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Mt.Gox CEO Will Have You Know He Has Not Run Away With Your Non-Virtual Money

Submitted by Tyler Durden on 02/26/2014 09:43 -0400

Contrary to public speculation, Bitcoin CEO Mark Karpeles will have you know that after halting virtual transactions on his "Magic: The Gathering Online Exchange" for the second, and likely final time, that he has in fact not run away with any all too real money that may still be found at the now defunct exchange of virtual stuff.

From this guy:

Dear MtGox Customers,

As there is a lot of speculation regarding MtGox and its future, I would like to use this opportunity to reassure everyone that I am still in Japan, and working very hard with the support of different parties to find a solution to our recent issues.

Furthermore I would like to kindly ask that people refrain from asking questions to our staff: they have been instructed not to give any response or information. Please visit this page for further announcements and updates.

Sincerely,

Mark Karpeles

This is happening as the Japan police is finally stepping in:

Japanese authorities are looking into the abrupt closure of Mt. Gox, the top government spokesman said on Wednesday in Tokyo's first official reaction to the turmoil at what was the world's biggest exchange for bitcoin virtual currency.

"At this stage the relevant financial authorities, the police, the Finance Ministry and others are gathering information on the case," Chief Cabinet Secretary Yoshihide Suga told a regular news conference when asked about Tuesday's shutdown of the Tokyo-based exchange.

Speaking shortly after The Wall Street Journal reported that Mt. Gox had received a subpoena from federal prosecutors in New York, Suga declined further comment.

Japan's Financial Services Agency and Finance Ministry told Reuters on Tuesday that they do not have jurisdiction over Mt. Gox after the exchange's website went down and efforts to reach company officials failed. The Bank of Japan said it had nothing to add to a comment by Governor Haruhiko Kuroda that the central bank was "very interested" in bitcoin.

Interested because Kuroda too would love to apply to the Yen the same devaluation that Bitcoin trading on MtGox has experienced.

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Wed, 02/26/2014 - 10:06 | 4479708 Max Cynical

Interesting writup on Techcrunch...

http://techcrunch.com/2014/02/25/mt-gox-demise/

leaked deck on Scribd describing a crisis management strategy

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

Sounds like a bunch of kids playing business.

Wed, 02/26/2014 - 10:28 | 4479790 Pure Evil

Or more like the underlying theme to the movie "Office".

So, which came first HFT algos or subpennying accounts using software as seen in the movie?

Wed, 02/26/2014 - 10:10 | 4479728 ebworthen

That guy is such a putz.

I never did any business with Mt. Gox but if I'd seen a picture of him I wouldn't.

I feel sorry for the kids who want to buy and sell "Magic the Gathering" cards.

Oh well, back to Yu-Gi-Oh or Pokemon.

Wed, 02/26/2014 - 11:56 | 4479734 Infinite QE

He'll be added to the board of the Fed. Watch. He's got the right religious background and he's duped people out of millions.

Wed, 02/26/2014 - 11:31 | 4480056 dark pools of soros

you mean this picture??

http://thegenesisblock.com/wp-content/uploads/2013/04/mtgox_ball.png

http://thegenesisblock.com/an-analysis-of-the-interview-with-mark-karpel...

also.. great trading pit for bitcoin ... :)

http://money.cnn.com/2014/02/25/technology/security/bitcoin-mtgox/

Wed, 02/26/2014 - 10:11 | 4479731 LongSilverJohn

I think this Mark guy cashed in the Bitcoins and bought gold coins which are now buried in a tin can in his back yard...

Wed, 02/26/2014 - 10:11 | 4479733 Pol Pot

NSA 1
Crypto currency 0

It was an NSA project from day one......

Wed, 02/26/2014 - 10:13 | 4479736 agent default

Where is fonestar? Hey fonestar, you here? Your Bitcoin chickens are home to roost.

Wed, 02/26/2014 - 10:22 | 4479768 ebworthen

I'll just leave this here as a memento, or keepsake, of sorts:

http://www.ghacks.net/wp-content/uploads/2013/11/mtgox.jpg

Sat, 03/01/2014 - 04:57 | 4492817 MeelionDollerBogus

let me add http://flic.kr/p/kyKgtF : $5.76/btc EPIC FAIL

$6 BTC are back again? BTFD!!

wondercoin powers ACTIVATE

form of ... EPIC FAIL

Wed, 02/26/2014 - 10:30 | 4479800 Pure Evil

He's probably sucking Satoshi's virtual penis.

Wed, 02/26/2014 - 11:25 | 4480037 verbot

said amy wongs 300 bigboy tatoo....lol....been dying to say that to ya pure...lol

Wed, 02/26/2014 - 10:14 | 4479747 monopoly

I am so glad I did not understand how Bitcoins worked and never got involved in the hype. Knew nothing about it and still know very little. Have absolutely no interest.

Gold and Silver on the other hand.........

Wed, 02/26/2014 - 10:35 | 4479829 agent default

Your ignorance has cost you a once in a lifetime comedy show.

Sat, 03/01/2014 - 04:56 | 4492815 MeelionDollerBogus

I'm a programmer, I understand bitcoin fully.

You only need to know this: because fait exchanges were the primary purpose of bitcon it turned into a fraudulent, rigged FX-market that was unregulated but also lacked any protection outside regulations of any sort whatsoever.

