This page has been archived and commenting is disabled.

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...

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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!

Buh-bye!!

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

http://www.skynews.com.au/businessnews/article.aspx?id=953184&vId=

 

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."


http://www.latimes.com/business/technology/la-fi-tn-mt-gox-collapse-threatens-to-bring-down-bitcoin-economy-20140225,0,2841826.story#ixzz2uLaguhRu

----------------

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 - 07:47 | 4474553 negative rates
negative rates's picture

Which is different from your embarassment that last forever!

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

BTFD!!!!

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

FUCK YEAH!!  TWO BITCOIN ARTICLES IN ONE DAY!!

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?

Tue, 02/25/2014 - 07:48 | 4474555 silvermail
silvermail's picture

"No, you cannot create an infinite amount of btc."

Why? Because there is some concept invented by some people? It's very funny. Any concept invented by people, can be changed at any moment by these people or others. If all participants of bitkoin will vote, then via by a majority vote, the volume of bitkoin on the market will be increased.
Please try to increase the volume of gold on the market, by a majority vote. LOL

Tue, 02/25/2014 - 10:49 | 4475049 Citxmech
Citxmech's picture

Competing alternative cryptocoins also act as a form of dilution.

Tue, 02/25/2014 - 11:04 | 4475118 TheHound73
TheHound73's picture

Soaking up commerce into cryptocurrencies, Bitcoin can deal with some dilution.  Follow the hashrate, son.

Tue, 02/25/2014 - 11:33 | 4475310 Sonic the porcupine
Sonic the porcupine's picture

Totally agree Citxmech. I don't understand the bitcoin math/algorithm enoungh to say for sure that there will never be more than just under 21 million coins. But if I take the bitcoin community at their word, it still doesn't matter if there are only ever 21 million BTC, because of all the altcoins: Litecoin, auroracoin, namecoin, etc etc etc.

Tue, 02/25/2014 - 11:10 | 4475156 tmosley
tmosley's picture

Except the stakeholders would never agree to that.

That would be like trying to get a majority of shareholders in a company to vote to issue more shares when they could just do a stock split (btc is already divisible).  And if bad actors get in there and try to rig the vote, BTC will simply fork, leaving the bad actors with their shitty version that no-one cares about anymore.

Tue, 02/25/2014 - 03:06 | 4474343 TheReplacement
TheReplacement's picture

Hmm, btc durable?  Electric, internet, access... btc relies on all three.  None are guaranteed.  Gold will always be. 

Tue, 02/25/2014 - 11:08 | 4475140 TheHound73
TheHound73's picture

That's why you diversify.  That's kinda a big word, diversify, but in simpler terms it means "to invest in different types of securities, industries, etc."  For a grid-down situation you diversify into gold.  For the rest of the time you aren't using gold to buy and sell goods now are you?  What are you using?

Tue, 02/25/2014 - 11:13 | 4475172 tmosley
tmosley's picture

Gold relies on access and safety from theives.  What's your point?

If the internet or electricity is turned off, then you have bigger problems than spending your bitcoins.

In any event, when the power comes back on, your bitcoins are still there.  Hell, when you fleed the country that has been shut down, you will find your bitcoins waiting for you where ever you land.

Tue, 02/25/2014 - 01:09 | 4474192 NoDebt
NoDebt's picture

Fonestar, seriously, hang up your skates.  I'm sorry.  I really am.  Bad timing, fate, whatever..... you showed up just as your entire pimp world was changing.  Sure, Bitcoin will survive without MtGox to a certain extent.  Sure, some of what you say is true.

Doesn't matter.  Your credibility is shot.  Wrong message at the wrong time.  Your goose is cooked.  Get a new screen name and a new talk track and start over.

Even MillionDollarBonus_ was at least entertaining while he annoyed everyone.  He could come back here today and pick up where he left off.  You can't.

 

Tue, 02/25/2014 - 01:36 | 4474234 fonestar
fonestar's picture

Bitcoin will survive to an extent?  What a moron.  Bitcoin is just getting started as is fonestar!

