Mt.Gox "Closes All Transactions" Again "To Protect Site And Users"

Tyler Durden's picture

More humor from Mt.Gox, which has once again "temporarily" suspended all transactions. Can it just make it permanent already, and get it over with?

Just released statement from the doomed exchange named after Magic: The Gathering.

Dear MtGox Customers,


In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.


Best regards,
MtGox Team

Meanwhile, here is an artist's rendering of what Mt.Gox' logo should have been all along:

h/t @ButtCoin

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Divided States of America's picture

One day this will happen on NYSE and NASD.

Indian_Goldsmith's picture

All those going bankrupt due to this fraud... I am willing to buy your young women for gold coins. Who wants gold?

AlaricBalth's picture

Rumors have swirled that Mt Gox's downtime is a result of a massive hack that has stolen as many as 744,000 bitcoins, fully 6% of all bitcoins in existence.

And from Reddit Bitcoin thread:


Just got an email from MtGox account that someone successfully logged in my account.

The thing is: I created that account for a brief moment, and no one knows about my account, i have no relationship with bitcoins since i dont buy/sell.

I must come to a conclusion that maybe MtGox got hacked.

Be warned guys..

Here the email:

Dear saxxxxx,

This is an email notification that your MtGox account has been logged-in to successfully.

Login Details: Account ID: saxxxxx IP Address: User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Windows NT 6.1; WOW64; Trident/4.0; chromeframe; SLCC2; .NET CLR 2.0.50727; .NET CLR 3.5.30729; .NET CLR 3.0.30729; Media Center PC 6.0; MAXTHON 2.0) Connection Time: 2014-02-16 12:36:09 GMT

The purpose of this email is to keep you notified about account activity. Thank you for using MtGox and keeping your account secure.

Best Regards, MtGox Support


And another happy customer:

I was hacked aswell. I have never used my account there to the point that i forgot that i had even had one. I made it ~a year ago. I'm not running a compromised system. I run linux and have not only not logged on that account since the day it was created, it's not using a shared password. I run noscript. I reformat my system fairly frequently(once every month or so.). I have not been on that site before making the account and since making the account. It's looking like they may have been hacked. everyone be careful. change your passwords everywhere. enable 2FA. Consider setting up a password manager such as keepass.

IP Address:

Could be a script they're running to modify user accounts. Considering it's happening to lots of people there's either a complete crack on their user account hash or it's just a symptom of whatever they're trying to fix. I don't find it that strange it's traced back to China IP, physically that's the first hop Japan will make, we're only seeing the last-hop ISP results. I'm always trying to think positive though, which usually works since people are very jumpy about these things. No one that I've seen in posts has stated they had any btc stolen, withdrawn, etc...just the notification botmail. Let's see how it pans out. Jeebers, what a mess.

fonestar's picture

So people should take a lesson and don't treat exchanges like savings accounts.

The appears to be China but could just be a proxy-bot in the attack.

AlaricBalth's picture


Interesting Mt Gox Crisis Strategy Draft

An excerpt:

For several weeks MtGox customers have been affected by bitcoin withdrawal issues that compounded on themselves. Publicly, MtGox declared that “transaction malleability” caused the system to be subject to theft, and that something needed to be done by the core devs to fix it. Gox’s own workaround solution was criticized, and eventually a fix was provided by The truth, it turns out, is that the damage had already been done.


At this point 744,408 BTC are missing due to malleability-related theft which went unnoticed for several years.

The cold storage has been wiped out due to a leak in the hot wallet. The reality is that MtGox can go bankrupt at any moment, and certainly deserves to as a company. However, with Bitcoin/crypto just recently gaining acceptance in the public eye, the likely damage in public perception to this class of technology could put it back 5~10 years, and cause governments to react swiftly and harshly. At the risk of appearing hyperbolic, this could be the end of Bitcoin, at least for most of the public.We believe in the value of Bitcoin, its potential to change the world, and its principles of transparency. Most importantly we care about the customers of MtGox and other bitcoin-based businesses who will be affected.The likely consequences will be larger than this localized financial damage, and we believe that the benefits of keeping MtGox stable and running outweigh the risks. This isn’t about saving MtGox anymore.

akak's picture

"The Mt. Gox crisis is contained, and will not spread to the broader cybercurrency economy".

