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Print 22 comment(s) - last by Donovan.. on Mar 24 at 11:30 AM

They were in an "old-format wallet"

Mt. Gox has managed to locate about 200,000 of the missing Bitcoins it thought were stolen, which are worth about $120 million USD. 
 
Mt. Gox, which is a Bitcoin exchange service, said it lost about 750,000 of its customers' Bitcoins last month as well as 100,000 of its own. This totals to about $450 million USD. 
 
Since that incident, plaintiffs have filed a class-action lawsuit against the company. Mt. Gox filed for bankruptcy after the incident as well. 
 
Mt. Gox and its CEO Mark Karpeles are not allowed to move any money outside of the United States and the company needs to provide full accounting of any assets it has left.


A CBC News report said Mt. Gox found 200,000 of the 850,000 missing Bitcoins -- which it assumed were stolen -- in an "old-format wallet," which is a digital storage file that was searched after the bankruptcy proceedings. 
 
Mt. Gox said it told the bankruptcy court about the coins on March 10, and that it moved them to an offline site from March 14 to March 15.
 
Bitcoins can be stored online or offline, in "hot" or "cold" wallets respectively. "Hot" wallets are accessed through a computer network while "cold" wallets can be USB sticks or even a piece of paper. 
 
Now, the search is on for the remaining 650,000 Bitcoins. 

Source: CBC News



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RE: Ummm...
By Belegost on 3/21/2014 4:26:26 PM , Rating: 6
I would really love to see what they were using to actually do their accounting. At this point I'm thinking the back of old strip club receipts and notepad files saved as Untitled(34).txt.


RE: Ummm...
By Vertigo2000 on 3/21/2014 4:56:07 PM , Rating: 1
Uh, so, um, those aren't generally accepted accounting practices?

So that IRS agent was right. I didn't have to kill him.


RE: Ummm...
By Belegost on 3/21/2014 5:22:36 PM , Rating: 2
Ooh yea, GAAP says that you at least need to date your text files, so "Untitled_02_07_2009.txt" is perfectly fine, and you need to make sure your strip club receipts are on white paper, the yellow ones are not valid.

;)


RE: Ummm...
By Solandri on 3/23/2014 5:45:12 PM , Rating: 2
Bitcoins - being an independent currency not subject to any government - don't require you to comply with GAAP guidelines. The bitcoin proponents were so busy criticizing the disadvantages of a government-backed currency, they completely forgot to look at the advantages.


RE: Ummm...
By JasonMick (blog) on 3/21/2014 7:16:19 PM , Rating: 2
quote:
I would really love to see what they were using to actually do their accounting. At this point I'm thinking the back of old strip club receipts and notepad files saved as Untitled(34).txt.
Well, this is proof, at least that Karpeles really is magical!

Look at that, he can magically make hundreds of millions of dollars worth of bitcoins that he claimed were stolen appear out of thin air, when he's threatened with perjury, loss of assets, and prison time!!

MAGIC!

Maybe he should relaunch the site in its true original glory -- MagicTheGatheringOnlineExchange.com.

Come give us some bitcoins and see our magic trick! The trick is that your money disappears, and then after you sue me, 20 percent of it reappears in hopes you'll drop your lawsuit! Hurray!

/sarcasm

Serious:

Note to all of us here that our developers, we really must all make cryptocurrencies and cash in on this pyramid scheme, becoming ridiculously rich while this gullibility lasts.

That's the hilarious part. Karpeles didn't even have to do any magic tricks. Bitcoin's built in pyramid scheme mechanisms would have made him rich and 100 percent legally so ... too bad he got greedy.

Now he'll be lucky if he stays out of jail, let alone has a fraction of what he was formerly worth.


RE: Ummm...
By The Von Matrices on 3/21/2014 11:24:51 PM , Rating: 3
Karpeles is definitely maniacal and manipulative, but I don't think he is as unique in this scenario as you make him out to be. Failing companies do this all the time. It's a simple and common psychological trick.

If you simultaneously tell an investor/customer that the company failed and 80% of their money is lost, then they will be forever angry with you. However, if you tell the person only that the company failed, then they assume that 100% of their money is gone and become comfortable with having lost it all. If you then later announce that 20% has been recovered, they will remain grateful toward you for recovering the money (even though it was still the same amount lost in the end).

The only difference between Karpeles and most other companies is that Karpeles was dumb and gave an exact loss in the beginning. Any smart PR person would know that you should never offer numbers unless you have to. He should have acted like every other failing company out there and just kept quiet while the investors/customers speculated a total loss.


RE: Ummm...
By Belegost on 3/22/2014 12:30:15 AM , Rating: 2
I would totally be in on starting up DailyCoins, or MickCoins, I could use some quick riches. The very nice series of articles over on Ars even showed how easy it is to do. =)

On the serious side: I'm actually on the fence on whether this is actually a scam or sheer incompetence. I've read through your profile (which was quite thorough, props) and other sources, and my instinct is telling me that he's just a poorly organized, poorly motivated person who has some decent ideas but completely lacks in the ability and perseverance to competently follow through on them.

I would honestly not be surprised if it comes out that someone else in the company set this up, secretly siphoning off coins and using the bad practices and organization in the company to cover it up, leaving Karpeles as the dupe to take the fall.


RE: Ummm...
By AssBall on 3/22/2014 10:32:20 AM , Rating: 2
I recently "found" some ten year old ten thousand dollars of Monopoly money. I'll totally trade you for some MickCoins!


"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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