Tue, 02/25/2014 - 01:41 | 4474241 Soul Glow
Soul Glow's picture

You suck at writing.

Tue, 02/25/2014 - 02:03 | 4474272 fonestar
fonestar's picture

You suck at existence.

Tue, 02/25/2014 - 07:11 | 4474503 Supernova Born
Supernova Born's picture

You burned briefly and...well, briefly.

Tue, 02/25/2014 - 09:51 | 4474858 HyBrasilian
HyBrasilian's picture

How is it even possible to argue with that synthesis from a guy named Supernova? :-)

Tue, 02/25/2014 - 07:13 | 4474505 JoBob
JoBob's picture

Fonestar refers to Fonestar in the third person. Something is not right about that kid....

Tue, 02/25/2014 - 07:47 | 4474554 Citium
Citium's picture

LOL

"Bitcoin will survive to an extent. Love that vaguenesss. It also has a chance to survive like a beanie baby or a furby.

Tue, 02/25/2014 - 07:38 | 4474541 Citium
Citium's picture

Bitcoin Troll fabnon of the year!!!!

 

2014: king of bubbles. I am not tootin my own horn but i called the highes exaclty for May and December.

 

You almost won worst hair icon but the aliens dude from the history is in like a 5 year streak. 

Tue, 02/25/2014 - 07:51 | 4474562 negative rates
negative rates's picture

You come from a very bad world, and will soon find yourself in a very sad state.

Tue, 02/25/2014 - 08:08 | 4474584 silvermail
silvermail's picture

"Bits are money and everything else is bullshit!"

Fonestar, some patients think differently. They are convinced that:

"Cotton swabs are money and everything else is bullshit!"


Tue, 02/25/2014 - 11:20 | 4475218 TheMeatTrapper
TheMeatTrapper's picture

"Bits are money and everything else is bullshit!"

That's dumbest damn thing that has ever been posted on this site. Ever. 

You truly are an attention whore. Why do you feel the need to act like the class clown to get attention? 

Tue, 02/25/2014 - 00:14 | 4474014 Exponere Mendaces
Exponere Mendaces's picture

@fonestar

I see ZH is doing the usual advertising-bait article on Bitcoin again. Gox may have been bought out, as the domain was transferred not long ago. The communication is horrendous, as usual. Worst case scenario is the exchange is dead - which isn't a surprise, and eveyone has to pile on to get their funds.

Everyone in the Bitcoin trading ecosystem knew Gox was stumbling when they started to delay sovereign currency transfers, their reasoning about volumes never made sense at all. So, upward and onward. The Bitstamp price took a hit, but its currently retrenching and working out of the 500's currently.

All in all, this is what should happen in any given system - if you fuck up, you FAIL. No bailouts, no TARP, QE-INFINITY or any of that shit. Every Bitcoin holder isn't being penalized for one exchange fucking up, and that is as it SHOULD BE.

It was fun Gox, but you've got to die.

Tue, 02/25/2014 - 00:20 | 4474041 fonestar
fonestar's picture

fonestar agrees and excellent point btw, Bitcoin is a true "survival of the fittest" game.  If you open a Bitcoin exchange you are going to have all of the world's most sophisticated hackers targeting you.

Tue, 02/25/2014 - 00:32 | 4474076 Crash Overide
Crash Overide's picture

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

 

Until they don't...

Tue, 02/25/2014 - 00:46 | 4474117 silverserfer
silverserfer's picture

when did they ever?

Tue, 02/25/2014 - 00:56 | 4474150 dark pools of soros
dark pools of soros's picture

a year or so ago they used to still post inflows/outflows reports before things got real..  that might of been the time their system went south and they never fixed it

Tue, 02/25/2014 - 13:09 | 4475835 zuuma
zuuma's picture

" If you open a Bitcoin exchange you are going to have all of the world's most sophisticated hackers targeting you."

is that a feature?

or a bug?

Tue, 02/25/2014 - 09:47 | 4474843 sessinpo
sessinpo's picture

fonestar   If you open a Bitcoin exchange you are going to have all of the world's most sophisticated hackers targeting you.

