciate all the work you are doing everyday to push things forward and to help secure the future of Bitcoin
And to all of you who are supporting us on a daily basis, thank you! We could not have done any of this without your help!
Source: http://www.facebook.com/MtGox/posts/453409538076792
submitted by papa_doke to Bitcoin [link] [comments]

Mt. Gox, one of the oldest and largest crypto-currency exchanges is now refusing to release millions of dollars in funds and thousands of Bitcoins that were deposited by investors. These guys flew across the world to Japan to demand answers. Let's make sure their trip wasn't in vain Reddit.

Mt. Gox, one of the oldest and largest crypto-currency exchanges is now refusing to release millions of dollars in funds and thousands of Bitcoins that were deposited by investors. These guys flew across the world to Japan to demand answers. Let's make sure their trip wasn't in vain Reddit. submitted by Gordopolis to pics [link] [comments]

The CNN website (top hit for a Google search of 'What is Bitcoin') still shows Mt. Gox as being the largest exchange.

The CNN website (top hit for a Google search of 'What is Bitcoin') still shows Mt. Gox as being the largest exchange. submitted by Zachincool to Bitcoin [link] [comments]

CEO of Largest Bitcoin Exchange in the World, Huobi Responds to MT.GOX Situation | Says LTC on Huobi is in works

CEO of Largest Bitcoin Exchange in the World, Huobi Responds to MT.GOX Situation | Says LTC on Huobi is in works submitted by Jack_Gatsby to litecoin [link] [comments]

Mt. Gox, one of the oldest and largest crypto-currency exchanges is now refusing to release millions of dollars in funds and thousands of Bitcoins that were deposited by investors. These guys flew across the world to Japan to demand answers.

Mt. Gox, one of the oldest and largest crypto-currency exchanges is now refusing to release millions of dollars in funds and thousands of Bitcoins that were deposited by investors. These guys flew across the world to Japan to demand answers. submitted by cancercures to EnoughLibertarianSpam [link] [comments]

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse submitted by bearjewpacabra to btc [link] [comments]

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse submitted by NvrIdle to Bitcoin [link] [comments]

CEO of Largest Bitcoin Exchange in the World, Huobi Responds to MT.GOX Situation| Situation in China | Says USD and LTC on Huobi is in works

http://forexmagnates.com/exclusive-interview-ceo-of-largest-bitcoin-exchange-in-the-world-huobi-responds-to-mt-gox-situation/
** "Does your company have a global expansion plan or will you stay a China-only business?**
Huobi definitely has a global expansion plan and USD exchange will be the most critical part of it. But before we go global, we need to first strengthen our stand in China and maintain our leading advantage as well as building up our competitive edge.
Huobi’s trading volumes have surpassed all other exchanges and it is now the biggest exchange in the whole world. How many users trade on an average day to generate such high volumes and how do you explain the unusually high numbers?
Having large volumes is related to our no-exchange fee strategy. Besides, China is a huge Bitcoin mining country and also a country of more hot money. These are all our advantages. As to the question “How many users trade on an average day?” It involves our website operating data and I cannot give the exact number to you. It is over ten thousand. And this number, compared to the vast population of China, is still very small. Therefore there should be more space to grow.
Are any of your clients actually using Bitcoin for shopping or is it all speculators at this time in your view?
Currently in China, Bitcoin is not allowed to enter the circulation and used as currency. Therefore most of Bitcoin traders in China are investors.
A lot of people outside of China fail to understand the current legal situation regarding Bitcoin in your country, please explain how you see it.
The Chinese government policy of Bitcoin is clear: they do not accept Bitcoin as currency and do not allow Bitcoin to enter the market circulation as value marker or payment method. However, the government allows Chinese citizens to consider Bitcoin as investment to be invested and traded freely. At the same time, the Payment and Settlement Department of the People’s Bank of China (Editor’s note: the Chinese Central Bank) specifies that third-party payment companies in China cannot provide Bitcoin payment and settlement service in RMB.
This is the well announced policy in China. As to how the Bitcoin policy will be in the future, it is highly unpredictable.
When do you plan to offer other popular currencies such as Litecoin, Dogecoin or any others?
We’ll evaluate the virtual currencies’ general market value and its circulation to decide whether to include them. Litecoin is in our plan. We need more observation of the situation of Dogecoin.
** Have you ever encountered something like the bug MT.GOX claims and what do you think about the situation?**
Wallets sometimes experience small technical problems, but all of them can be fixed and thus won’t cause large-scale withdrawal problem. We are aware of the technical problem that Mt. GOX raised and our Technical Department is working on the details."
submitted by FixPUNK to BitcoinMarkets [link] [comments]

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse? Would such a thing affect Eth prices?

