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Bitcoin Community Gangs Up On "Bad Actor" As Mt.Gox Site (And Feed) Disappears

Tyler Durden's picture


UPDATE: Mt. Gox website and feed is now offline

Much as we are not surprised, given our previous discussion of the end of major Bitcoin exchange Mt. Gox, this evening's release by Coinbase must be the final nail in the final coffin of the Tokyo-based firm...

The purpose of this document is to summarize a joint statement to the Bitcoin community regarding Mt.Gox. ... As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today. 

And scene...



Via Coinbase blog,

The purpose of this document is to summarize a joint statement to the Bitcoin community regarding Mt.Gox.

This tragic violation of the trust of users of Mt.Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants.  As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.  

We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that bitcoin offers as the future of payment in the Internet age.

In order to re-establish the trust squandered by the failings of Mt. Gox, responsible bitcoin exchanges are working together and are committed to the future of bitcoin and the security of all customer funds. As part of the effort to re-assure customers, the following services will be coordinating efforts over the coming days to publicly reassure customers and the general public that all funds continue to be held in a safe and secure manner: Coinbase, Kraken, BitStamp, Circle, and BTC China.

We strongly believe in transparent, thoughtful, and comprehensive consumer protection measures. We pledge to lead the way.

Bitcoin operators, whether they be exchanges, wallet services or payment providers, play a critical custodial role over the bitcoin they hold as assets for their customers.  Acting as a custodian should require a high-bar, including appropriate security safeguards that are independently audited and tested on a regular basis, adequate balance sheets and reserves as commercial entities, transparent and accountable customer disclosures, and clear policies to not use customer assets for proprietary trading or for margin loans in leveraged trading.

The following industry leaders stand by this statement:


Fred Ehrsam — Co-founder of Coinbase

Jesse Powell — CEO of Kraken

Nejc Kodric — CEO of Bitstamp.net

Bobby Lee — CEO of BTC China

Nicolas Cary — CEO of Blockchain.info

Jeremy Allaire — CEO of Circle


Interestingly, Coinbase's original title of their post was a little more aggressive...

which contained this line...

This is the first public declaration that the exchange — which has been facing major issues in terms of allowing users to withdraw funds — is insolvent.

which was rapidly removed and replace with this less aggressive one...



We thought this "new logo" for Mt.Gox summed it all up...


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Mon, 02/24/2014 - 23:26 | 4473811 statelessman
Mon, 02/24/2014 - 23:28 | 4473822 statelessman
statelessman's picture

Believe what you want.

Mon, 02/24/2014 - 23:31 | 4473835 Unpopular Truth
Unpopular Truth's picture

The whole thing is very sad

Mon, 02/24/2014 - 23:32 | 4473839 statelessman
statelessman's picture

No doubt about it.

Tue, 02/25/2014 - 00:12 | 4474006 Soul Glow
Soul Glow's picture

I don't give a fuck -  Still got my silver in hand!

I don't count on anything I can't get my hands on, women included.

Tue, 02/25/2014 - 00:15 | 4474023 fonestar
fonestar's picture

Buh-bye Gox and see you in hell.  Your embarassment of the Bitcoin is over!


Tue, 02/25/2014 - 00:26 | 4474052 macholatte
macholatte's picture




The Pony botnet has affected an estimated 700,000 people or computers, allowing the criminals to control those accounts.

The scheme 'collected approximately $220,000 worth, at time of writing, of virtual currencies such as Bitcoin, LiteCoin, FeatherCoin and 27 others,' said a blog post from researchers Daniel Chechik and Anat Davidi.

Cyber thieves blamed for Bitcoin heist



Tue, 02/25/2014 - 06:57 | 4474490 spine001
spine001's picture

IMHO Mt Gox was not a scam. If it had been, they wouldn't have taken a month to validate me before allowing me to buy bitcoins. Thanks to their delay, I was saved from this debacle. But what scammer would delay customer validation for a month if they need cash, no honest PONZI scheme would :)

Mt Gox was attacked by very sophisticated people and taken down. Who has the most sophisticated hackers in the world? Simple: "China". Who just a few months ago forbade the use of Bitcoin? China. So, I'm suspicious.

Tue, 02/25/2014 - 07:22 | 4474518 Moe Howard
Moe Howard's picture

You had to be a Jew to get in Bernie Madoff's special investing club.

I don't get your point that you couldn't get in, so it was not a scam...

Tue, 02/25/2014 - 07:30 | 4474530 Supernova Born
Supernova Born's picture

I now get why Fonesex lasted so long.