 

fonestar keeps exposing more weaknesses in bitcoin

Tue, 02/25/2014 - 11:16 | 4475195 tmosley
tmosley's picture

>Implying they aren't already targeting banks and exchanges

Just like you don't store your silver with MF Global, you don't keep your bitcoins on an exchange.  Buy your shit then get it out quick.

Tue, 02/25/2014 - 07:36 | 4474537 silvermail
silvermail's picture

"FUCK YEAH!!  TWO BITCOIN ARTICLES IN ONE DAY!!"

Do not worry fonestar, it's just advertising.

Tue, 02/25/2014 - 10:32 | 4474988 Toolshed
Toolshed's picture

Yeah, bitcoin is indeed getting loads of press coverage atm..........all of it very, very bad. LOL!!!!

Tue, 02/25/2014 - 10:54 | 4475065 fonestar
fonestar's picture

All publicity for Bitcoin is good publicity.

Tue, 02/25/2014 - 11:48 | 4475382 Toolshed
Toolshed's picture

"All publicity for Bitcoin is good publicity."

That may be true for celebrity types, but not so much for currencies.........especially intangible currencies.

Mon, 02/24/2014 - 23:45 | 4473886 kodachrome
kodachrome's picture

Maybe people will stop using exchanges as a bank from now on.

 

Speaking of which, today marks the day that the first in person bitcoin bank opens...in... Cyprus no less.

No story about that yet Tyler?

Tue, 02/25/2014 - 00:11 | 4473985 Haole
Haole's picture

Neo & Bee and the long-awaited death of Empty Gox in one day.  Big day for BTC, BTChes.

Tue, 02/25/2014 - 02:03 | 4474274 shitco.in
shitco.in's picture

Neo & Bee CRUSHED it today... I would definitely take profits now because share prices seem to move inversely with BTC price (to preserve market cap).  

Tue, 02/25/2014 - 10:45 | 4474901 TheHound73
TheHound73's picture

Good call. Some asks I had set at double my cost executed today. HavelockInvestments.com

Tue, 02/25/2014 - 00:15 | 4474026 Exponere Mendaces
Exponere Mendaces's picture

@kodachrome

Feel-good stories don't bring in the advertising metrics, dont-cha-know. If it isn't about how you're fucked without a bunker or stacking metals in your root cellar, they aren't going to run it.

Tue, 02/25/2014 - 00:49 | 4474125 silverserfer
silverserfer's picture

sounds like your in need of a dose of Accredited Times. they got the shit you are looking for XPM.

Tue, 02/25/2014 - 04:10 | 4474391 Balanced Integer
Balanced Integer's picture

::cackle::

And fuck AT!!

Mon, 02/24/2014 - 23:45 | 4473890 Dr. Engali
Dr. Engali's picture

It'll come back...... Any day now........ Still waiting............. Any minute now,......

Tue, 02/25/2014 - 00:04 | 4473966 fonestar
fonestar's picture

$510 on BTC-e retard and if it goes to $450 I will backup the virtual truck.

Tue, 02/25/2014 - 00:10 | 4473999 Pool Shark
Pool Shark's picture

 

 

Too bad you can't afford a truck to backup...

 

Tue, 02/25/2014 - 00:54 | 4474142 Tom Servo
Tom Servo's picture

It's flirting with breaking $470, you might look into acquiring your truck....

 

Tue, 02/25/2014 - 01:59 | 4474269 TheHound73
TheHound73's picture

Oops, my bad.  Hope you got in on that dip.

Tue, 02/25/2014 - 00:11 | 4474003 Grande Tetons
Grande Tetons's picture

http://www.youtube.com/watch?v=RKQ3LXHKB34

Stick with the milkshake, kid. 

Tue, 02/25/2014 - 00:28 | 4474061 GrinandBearit
GrinandBearit's picture

Your get rich quick scheme is fading fast.

You're so desperate now it's so funny... I laugh in your face - LOL!

Tue, 02/25/2014 - 00:52 | 4474132 silverserfer
silverserfer's picture

Yeah I laugh in his face too, with morning breath. 