-Bitcoin Bernanke

Stackers's picture

Just leaked phone cam video of the MtGox board meeting

fonestar's picture

In the end fiat days you better get right with Satoshi and...


SAT 800's picture

You really need to get out more.

FEDbuster's picture

Just checked my gun safe, all my silver and gold present and accounted for.

"If you can't stand in front of it and defend it with an AR-15, you don't own it" Ann Barnhardt

fonestar's picture

fonestar just checked his wallets.  All of his Bitcoins are fine.

Rusty Shorts's picture

Rusty thinks fonestar is a blithering idiot.

MeMongo's picture

Classic vid

"Fuck this game" 


Exponere Mendaces's picture


Yeah, the other exchanges are trading 100-plus higher from the overnight lows - and everyone can get their balances. There's no reason to use an exchange like a bank, and very few actually do - if they know what they're doing, that is.

Gox was a cancer, it has been excised, and now the recovery will begin. Unlike the legacy financial system, with its TARP, QE-Infinity, Maybe-Taper nonsense. I'm sure the next Debt Ceiling fiasco is just around the corner, in addition to the full-scale raping and pillaging of everyone's savings in 401k's with MyRA's and other instruments they'll eventually make mandatory.

fonestar's picture

fonestar would not necessarily agree with that.  Bitcoin isn't mom and pop's guaranteed 2% IRA or whatever, those people would not be buying Bitcoin anyways and will use every piece of "news" as justification for why they're glad they didn't buy.  As for transaction malleability, it appears that Gox's wallet was second guessing or at least not waiting for confirmation from the Blockchain?  Stupid, why?  Gox is not critical for Bitcoin's survival anymore than COMEX is critical for physical silver's survival.  Maybe we go down into $300s or $400s from here but should be putting in a bottom soon and personally fonestar is glad Gox is gone.  What are the Tyler's going to do for Bitcoin "news" now?  Oh, maybe reference a real exchange???

BurningFuld's picture

Here is what you do not get about bitcoins. People will make every effort that is humanly possible to steal them because there will be NO PENALTY for stealing them. Anything and everything you can think of of people will be doing to take them from you...there will be no stone left unturned. Get it??

Example: Set up an exchange for bitcoins and then steal them. I mean why the fuck wouldn't you???

fonestar's picture

Did I miss something?  People are going to steal any media that can be used for exchange of goods and services.  A lot of these thieves are very sophisticated and brilliant.  fonestar has never had any Bitcoin stolen from him and his PAL.

TheHound73's picture

You are one of those that need to wait until Bitcoin is safe enough for grandma to use.  Be thankful that security improvements being built up around protecting bitcoins will trickle down to all forms of digital activity.

FinalEvent's picture

And at least Gox is not too big to fail!
Let it die and be an example for the fiat world.

bitHedge's picture

Being hacked is complete BS!

I own a Hong Kong company in bitcoin. In July the USA financial regulators seized Gox cash in US jurisdiction for non-compliance as a a money transmitter. 80% of their volume was in USD, they went insolvent that day. Over the last 8 months they have been Corzining their exchange, defrauding customers, and making highly leveraged bets with their clients' money in order to try to claw their way back to solvency. Eventually bitcoin started a correction from the $1000 point, and Gox was late coming up with the cash to pay people that were taking their profits. So traders started just taking their bitcoins out and to different exchanges to cash out....


And that is what did it, Gox ran out of bitcoins so they froze bitcoin withdrawal. And being a bunch of Corzines, they will lie that the funds are stolen to cover their assess. Give it a month or two and I bet you their CEO will be in US custody and made an example of, the regulators would love to show their power in this new market


PS I have never done business with Gox

fonestar's picture

Thanks for the information.  fonestar hopes the regulators scare all the weenies (like the posters here) out of ever owning Bitcoin.

chemystical's picture

"fonestar hopes the regulators scare all the weenies (like the posters here) out of ever owning Bitcoin"

Riiiiiight, and "...fuck the 99%" and "Who gives a fuck what Joe or Jane think?" and "I hope that everyone sells so that I can buy them all".   Because no market needs particpants. 

What remains is 0.01% of the world's population in a big circle jerk wondering why they've yet to see the 5 or 6 digit USD per Btc that you promised.  And there, leading the circle jerk, is phoneystar shouting, "Pump faster".

MeMongo's picture

I hear it doesn't take gold to get women in India, just a large group of thugs!

fonestar's picture

Hey Phone..., it's for you...


fonestar has this.

