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Yes, and now they're not paying BTC either. 50k BTC (over 4k withdrawal attempts) are now stuck in limbo. MtGox claims it's a purely technical issue due to thei

Yes, and now they're not paying BTC either. 50k BTC (over 4k withdrawal attempts) are now stuck in limbo. MtGox claims it's a purely technical issue due to their custom implementation of Bitcoin protocol. People don't really believe that anymore, most (at this point) on IRC and Bitcointalk and Reddit think Gox doesn't have the money. Some haven't received their BTC after 13 days of waiting. MtGox hasn't released any official statement except this one: https://support.mtgox.com/entries/26128504-Update-Statement-Regarding-BTC-Withdrawal-Delays https://support.mtgox.com/entries/26128504-Update-Statement-... No proof of having enough funds, no explanation.

cantbecool 13y ago
Where is everyone going, coinbase?
- brokenmusic 13y ago
  btc-e.com and Bitstamp, I guess.
- contingencies 13y ago
  Kraken.com
  - siculars 13y ago
    Is kraken taking money in all States? Or just South Carolina which, I believe, is the only State they have a license in.
    - contingencies 13y ago
      There are regulatory limits on fiat transactions in some US states. The list of approved states has never been one state long, and the expensive and time consuming, US-specific process of acquiring state-by-state licenses for the remainder is well underway. Overseas, in more logically regulated places such as Europe and parts of East Asia, there's no such barrier.
- SanderMak 13y ago
  kraken.com
- Mtinie 13y ago
  Hopefully Vault of Satoshi's volume will pick up as a result. Top-notch infrastructure and things are communicated out to holders in a timely manner.
ChuckMcM 13y ago
I could make some smarmy remark about how good FDIC insurance is looking about now but at those levels (north of 30M$ equivalent) even banks have a hard time. So I'll pass. The reference page mentioned their "hot wallet" went dry (presumably it ran out of coin) and someone went to their offline storage and took out the USB stick with the offline wallet and will drive back into town and put some coinage into the account. I suppose if you knew who the Mt Gox folks were, and you had enough BTC you could try to 'stage' this ala Oceans 11 or the Italian job but given the challenge of moving really large quantities of BTC into fiat currency I'm not sure that makes sense. One of the things that is really fascinating about the BTC ecosystem is that all of this stuff happens visibly, unlike private banks where they just find the guy who embezzled the money shoot him and drop him off a pier or something.
- pyalot2 13y ago
  The FDIC insurance funds only covers a small fraction of the liabilities of deposits. If one of the too big to fail banks fails, and isn't bailed out, depositors are gonna get Goxed.
  - hueving 13y ago
    FDIC covers up to $200,000 for each account.
    - hayksaakian 13y ago
      Approx 200 btc. Note the issues the parent mentioned were with 4k+btc transfers FDIC would not have saved them in USD
      - Anderkent 13y ago
        Pretty sure the GP talks about 4k transactions, not transactions with 4k+ btc.
    - pyalot2 13y ago
      The FDIC covers up to $250k for each account. It does so using a fund that's about $50b, for a depositor liability of around $5t. If you do the math, that means around 1% of depositor liabilities are covered. There are over 5000 institutions covered, however JP Morgan Chase holds around $1t in deposits (20%), BofA holds around $2t (40%) and then the rest is divided up in the long tail of decreasing market share. This means that, if for instance BofA or JP Morgan Chase fails (that'd never happen, right?) that the liabilities alone of these banks are already 20x to 40x bigger than the entire FDIC fund. Please tell me you see the problem there.

cantbecool 13y ago

Where is everyone going, coinbase?

brokenmusic 13y ago
btc-e.com and Bitstamp, I guess.
contingencies 13y ago
Kraken.com
- siculars 13y ago
  Is kraken taking money in all States? Or just South Carolina which, I believe, is the only State they have a license in.
  - contingencies 13y ago
    There are regulatory limits on fiat transactions in some US states. The list of approved states has never been one state long, and the expensive and time consuming, US-specific process of acquiring state-by-state licenses for the remainder is well underway. Overseas, in more logically regulated places such as Europe and parts of East Asia, there's no such barrier.
SanderMak 13y ago
kraken.com
Mtinie 13y ago
Hopefully Vault of Satoshi's volume will pick up as a result. Top-notch infrastructure and things are communicated out to holders in a timely manner.

ChuckMcM 13y ago

I could make some smarmy remark about how good FDIC insurance is looking about now but at those levels (north of 30M$ equivalent) even banks have a hard time. So I'll pass. The reference page mentioned their "hot wallet" went dry (presumably it ran out of coin) and someone went to their offline storage and took out the USB stick with the offline wallet and will drive back into town and put some coinage into the account. I suppose if you knew who the Mt Gox folks were, and you had enough BTC you could try to 'stage' this ala Oceans 11 or the Italian job but given the challenge of moving really large quantities of BTC into fiat currency I'm not sure that makes sense. One of the things that is really fascinating about the BTC ecosystem is that all of this stuff happens visibly, unlike private banks where they just find the guy who embezzled the money shoot him and drop him off a pier or something.

pyalot2 13y ago
The FDIC insurance funds only covers a small fraction of the liabilities of deposits. If one of the too big to fail banks fails, and isn't bailed out, depositors are gonna get Goxed.
- hueving 13y ago
  FDIC covers up to $200,000 for each account.
  - hayksaakian 13y ago
    Approx 200 btc. Note the issues the parent mentioned were with 4k+btc transfers FDIC would not have saved them in USD
    - Anderkent 13y ago
      Pretty sure the GP talks about 4k transactions, not transactions with 4k+ btc.
  - pyalot2 13y ago
    The FDIC covers up to $250k for each account. It does so using a fund that's about $50b, for a depositor liability of around $5t. If you do the math, that means around 1% of depositor liabilities are covered. There are over 5000 institutions covered, however JP Morgan Chase holds around $1t in deposits (20%), BofA holds around $2t (40%) and then the rest is divided up in the long tail of decreasing market share. This means that, if for instance BofA or JP Morgan Chase fails (that'd never happen, right?) that the liabilities alone of these banks are already 20x to 40x bigger than the entire FDIC fund. Please tell me you see the problem there.