 

Tue, 02/25/2014 - 02:14 | 4474290 ElvisDog
ElvisDog's picture

I laugh in his face with that breath you get when you throw up and pass out and then sleep on the floor all night without brushing your teeth.....

Tue, 02/25/2014 - 00:52 | 4474131 johnQpublic
johnQpublic's picture

virtual truck robbed by seven ear old playing grand theft auto

Tue, 02/25/2014 - 08:15 | 4474595 Mentaliusanything
Mentaliusanything's picture

Fonstar is Fontas . No really... some things just bite you in the ass

Last year, I tried getting rich day trading alt coins. I didn't (I made about half a bit coin, and then spent most of it at about $100, meaning my $20 seedbox slot cost me $200 USD). There was basically only 1 guy doing most of the pump and dumping, named Fontas. You pretty much describe exactly his MO. I did a ton of research, and figured out that he was a rich teenager from Saudi now living in LA. He'd used his daddy's oil money to get into alt coins, was able to build a reuptation as a pumper, which gained him a following, so all he had to do was buy up his alt coin, and then announce the P&D. When everyone was scrambling to get in "before" the dump, he was actually dumping on his followers. (From Avile rats link below)

Tue, 02/25/2014 - 08:20 | 4474608 firstdivision
firstdivision's picture

http://www.reddit.com/r/litecoin/comments/1tt0jn/fontas_banned_from_btce/

Fonestar is Fontas, no doubt about that at all.  Will be interesting if he burns some people that have nothing to lose, or the type that take physical revenge. 

Tue, 02/25/2014 - 09:00 | 4474680 LapseOfReason
LapseOfReason's picture

"$510 on BTC-e retard and if it goes to $450 I will backup the virtual truck."

You claim this bit shit is going 7 figures, what's $60 in the grand scheme, back that shit up now fonestar. Fonestar says, Bole Dole says...give it up, dude.

Tue, 02/25/2014 - 10:29 | 4474976 Toolshed
Toolshed's picture

There are now 2 possibilities for bitcoin. Either it evaporates completely due to the great and widespread loss of faith, or it becomes controlled and regulated. If the latter happens, it becomes a typical, surcharged to cover the rugulatory cost, online payment system, where it will experience lots of existing competition. Stick a fork in it already.

Mon, 02/24/2014 - 23:51 | 4473896 aVileRat
aVileRat's picture

http://valleywag.gawker.com/wolves-of-bitcoin-figured-out-a-nice-little-...

Hopefully everyone has learned something from this bitcoin thing. Now comes that fun period of discovery where journalists pour over the corpse and write 'tell all' books. Some of which become movies, others become talkshow fodder.

On another note I am impressed at the 'integrity' of these bitcoin brokers. It only took them 2 years to turn on each other. It took 20 years for Wall St. to find a killshot for LEH after LTCM.

 

Tue, 02/25/2014 - 00:02 | 4473955 dark pools of soros
dark pools of soros's picture

It does amaze me that all the talk of 'go back to the old days' on ZH comments that a real wild west guard yourself and dont look for mommy type of world that bitcoin is would make you all you cry in your jammies

 

 

Tue, 02/25/2014 - 00:31 | 4474070 Tom Servo
Tom Servo's picture

I just looked at my stack of silver and ammo (too cold to go boating, until they send an icebreaker down the missouri river), and it's still there.... while I was reading this thread BTC hemmorrhaged $12!  Bitstamp.net ftw....

 

Tue, 02/25/2014 - 00:58 | 4474167 dark pools of soros
dark pools of soros's picture

And you probably still cant get your head around how high the price went up this year right??  Hows that silver from $48 when I sold?   We'll see how long it takes for both to get back to their ATH's right?

 

 

Tue, 02/25/2014 - 10:25 | 4474962 Toolshed
Toolshed's picture

You are clearly confused. What bitcoin is, was, and always will be, is a scam. The tip off was the fact that no one knows who wrote the original code, or why. Only morons would trust their money to such an obvious set up. I have an URL for a online banking site, which is completely anonymous and decentralized. It is totally safe and secure. No really. Just provide me with your personal info, including your bank account and routing numbers and I will set up an account for you. The accounts have a guaranteed 25% annual return!! Send me that info now before you miss out on this once in a lifetime opp!