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse? Would such a thing affect Eth prices? submitted by kivo360 to ethtrader [link] [comments]

Bitcoin mentioned around Reddit: [Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mZdqdT2T0J /r/newstweetfeed

Bitcoin mentioned around Reddit: [Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mZdqdT2T0J /newstweetfeed submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mzzK67PkcV

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mzzK67PkcV submitted by jeff98379 to newstweetfeed [link] [comments]

The CEO of MT.Gox, on of the largest Bitcoin exchanges, resigns from Bitcoin foundation. Tune it to see whether this is good news or not.

Ok, IT'S ACTUALLY GOOD NEWS.
To provide a little background, anyone following Bitcoin has probably heard about the problems Mt.Gox has been having with their site. Several days ago they halted all transactions. Apparently there is a problem with their code, but Mt.Gox has blamed problems in the Bitcoin protocol. This has led to some pretty hilarious protests.
Last night it was announced that the CEO of Mt.Gox is resigning from the Bitcoin foundation. Many suspect this is going to precede some bad news about Mt.Gox. It's 8:30am EST so that news might be coming soon.
Anyway, let's see what Reddit's reaction to this is:
This is actually good news. I applaud Mark and the MtGox team for making the right decision as I had to do the same. Speaking very lengthy to Mark and the team over the weekend, I see good news on the horizon for people who have funds stuck in MtGox (I also have funds in MtGox stuck) - Charlie +161
Last night I saw this thread and I left it open to maybe write a CB post this morning. At the time, several of the top posts were people saying "this is actually good news!" sarcastically. I was wondering if /bitcoin was becoming a little self aware! Well, I guess not, the 2nd top post is a genuine "this is actually good news" post.
What's also notable is that this post is from Charlie Shrem, who was recently arrested for being involved with Silk Road. He's also the "bitcoin gonna topple gubmits revolution is coming" types.
This is actually good news +61
In all seriousness, it is ... Remember: Bitcoin is a honey badger. This will not kill Bitcoin, it will make it stronger. The demise of poorly run institutions such as Gox will have a negative short term effect upon the economy, but such Darwinism will be good for us in the long term. +30
There's the sarcastic post I was talking about. What's notable is that the top reply to it is serious.
Once again, who had the bad news before the rest of us? Who knew to dump? +28
Inside trader worries are floating around. It's fun to watch Bitcoin invent financial regulation piece by piece, as they discover what each piece is for.
Thanks to everyone who signed the petition. Really pleased with the result today.
WE DID IT REDDIT!
The drama from this is spilling into different posts. Here's one about them deleting their tweets
How will MtGox removing a few thousand "Dear Customer blah blah" tweets in any way whatsoever help their legal defence?
...Someone in that cluster fck of a company said to underlings "SHRED IT, SHRED IT ALL!!! AND DELETE ALL THOSE FCKING TWEETS!" Or something like that, we don't know. We do know, however, that the tweets are gone. And I can think of very very few legit reasons to issue that order. So yeah, it raises some eyebrows. It's not sensationalism, it's deductive reasoning. It might be wrong, but you can bet there is some reason we are not aware of that they did this.
le genius redditor using le deductive reasoning :o)
I wonder if he considered that deleting tweets as an effort to get rid of evidence would be laughable, since it's pretty certain that twitter retains a copy that could be subpoenaed. Or, you know, since it's been publicly displayed it has certainly been archived elsewhere. And that plenty of users probably retweeted them...
Makes me think that they deleted the tweets to make it more difficult for anybody to mount a legal case against them when this shit hits the fan. By removing the public tweets, the only way to get them is by a court ordered request to twitter which takes time and resources. Time that Gox can use to build a defence or flee. This move was probably done on advice from a lawyer.
Bad law is all over this thread
They're absolute masters at market manipulation, just see the mad panic sells and buys every time Gox farts.
This is actually just an epic ruse to manipulate the market even further!
It'll be ok... unless you are so overexposed that short term price shocks can hurt you. (or if you had all your coins in MtGox... which is really silly). I feel like a war-torn veteran.
Since bitcoin is going to the moon in the longterm, this doesn't really matter.
Has anybody saved their tweets and public statements?
nsa did.
yawn
The is the WSJ article from the first post that was pirated
WSJ: TAKE BITCOIN ON YOUR PAYWALL!
Just google the first few lines - the resulting link has no paywall. [Gilded]
Guess it cool to steal WSJ articles because they don't take magic internet money.
This is good news. Less duty in the foundation allows for focusing on Mt.Gox - like Roger Ver said.
:)))
This is actually bad news. MTGox withdrawing from the bitcoin community? -11
How is this bad news? All they have done is shit on the Bitcoin protocol for weeks, and I can't think of any good they have done. +6
LOL, Jesus Christ /bitcoin. Anyone that thinks a piece of bad news is actually bad news gets downvoted into the fucking dirt. POSITIVE INTERPRETATIONS OF BITCOIN NEWS ONLY!
That's about it for now. Some big Mt.Gox news is sure to break soon. It's going to be catastrophic, so GOOD NEWS!
submitted by ONE_GUY_ONE_JAR to circlebroke [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/fnLdZZsX0A