He was the Wicker Man of Bitcoin.

Burn, Fonesex, burn.

Tue, 02/25/2014 - 07:57 | 4474572 MagicHandPuppet
MagicHandPuppet's picture

Aaaaand, it's gone!

Tue, 02/25/2014 - 10:14 | 4474926 Musashi Miyamoto
Musashi Miyamoto's picture

I might feel bad for the bagholders but I traded like God's Prophet this entire week and now I'm up like 300% on my active positions... I only wish i put it all in on this crash...

This had a long time coming... to the suckers... you shoulda pulled from gox, at least 6 months ago when they started delaying cash withdrawals...

and now on to more trading and more money...

Tue, 02/25/2014 - 10:14 | 4474927 bwh1214
bwh1214's picture

Well though there were some interesting points to bitcoin it is on the way down. Hey, some of your diehard fans may ride it all the way down. I wish you would have listened last month to all those that said it wasn’t invincible. It is not bitcoins fault, it is being attacked just like precious metals, but the result will be far worse than even those that bought silver at the top. If you bought bitcoin at 1100 plus the losses are already worse than if you bought silver at 44+. Currently ex the Magic the Gathering Exchange, lets not give it any more legitimacy then it deserves, bitcoin is trading in the 480’s with a defined trend line down.  I just wish all, I'm sure a small fraction did, would have sold over 1000 and bought gold and silver.  It really is the only way to fight back.

Tue, 02/25/2014 - 10:21 | 4474952 Bendromeda Strain
Bendromeda Strain's picture

We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that bitcoin offers as the future of payment in the Internet age.

Anybody else notice that the reputable Bitcoin spokemen still sound exactly like douchebag con men bankers? I heard the same tripe after banks crashed in '08.

Tue, 02/25/2014 - 11:01 | 4475102 fonestar
fonestar's picture

fonestar is going to get some CheapCoins off localbitcoins.com today and highly recommends you do the same!

Tue, 02/25/2014 - 11:05 | 4475122 tmosley
tmosley's picture

I agree.  Now is a good time to buy as the FUD is at maximum overdrive.  With Mt. Gox bankrupt, the fundamentals of increasing adoption should take over once again.

Tue, 02/25/2014 - 11:17 | 4475199 TheMeatTrapper
TheMeatTrapper's picture

Ryan Galt, a Bitcoin blogger, wrote a post expressing his fear that this could be a fatal blow.

"This is catastrophic, and I am sorry to share this," he wrote. "I do believe that this is one of the existential threats to bitcoin that many have feared and have personally sold all of my bitcoin holdings through Coinbase."



Even the Bitcoin faithful are jumping ship. 

Tue, 02/25/2014 - 11:32 | 4475305 fonestar
fonestar's picture

Ryan Galt, right... did it ever occur to you this guy is a fake and perhaps part of the same GCHQ opposition in the above posted article?  Mtgox's decline didn't come as a surprise to very many people in the Bitcoin community.

Tue, 02/25/2014 - 10:09 | 4474913 TheCanadianAustrian
TheCanadianAustrian's picture

No, Mt. Gox was not a scam. It was an incompetent bank, and nothing more. And in the Bitcoin world, incompetent banks and their depositors don't get bailed out. Isn't this a better alternative than the TBTF world we all live in?

Tue, 02/25/2014 - 00:27 | 4474058 Grande Tetons
Grande Tetons's picture

Hell is too crowded...nobody goes there anymore. 

Tue, 02/25/2014 - 00:53 | 4474138 maskone909
maskone909's picture

Fuck bitcoin and maxkeiser too. It was only good when u could buy drugs online. Cant even seem to do that anymore. Thanks alot nerds

Tue, 02/25/2014 - 01:01 | 4474176 fonestar
fonestar's picture

What are you talking about?  fonestar is still buying lots of drugs online with Bitcoin.

Tue, 02/25/2014 - 01:02 | 4474179 maskone909
maskone909's picture

Where?? Everythig is busted by the feds

Tue, 02/25/2014 - 01:25 | 4474216 TruthInSunshine
TruthInSunshine's picture

fonestar, stock up on your lithium - as much as you can stockpile - while you still can.

Tue, 02/25/2014 - 01:40 | 4474239 Soul Glow
Soul Glow's picture

The first thing to stock is soul.  Make sure you got calm; get collected, what's about to happen will shock all souls, nevermind the average Joe - he will probably die from it (I'm being litteral).  When someone is told to do something they know they can't, they fold.  It is as simple as that.