Tue, 02/25/2014 - 00:19 | 4474039 Exponere Mendaces
Exponere Mendaces's picture

@aVileRat

You're witnessing a rarity in finance - letting something that is a complete failure actually FAIL. I know its shocking, after all, we've had nothing but a conveyor belt of "saving the institutions" since 2008, but it does happen where government can't fuck it all up.

Gox deserved to fail.

And now, they have. There it is - and not too much damage on the other exchanges, to boot. Like a forest fire, clears out the weeds and dead trees and lets something else flourish for a change.

Tue, 02/25/2014 - 00:30 | 4474067 Grande Tetons
Grande Tetons's picture

.....amd sometimes a wind carries a spark from said forest fire and burns down all the mother fucking trees in the adjacent forests. 

Tue, 02/25/2014 - 00:31 | 4474069 lordylord
lordylord's picture

Great way to look at it.  Less government and free markets means that someone isn't always going to be there to bail you out.  Some people gave their money to mtgox and they got burned.  That is part of life. 

However, letting bitcoin fail isn't anywhere close to letting a major bank fail.  You really shouldn't compare the significance of the two. 

Tue, 02/25/2014 - 06:40 | 4474444 Againstthelie
Againstthelie's picture

Sheeple do not learn.

What happens with Bitcoin @MtGox is full glory of Libertarian reality, nevertheless the sheeple will not recognize what happened was the result of the hailed libertarian principle of the jungle and NO state enforcing any rules. They will continue to eat the Austrian's school of economics propaganda to cover up the reality of PLUTOCRACIES and blame a "strong" state, although in fact Plutocracies are only the executioneers of the Money Masters and the 1% and in fact are very WEAK nation states.

Just like Communists also refuse to accept, that the genetic disposition has a huge impact on the homo sapiens, too and that people and races are NOT EQUAL so Libertarians also are unable to recognize big parts of reality. In some form it's mental illness just like Marxism.

Tue, 02/25/2014 - 00:02 | 4473956 Non Passaran
Non Passaran's picture

It does look fake.

Tue, 02/25/2014 - 22:55 | 4478641 statelessman
statelessman's picture
Mt. Gox CEO Says Leaked Documents More or Less Legit

 

http://www.coindesk.com/mt-gox-ceo-says-leaked-documents-less-legit/

Tue, 02/25/2014 - 00:01 | 4473953 Bunga Bunga
Bunga Bunga's picture

So many bitcoins got lost - good news!

Tue, 02/25/2014 - 00:36 | 4474087 Crash Overide
Crash Overide's picture

What if all but 1 Bitcoins are forever lost due to hardware failures, what happens then, decimal places?

Tue, 02/25/2014 - 02:46 | 4474327 Bunga Bunga
Bunga Bunga's picture

That 1 bitcoin will be sent to a golden shrine wallet and cryptonerds will pilgrim to that IP for the rest of their lives.

Tue, 02/25/2014 - 11:19 | 4475215 tmosley
tmosley's picture

Hardware failures?  You do know that you can print out your private key and keep it in your safe, right?

Hell, you can keep it on a thumbdrive or hundred.

Tue, 02/25/2014 - 07:21 | 4474515 Citium
Citium's picture

Well atleast I didnt take Fonestar's adince to buy this crap in its  high in Decemner.....

 

God fonestar trying to make mart an entitlement issue....

 

:}

Mon, 02/24/2014 - 23:26 | 4473812 Dear Infinity
Dear Infinity's picture

Blood in the streets.


Tue, 02/25/2014 - 00:09 | 4473993 ghengis86
ghengis86's picture

somebody please help me out here...how is an exchange insolvent?  Or were they just exchanging your money for some digital 'money'?

Tue, 02/25/2014 - 00:14 | 4474018 TheHound73
TheHound73's picture

It appears they were handing out multiple Bitcoin withdraws due to fraud on the part of the recipient and Gox's own incompetence.