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/fnLdZZsX0A submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/bHZ0o75VQn

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/bHZ0o75VQn submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/dz1P1FXN6g

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/dz1P1FXN6g submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] RT @crypto: The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer https://t.co/bjEvQVLZHL h…

[Bloomberg Business] RT @crypto: The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer https://t.co/bjEvQVLZHL h… submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he is no longer is a Bitcoin believer… https://t.co/UyyqfsThXV

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he is no longer is a Bitcoin believer… https://t.co/UyyqfsThXV submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/pjQHc6VJ8h

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/pjQHc6VJ8h submitted by jeff98379 to newstweetfeed [link] [comments]

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mZdqdT2T0J

[Bloomberg Business] The former CEO of the once-largest Bitcoin exchange, Mt. Gox, says he no longer is a Bitcoin believer… https://t.co/mZdqdT2T0J submitted by jeff98379 to newstweetfeed [link] [comments]

The CNN website (top hit for a Google search of 'What is Bitcoin') still shows Mt. Gox as being the largest exchange.

The CNN website (top hit for a Google search of 'What is Bitcoin') still shows Mt. Gox as being the largest exchange. submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse

Is The World's Largest Bitcoin Exchange Headed For A Mt. Gox-Style Collapse submitted by BitcoinAllBot to BitcoinAll [link] [comments]

TIL Mt. Gox, the largest and possibly most famous exchange for BitCoin, started as an online exchange for Magic: The Gathering playing cards. The name is actually an acronym for "M"agic: "T"he "G"athering "O"nline e"X"change.

TIL Mt. Gox, the largest and possibly most famous exchange for BitCoin, started as an online exchange for Magic: The Gathering playing cards. The name is actually an acronym for submitted by wejustfadeaway to todayilearned [link] [comments]

Ep 9: The Rise and Fall of Mt. Gox Mark Karpeles Pockets $859 Million After Mt. Gox Bankruptcy Mt GOX What Really Happen?  Biggest Bitcoin Heist TheRealBio - YouTube Mt. Gox: Solving the Mystery of Bitcoin’s Biggest Disaster I Fortune

Mt. Gox was the largest Bitcoin exchange as of February 2014, handling over seventy percent of all transactions. It was launched on July 2010 and operated out of a humble building in Tokyo, Japan. It began as the brainchild of Jed McCaleb as a means of selling Magic the Gathering Trading Cards in a way that was similar to the way stocks are sold, but after seeing the potential of Bitcoin, he Mt. Gox was a cryptocurrency exchange that operated between 2010 and 2014. Mt. Gox once accounted for over 70% of all bitcoin transactions. In 2014, Mt. Gox was hacked and declared bankruptcy. At the beginning of 2014, Mt Gox, a bitcoin exchange based in Japan, was the largest bitcoin exchange in the world, handling over 70% of all bitcoin transactions worldwide. By the end of February of that year, it was bankrupt. Anyone who was using Mt. Gox lost access to their assets, and it has been a cautionary tale for crypto investors. Launched in 2011, Mt. Gox was the world’s largest bitcoin exchange, handling up to 70% of bitcoin trades, until its spectacular demise in 2014. Mt.Gox was a bitcoin exchange based in Japan in July, 2010. By 2013 it was the largest Bitcoin exchange in the world. It was plagued by difficulties from relatively early on and famously imploded in 2014. To this day, Mt. Gox is the source of many internet crypto memes.

[index] [14503] [8721] [28240] [30861] [17504] [3483] [2015] [24242] [7587] [22501]

Ep 9: The Rise and Fall of Mt. Gox

One of the largest online exchanges for Bitcoins, a digital cryptocurrency "mined" by computers, has closed down amid allegations of theft. The founder of the Tokyo-based Mt. Gox website admitted ... Mt. Gox, once the world's largest bitcoin exchange, is now offline after losing about $350 million to a two year-long hack that went undetected by the company. Mt. Gox’s Mark Karpelès is dedicating his life to righting the wrongs of his company’s collapse in 2014. ... Solving the Mystery of Bitcoin’s Biggest Disaster I Fortune Fortune Magazine ... Mark Karpeles, former CEO of Mt. Gox, is expected to profit $859 million from the company’s bankruptcy. In 2014, Mt. Gox was the largest bitcoin exchange in the world, handling over 70% of all ... Mt. Gox was the largest bitcoin exchange in the world. It was processing over $15 million a day in transactions. But suddenly, without warning, the website went down. The CEO said the bitcoins ...

Flag Counter