Get ready to work, for your cash empire has burned in flames!  All we have is the land and people around us.  You have yourself.  Get ready to move.

Tue, 02/25/2014 - 06:10 | 4474457 The Final Countdown
The Final Countdown's picture

That explains everything...

Tue, 02/25/2014 - 07:34 | 4474523 silvermail
silvermail's picture

"fonestar is still buying lots of drugs online with Bitcoin."

I always suspected that "fonestar" - is the name of some an illness or of some medical diagnosis of the clinical psychiatry.

Yes, antidepressants will surely be help you in this difficult for you situation.

Tue, 02/25/2014 - 07:42 | 4474546 samcontrol
samcontrol's picture

i think he is just so fucking stupid and locked up that he actually buys his dope instead of growing it. hope they piss on it.

to change the subject as he always does.

Option of he day.
Buy sdrl calls at the open.

Tue, 02/25/2014 - 09:36 | 4474804 Silveramada
Silveramada's picture

you mean for your meth & crack morning cocktail before posting on zh?

Tue, 02/25/2014 - 10:50 | 4475053 fonestar
fonestar's picture

and some dextromethorphan-hydrobromide and 2CB.

Tue, 02/25/2014 - 04:08 | 4474389 Dane Bramage
Dane Bramage's picture

"Confidence is a thin membrane".  

Tue, 02/25/2014 - 09:34 | 4474793 Silveramada
Silveramada's picture

indeed... when are we going to see the first BTC REHAB CLINIC???  AH HAH  HAH AHAH H A

Mon, 02/24/2014 - 23:33 | 4473844 StacksOnStacks
StacksOnStacks's picture

Mtgox.com is down and price is dropping on btc-e. Soooooooooooo glad I'm out of this.

Mon, 02/24/2014 - 23:39 | 4473862 wallstreetapost...
wallstreetaposteriori's picture

Yeah Foneystar just keeps losing his get rich quick scheme!  Reality hoe...its whats for dinner.

Mon, 02/24/2014 - 23:44 | 4473883 dark pools of soros
dark pools of soros's picture


Tue, 02/25/2014 - 00:03 | 4473957 fonestar
fonestar's picture


Tue, 02/25/2014 - 00:14 | 4474013 Soul Glow
Soul Glow's picture

Bitcoin is a currency.  Money is gold.

Currencies come and go; money stays and plays.

Tue, 02/25/2014 - 00:17 | 4474029 fonestar
fonestar's picture

Bits are money and everything else is bullshit!

Tue, 02/25/2014 - 00:54 | 4474143 TheHound73
TheHound73's picture

Money is a concept.  Gold is an atomic element many people use as money.

Tue, 02/25/2014 - 01:05 | 4474186 Soul Glow
Soul Glow's picture

Money is absolutely a concept, that which only gold satisfies.

Tue, 02/25/2014 - 01:11 | 4474197 TheHound73
TheHound73's picture

Define: Money...

Tue, 02/25/2014 - 01:21 | 4474203 Soul Glow
Soul Glow's picture

Can't be burned in a furnace; exists from physics.

Tue, 02/25/2014 - 01:24 | 4474212 TheHound73
TheHound73's picture

Looks like you've got your concept all figured out then.  Carry on.

Tue, 02/25/2014 - 01:38 | 4474236 fortune114
fortune114's picture

Durable, divisible, transportable, and *has intrinsic value*

(See: Aristotle)

Bitcoin good on the first three, fails on the last.  Just like fiat.  And just like fiat you can create an infinite amount of cryptocurrency. 

Tue, 02/25/2014 - 02:25 | 4474306 TheHound73
TheHound73's picture

Gold is so-so transportable, so-so divisible with "intrinsic value" deriving from industrial uses and jewelry?

Tue, 02/25/2014 - 11:54 | 4475423 Toolshed
Toolshed's picture

The bitcoin cultists desperation comes to the surface for all to see when they are forced to employ such absurd defenses as can be seen throughout this thread.

Tue, 02/25/2014 - 12:09 | 4475503 TheHound73
TheHound73's picture

Taste the Rainbow!

Tue, 02/25/2014 - 02:49 | 4474330 pbppbp
pbppbp's picture

No, you cannot create an infinite amount of btc.

Tue, 02/25/2014 - 05:48 | 4474445 Harlequin001
Harlequin001's picture

That's not what he said is it?

Do NOT follow this link or you will be banned from the site!