Tue, 02/25/2014 - 07:55 | 4474571 heavy.metal
heavy.metal's picture

It's not an exchange, it's a bank. People made deposits denominated in several currencies, BTC being one of them. Probably all of them were leveraged as per fractional reserve banking model.

Does it make sense now?

 

Tue, 02/25/2014 - 10:17 | 4474932 Toolshed
Toolshed's picture

"It's not an exchange, it's a bank"

What it is, is an online Magic the Gathering trading card site. What did the bitidiots expect to happen? It would be like depositing all your money with the local comic book and baseball card store and expecting it to be safe. Who is surprised at this result?

Mon, 02/24/2014 - 23:27 | 4473814 Dr. Engali
Dr. Engali's picture

Et tu Brute?

Mon, 02/24/2014 - 23:28 | 4473825 TruthInSunshine
TruthInSunshine's picture

Yoda says:

-- "Mt. Gox'd, holders of bitcoin all will be."

Tue, 02/25/2014 - 00:21 | 4474031 playnstocks
playnstocks's picture

 "Don't Mt. Gox me bro!"

Mon, 02/24/2014 - 23:34 | 4473847 malek
malek's picture

It's all Bus^H^H^H Mt.Gox' fault!

Mon, 02/24/2014 - 23:27 | 4473817 williambanzai7
williambanzai7's picture

Hmmmm/ Looks like an invitation to regulation, because they certainly did not do the weeding in this instance...

Mon, 02/24/2014 - 23:46 | 4473892 dark pools of soros
dark pools of soros's picture

Mt Gox was garbage for a long time.. anyone who was still there were chasing high arb when funds were slow to get out and BTC highest.. now they got Goxxed for being greedy

 

screw em! 

Tue, 02/25/2014 - 00:06 | 4473974 CPL
CPL's picture

Coyote medicine can be bitter but it's always got a lesson but this did answer a question. 

Can the system react to cut a "dirty pool" node from network and systems resources to save the system?

Yes it did, which means it can deflect economic hijacking.

Self healing? 

That should only take a currency reevaluation.

Tue, 02/25/2014 - 00:04 | 4473964 seek
seek's picture

Gox really only took out the greedy and ill-informed. Not that either should have been affected, but anyone with even a little bit of savvy in bitcoin knew they were either shoddy or corrupt more than a year ago and avoided them.

Tue, 02/25/2014 - 00:21 | 4474036 ThroxxOfVron
ThroxxOfVron's picture

" there are certain bad actors that need to be weeded out, and that is what we are seeing today.

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."

 

1. Are they fucking kidding??!  Even FED cartel banks don't meet these conditions and we all fucking know it!

2. Did these other Bitcoin playas decide to destroy Mt. Gox or just that they have the authority to shit on them at this particular time.  Can these people see inside Mt. Gox and know the situation or is this document a form of cartel aggression?  WHo decided that it was time to 'pull this weed' and under what authority?

3. This sounds like straight up mobster shit.   Also very similar to the TBTF naked short selling Lehmen Brothers into oblivion and then crashing the MBS market to cash in on the derivatives insurance written at AIG by blackmailing Congress, etc....

4. Are there insurance contracts or derivatives bets on Mt. Gox or Bitcoin itself.  -paging Reggie Middleton...

5. How is Mt. Gox different than MF Global if the customer funds were sucked out; and whatfucking good did all the FED wire oversight, security safeguards, independent auditors, regulations and the rest matter to Corzine and Dimon and the Feds?

Mon, 02/24/2014 - 23:31 | 4473829 godzila
godzila's picture

Not quite sure what the problem is here ? Indeed MtGox did some pretty questionable (to say the least) actions. Care to elaborate ? If you can't get your money back back sounds pretty much insolvent to me...

Mon, 02/24/2014 - 23:33 | 4473841 yepyep
yepyep's picture

mt gox is meeting the fate the degenerate financial institutions on wall st should have met 5 years ago.

 

free market at work.