NoDebt's picture

New press release from Mt. Gox as to whats going to happen to their clients' accounts, as read by Groundskeeper Carl from Caddyshack:

So we finish the eighteenth and he's gonna stiff me. And I say, "Hey, Lama, hey, how about a little something, you know, for the effort, you know?" And he says, "Oh, uh, there won't be any money, but when you die, on your deathbed, you will receive total consciousness." So I got that goin' for me, which is nice.

gmrpeabody's picture

"fonestar has this"

I know..., it's only a flesh wound...


fonestar's picture

Exactly, we will soon be rallying to new ATHs.

Pickleton's picture

To be immediately followed by greater all time hacks.

fonestar's picture

Correct.  The hacking, shady characters, disinformation and spikey-crashey thing is what makes Bitcoin investing so exciting!!

ThirdWorldDude's picture

#wow    It must make you feel like James Bond... a real thriller now that you've turned 18.

fonestar's picture

fonestar's PAL is 35.  fonestar's PAL has been waiting for the cryptocurrencies since 18 though.

akak's picture

I'm guessing that your pal usually takes the top position, too, since you always seem so eager to bend over.

ElvisDog's picture

It's not about who is on top. It's about who provides the power. Fonestar could be a power bottom.....

(h/t "It's Always Sunny in Philadelphia")

JamesBond's picture

My name is James and my martini is still dry

NoDebt's picture

Fone- I don't know what's more entertaining.  Watching MtGox circle the drain or watching your credibility circle the drain.

rubiconsolutions's picture

@fonestar - Some serious questions which I'm not sure you're capable of answering: What exactly is the role of Bitcoin for the average person? It seems to me that the average person (not you of course) wishes to have a stable currency. Other than being pure speculation, how is Bitcoin going to be anything utilitarian to the average person? It has declined by 50% in value in less than 30 days. So, what would that mean for the normal, everyday working person who has to put food on the table? Doesn't that mean that if a person was conducting business using Bitcoin that their food prices doubled in less than 30 days? If that is the case, how do you see Bitcoin (or any other crypto currency for that matter) gaining wide acceptance as an alternative to the USD? Now I know that you don't care about most people because you've said as much. However, if these alternate "currencies" are to be considered serious threats to the USD monopoly then these questions must be answered. So please oh wise one, please enlighten us by answering these questions. With something other than the brilliant one liner that you are famous for.

ElvisDog's picture

An equally important issue is that bitcoin becomes harder and harder to use with each passing week, because the blockchain file becomes larger and larger.  How useful is bitcoin going to be in a few years when the blockchain files are 1 Terrabyte or larger in size? So I'm going to go to Safeway and buy a gallon of milk with bitcoin and wait in the checkout line for an hour while the blockchain downloads? I don't think so.

fonestar's picture

That's not a concern for Bitcoin.

rubiconsolutions's picture

So what you are saying in effect is that you can't answer some very sensible questions. This exposes what most of us already know: Bitcoin will simply be a footnote in history. Either that or you are a dolt with a keyboard and a very limited vocabulary, critical thinking and communication skills. Which is it?

fonestar's picture

No dipshit.  We've gone over this 5 million times for you morons.  Ever heard of lite clients or just truncating/hashing the blockchain itself?

rubiconsolutions's picture

".....just truncating/hashing the blockchain itself?"

Do you ever go back read what you write? Man I'm telling you, in the end most people, like 99 out of 100 simply want to pay their rent and put food on the table. What the fuck do they know about "truncating/hashing the blockchain"? People work hard and want to be compensated for their labor without having to be an MIT graduate or have a server farm. I suspect that you can't relate to us "morons" because you are endowed with some sort of mental disorder. It's all our fault fonestar, we're just not as smart as you. Channeling Steve Martin - "Well, excuuuuuuuuuusssssseeeee me!"

fonestar's picture

Fuck those 99 people!  Power to the 1% tekk elite!

DontGive's picture

Have you ever considered if a normal joe knows how central banks/reserves work? Do you think they give two shits?

akak's picture

The point is, they should know and care, about fiat currency AND bitcoin as well.

But the use of fiat is so ingrained in modern sheeple that they simply take it for granted.  Bitcoin, or cybercurrencies in general, being so new and unfamiliar, is not yet taken for granted.  Nor should it ever be.