It didn't have to be that way but that's what it is, and having an exponentially growing blockchain doesn't help. A currency doesn't NEED a transaction record for all history to function. Neither gold nor fiat currency ever did, and while they work very differently from each other BOTH are better than bitcon for that reason.

Wed, 02/26/2014 - 10:15 | 4479752 Bangin7GramRocks

We need someone stable like the Topps Corporation to step in and clean up this Bitcoin business. And if they aren't available, try Upper Deck.

Wed, 02/26/2014 - 10:16 | 4479757 Dadburnitpa

Dude must have failed his Corzining 101 class.

Wed, 02/26/2014 - 10:20 | 4479763 Chief_Illiniwek

Every generation has its Robert Vesco.

Wed, 02/26/2014 - 10:22 | 4479767 madtechnician

Yawn. Third major crash in 4 years , not the first and it certainly won't be the last.

I am sure the Flat Earth Society will again be saying it's all over when it drops from 50k down to 30k in a couple of years time.

Wed, 02/26/2014 - 10:33 | 4479819 Pure Evil

Wow, that's a worse prediction than the blather about gold and silver and the Dow going to 36,000.

Sat, 03/01/2014 - 04:53 | 4492813 MeelionDollerBogus

3rd... 300th... bitcoin is going to ZERO

http://flic.kr/p/kyKgtF : $5.76 print at 6am GMT aka 1am EST almost 24 hours ago for BTC. It wasn't the final bid, certainly they've gone up, but a print that low spells DOOM.

Wed, 02/26/2014 - 10:26 | 4479783 Dr. G

I think they call that counterparty risk

Wed, 02/26/2014 - 10:30 | 4479802 FanOfAnn

Karpeles & Corzine should be sharing a cell with Madoff.

Wed, 02/26/2014 - 10:34 | 4479824 Agent P

I think I bought a used car from that guy once.

Wed, 02/26/2014 - 10:44 | 4479858 RaceToTheBottom

Why is it after hearing from most, if not all CEOs, you feel like you need a shower?

I mean really, for me that is really the feeling with most every CEO. Is it really true that the criteria for promotion or selection applied nowadays is a functioning sociopath?

Someone needs to write another book about leadership for the anti-sociopath CEO

Wed, 02/26/2014 - 12:21 | 4480316 dark pools of soros

http://thegenesisblock.com/an-analysis-of-the-interview-with-mark-karpel...

Wed, 02/26/2014 - 10:56 | 4479918 Rising Sun

big fucking surprise

stupid splat coin

all those evangelical lemmings are.....wait for it.....wait for it.....bagholders!!!!!!

the more things change, the more they stay the same

Wed, 02/26/2014 - 11:39 | 4480094 Miner

Mt. Gox has repeatedly broken, and each time they have been difficult an uncommunicative. They have set BTC adoption back significantly. I cannot understand why people continued to use them. Why didn't you look at other exchanges when they lost all their unencrypted user accounts? When they misplace thousands of dollars in Dwolla withdrawals? When they suspended USD withdrawals the first time?

To keep your Bitcoins safe hold them on a wallet you physically posess that has multiple backups. Holding BTC or cash in an exchange is like asking the coin shop to store your silver for you. Bad idea.

<plug> I use the USS based exchange CampBx.com and am happy with their service. Even when they had problems from Denial of service attacks they've always been responsive and helpful.</plug>

Wed, 02/26/2014 - 11:54 | 4480163 Bow Tie

wouldn't like to be this dude right now. ppl gonna want to chop his mt. cocks off. heehee!

Wed, 02/26/2014 - 11:57 | 4480179 Infinite QE

My hats off to those who got into the Bitcoin hysteria early, but as the song goes, `You gotta know when to walk, know when to run"

Wed, 02/26/2014 - 12:25 | 4480340 dark pools of soros

or perhaps not be part of the 'dark age' and actually learn sumtin?

a two bit exchange like Gox is not the bitcoin protocol network ledger. people kept putting their money and coins into this guy's hands even with the writing on the wall for many many months.. stupid people and scammers are everywhere

this is a good hard lesson for these fools.. bitcoin is solid BTFD!!!!!!

Wed, 02/26/2014 - 12:43 | 4480414 pitz

The Japanese-origin SUKI (tm) RELIGION, The New World Religion (tm), "motherfucking religion" would just like to clarify that despite being founded by Japanese intellectuals at Mt. IKUS in the early 1970s, there is no affiliation whatsoever with Mt. Gox.

SUKI (tm) RELIGION memberships were never purchasable with the Bitcoin-brand payment system. The JCB credit card has always been, and will always be the preferred payment system for SUKI (tm), The New World Religion (tm) membership.

Wed, 02/26/2014 - 13:00 | 4480513 warish

I am missing something how could you ever sell anything priced in Bitcoin. Amazon.com prices would look like little stock tickers. You would have to sit their and time your click just right when adding something to your cart. The volatility that makes it so attractive to people like foneystar make it completely incompatible for merchants.

Wed, 02/26/2014 - 13:01 | 4480516 I Write Code

So he hasn't run away, but that is not to say he hasn't participated in the looting of customer accounts. Contrary to your headline he does not deny doing so!

But I don't think the vibe was ever that he was stealing from his customers, the question is who else might have been stealing from his customers. And his early denials that anything was lost was certainly just whistling in the dark.

Wed, 02/26/2014 - 13:04 | 4480532 topspinslicer