Mon, 02/24/2014 - 23:47 | 4473900 dark pools of soros
dark pools of soros's picture

exactly... TARP was voted down and it was bliss...  but then the evil swept the land with bribes and fear

Tue, 02/25/2014 - 00:05 | 4473971 seek
seek's picture

Bingo! Let corruption die its well-earned death already.

Tue, 02/25/2014 - 00:21 | 4474045 Exponere Mendaces
Exponere Mendaces's picture

@yepyep

Yes, absolutely.

All this means is Bitcoin continues and a shitty exchange goes into the history books. This doesn't damage anything long-term, at all. Failure is healthy if you let the shit that doesn't work fucking die.

Tue, 02/25/2014 - 00:58 | 4474161 yepyep
yepyep's picture

yeah, this is good news as far as im concerned, survival of the fittest like this creates innovation. Yes the price has taken a hit, but it once dropped from $266 to $90 in like 2 days, i wasnt worried them and im even less worried now.

If the financial institutions in the current fiat paradigm were subject to the kind of market forces that bitcoin exchanges currently are, then the US would not have piled on however many trillion more in public debt since 2008 and the world would not be in the financial quagmire it is in.

if you are surprised or scared by bitcoin volatility then you dont understand whats going on and might be better advised sitting safely in gold and silver (which is never a bad move)

 

Tue, 02/25/2014 - 07:14 | 4474506 spine001
spine001's picture

I'm surprised that NOBODY here is talking about the backbone that supports mining bitcoins and bitcoin transactions. Basically the economics don't work any  more for mining at this bit coin price. People using the latest and most efficient Hashers will loose money, since the electricity cost will be higher than the payout they get in bitcoin. Those miners (I'm one of them) will stop mining until they don't loose money any more (can only happen if electricity costs go down or if bitcoin goes up). And please remember that complexity keeps on going up, thus increasing the cost of mining.

Bitcoin is NOT economically sustainable at this prices. All other discussion is BS. Sorry.

Don't trust me, go check some of the many bitcoin calculators available on the net!

 

Tue, 02/25/2014 - 10:12 | 4474917 Toolshed
Toolshed's picture

spine001, you sound reasonably intelligent. Based on what just happened to Mt.Gox, and what happened to Silk Road 2.0 a few weeks agao, wouldn't the intelligent thing be to cash out of bitcoin NOW!!! It seems likely that both sites failures were inside operations by the admin staff. I guess the opportunity to steal millions of dollars worth of bitcoins, with virtually no possibility of being punished or held liable for your theft, was too much of a temptation for the mere humans involved. It will be interesting to see which exchange vanishes with all it's clients bitcoins next. Reggie Middleton needs to bring that trust in a big hurry!! Where is that rascal anyway? He seems awful quiet here lately.

Tue, 02/25/2014 - 10:58 | 4475090 Saro
Saro's picture

As miners drop out of the network, the difficulty of mining goes down, making it easier for those remaining to mine, increasing their profits, and attracting new miners.

The system equalizes.

Tue, 02/25/2014 - 11:39 | 4475337 Sonic the porcupine
Sonic the porcupine's picture

There are market forces that will ensure mining is profitable. Plus there are transaction fees that miners collect.

Tue, 02/25/2014 - 12:15 | 4475536 TheHound73
TheHound73's picture

Those who can afford to will hoard bitcoins until their price targets are reached.  Others will just stop mining.  Sounds kinda familiar... 

Mon, 02/24/2014 - 23:34 | 4473845 TheHound73
TheHound73's picture

Interesting view of the price divergence between Mt.Gox and Bitstamp/BTC-e

http://i.imgur.com/ApkXPCp.jpg

Mon, 02/24/2014 - 23:35 | 4473849 asteroids
asteroids's picture

"Fear and Greed". Nothing really changes does it.

Mon, 02/24/2014 - 23:37 | 4473855 hangemhigh77
hangemhigh77's picture

Buying op

Mon, 02/24/2014 - 23:44 | 4473882 TheHound73
TheHound73's picture

Aye, bought back a few coins at $480 that I sold at $635 a couple days ago.  We'll see where all this goes... Short-term uncertain, long-term bull.

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