What really happened that brought Mt Gox down?

Mark Karpeles bows deeply
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The bad about Mt Gox

The main reason I moved all my money out of Mt Gox was the higher service rate – 0.3% versus 0.2% at BTC-e.com. But then I started reading more about customer complaints and inside reports that Mt Gox was not running a clean business. Within the Bitcoin community, I read withdrawals were taking longer and longer, indicating cash flow trouble. But Mt Gox was the biggest Bitcoin exchange, could they really fail? Then there was a Bitcoin flaw, followed by Mt Gox freezing all withdrawals, and then ultimately going under. So Mt Gox was sloppy, and then unlucky I guess? I doubt it was so simple.

angry mt gox customers

Bitcoin owners want to talk to Mt Gox

Karpeles needed an exit

With trouble brewing behind the scenes at Mt Gox, Karpeles knew insolvency was just a matter of time. He was looking for a way out before a run on Mt Gox could happen. Victims and courts won’t accept incompetence, but if Mt Gox was a victim, it’s easier to point the finger and pass along the blame.

Watch in the coming weeks. I’m willing to bet my Bitcoin that Mt Gox won’t cooperate with efforts like this to help recover assets. I hope I’m wrong, and the recent Bitcoin hiccup was just the straw that broke the camel’s back, and that the victims might be able to get their money back. Who knows, just last week it was a mystery who invented Bitcoin, and now we found the real Satoshi Nakamoto.


– Or –

Take me to the next section –>

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