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Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

mtgox.com

41–50 of 113 posts

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#41
post #28

Hate to quote myself, but see the P.S. here: http://news.ycombinator.com/item?id=5568610 If I were a gambling man, I'd say this is quite likely to be shoe #1.

The weird thing is that MtGox made a deal to (effectively) sell themselves to Coinlab which would have either fixed these problems or at least made them not Gox's problems. But then they went back on the deal.

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#42
post #34
post #30

Earlier quoted context omitted.

Unfortunately true. I'd hate to tell everyone with money in mtgox that it is time for a bank run, but...

Luckily, everyone with deposits in Mt.Gox can convert them to bitcoins and send them to some other address. This is one of the benefits of Bitcoin.

If mtgox crashes bitcoin crashes, at least temporarily. You'll end up with your bitcoins safe, but they won't be worth $100+ anymore (if ever again).

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#43
post #37
post #28

Hate to quote myself, but see the P.S. here: http://news.ycombinator.com/item?id=5568610 If I were a gambling man, I'd say this is quite likely to be shoe #1.

I agree. I'd read this statement as: none of our partner banks will do USD withdrawals for us anymore. We think we might be able to find a new bank within two weeks.

Yep. I'd bet real money on that being the root cause. I'm not so sure about the new bank thing though.

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#44
post #32
post #31

Just FYI, I made 6 bank withdrawals in Euro two months ago, and I still have only received 3 of them. They've used up all their goodwill with me.

Currency of the future. I've also been waiting on my second withdrawal forever.

Your withdrawing in your local currency, right? The problem is with Mt. Gox and their ability to give you fiat, not Bitcoin.

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#45
As many mentioned, you can easily move your Bitcoins out. However, I'd posit that 75% or more of accounts on Mt. Gox do not have a verified account elsewhere. Are the other exchanges prepared for the increased load if it comes? If one or two have downtime, what will that do to the price?

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#46
post #28

Hate to quote myself, but see the P.S. here: http://news.ycombinator.com/item?id=5568610 If I were a gambling man, I'd say this is quite likely to be shoe #1.

I wonder about the economics. Could this just be an issue of them deciding to close down altogether? I don't know why, but this read to me more like a run on a bank, rather than a compliance issue. What did people do in the Great Depression? Bank holidays....

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#47
post #40
post #28

Hate to quote myself, but see the P.S. here: http://news.ycombinator.com/item?id=5568610 If I were a gambling man, I'd say this is quite likely to be shoe #1.

I don't know about US law, but in Europe if you're a financial institution and you suspect a customer transaction is involved in money laundering or a similar it's a criminal offence to inform the customer without first clearing it with the relevant legal authorities. If there is some kind of investigation going on MtGox might be completely unaware of it, saying "there's a backlog" is a pretty common way to provide c…

In the UK, you can never inform the customer - that is the offence of "tipping off".

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#48
post #29

Earlier quoted context omitted.

Not true: A new transaction in the bitcoin network isn't linked to any IP address, since transactions diffuse through the network haphazardly: There's nothing to distinguish between a transaction coming from elsewhere and a new transaction originating in the client. The only way to figure out the originating IP address would be to collect all data on close to 100% of the network and analyse the data in a sophisticate…

I'm pretty sure an eavesdropper can simply watch for outgoing transactions which you never recieved and deduce that they originated from you. No fancy network analysis needed.

Exactly right. However, it means they would have to have direct access to 100% of the traffic from the user in question, while the original comment referred to having just a percentage of the backbone (user "sneak" has since edited the original comment to use different wording)

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#49
post #34
post #30

Earlier quoted context omitted.

Unfortunately true. I'd hate to tell everyone with money in mtgox that it is time for a bank run, but...

Luckily, everyone with deposits in Mt.Gox can convert them to bitcoins and send them to some other address. This is one of the benefits of Bitcoin.

Unfortunately, nobody will be willing to sell bitcoins for USD on mtgox if they can't ever get their USD out.

Re: Statement Regarding Temporary Hiatus on U.S. Dollar Withdrawals

#50
post #47
post #40

Earlier quoted context omitted.

I don't know about US law, but in Europe if you're a financial institution and you suspect a customer transaction is involved in money laundering or a similar it's a criminal offence to inform the customer without first clearing it with the relevant legal authorities. If there is some kind of investigation going on MtGox might be completely unaware of it, saying "there's a backlog" is a pretty common way to provide c…

In the UK, you can never inform the customer - that is the offence of "tipping off".

IIRC You can with the consent of the FS(C)A
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