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Mt. Gox Receives Subpoena From Federal Prosecutor: Source

online.wsj.com

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Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#21

Post by pmorici »

mbreese wrote: post #17
pmorici wrote: post #16

For anyone thinking, "O good the government is here to investigate and get our money back" I wouldn't get too excited I'd say this is more likely them wanting to investigate Silk Road related Bitcoin activity than any desire to help those screwed by Gox.

No... people lost a lot of money, including investors and investment funds located in the US. This is a case of the gov't doing their jobs and likely has nothing to do with Silk Road. It might have something to do with the MtGox funds previously confiscated by DHS(?) though.

The previously confiscated funds were directly related to the Silk Road busts. DHS officials inferred as much in their testimony on Bitcoin before congress.

http://thegenesisblock.com/mt-gox-seizures-linked-silk-road-...

The article implies this wasn't just issued today, it is just being reported now but it says it was actually issued "this month". You know what else happened in that time frame? Charlie Shrem was arrested for Silk Road related Bitcoin charges.

I mean It would be great if they were investigating the insolvency but I'd say there is a good chance it isn't related to that.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#23

Post by letstryagain »

exit wrote: post #20
gojomo wrote: post #11

Wouldn't it be funny if malleability has confused MtGox about its own hot->cold->hot wallet transactions, and it really has way more coins than it knows? Then, when MtGox finally has someone with half a clue patch things & rescan, 700K BTC reappear, and they post on their homepage, "Nevvvvvermind – it was all a bad dream."

have you seen the irc chat log with Mark Karpeles? it almost seems possible that that is exactly what has happened: [12:02] How much did you lose yourself? [12:04] Well, technically speaking it's not "lost" just yet, just temporarily unavailable [12:05] Well, how much is unavail for you? [12:06] I'm not even sure http://www.wickedfire.com/shooting-shit/179038-my-conversati...

What does that even mean, Karpeles isn't making any sense.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#24

Post by fiatmoney »

ck2 wrote: post #22

New York wants to be the big dog in regulating crypto-currency, which almost feels like they are protecting and working at the behest of the banking industry headquartered there. But I do not understand how a NY prosecutor can subpoena a Japanese business?

Easy, if they think a NY law has been violated.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#25

Post by glurgh »

ck2 wrote: post #22

New York wants to be the big dog in regulating crypto-currency, which almost feels like they are protecting and working at the behest of the banking industry headquartered there. But I do not understand how a NY prosecutor can subpoena a Japanese business?

It's a Federal prosecutor who just happens to be located in New York.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#26

Post by nwh »

fabulist wrote: post #14
AngrySkillzz wrote: post #10

Earlier quoted context omitted.

It's pretty embarrassing that you can read most of the article with the paywall intact.

I was wondering if they were deliberately allowing archive sites past the paywall.

More likely archive.is is pretending to be Googlebot. The author has a lot of server side tricks, like fake Facebook accounts so that it can archive Facebook pages properly.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#27

Post by anigbrowl »

ck2 wrote: post #22

New York wants to be the big dog in regulating crypto-currency, which almost feels like they are protecting and working at the behest of the banking industry headquartered there. But I do not understand how a NY prosecutor can subpoena a Japanese business?

If you're doing business in New York, then you can be sued there. It's called the doctrine of 'minimum contacts.' Of course, they could choose to ignore the subpoenas, but then the NY DA could presume the worst and issue an arrest warrant for anyone connected with the operation, which would make it difficult for them to visit the US.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#28

Post by nwh »

MichaelGG wrote: post #19
gojomo wrote: post #11

Wouldn't it be funny if malleability has confused MtGox about its own hot->cold->hot wallet transactions, and it really has way more coins than it knows? Then, when MtGox finally has someone with half a clue patch things & rescan, 700K BTC reappear, and they post on their homepage, "Nevvvvvermind – it was all a bad dream."

That'd be some confusion. They just need to look at their cold wallet addresses to see the balance, right?

Old wallets can be huge, tens of thousands of receiving addresses large. Most aren't even displayed to the client (change addresses).

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#29

Post by ubernostrum »

ck2 wrote: post #22

New York wants to be the big dog in regulating crypto-currency, which almost feels like they are protecting and working at the behest of the banking industry headquartered there. But I do not understand how a NY prosecutor can subpoena a Japanese business?

But I do not understand how a NY prosecutor can subpoena a Japanese business?

If you offer services to, or engage in financial transactions with, a person in Jurisdiction A, Jurisdiction A can enforce its laws on you. You should not in any way be surprised by this fact.

Re: Mt. Gox Receives Subpoena From Federal Prosecutor: Source

#30

Post by gojomo »

nwh wrote: post #28
MichaelGG wrote: post #19

Earlier quoted context omitted.

That'd be some confusion. They just need to look at their cold wallet addresses to see the balance, right?

Old wallets can be huge, tens of thousands of receiving addresses large. Most aren't even displayed to the client (change addresses).

And maybe if they'd tried to be clever, with custom "high-security" key-generation/key-splitting tricks, but actually wound up being stupid, without good records of public-addresses... then reconstructing the public-addresses for lookup could be just as hard as reconstructing the private-keys.

Of course we're in wild-speculation territory but it's an interesting creative extreme-scenario exercise.

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