Bitcoins are officially donkdown

[sonatine]

Its just so delightfully convenient. Suddenly its 100% not the fault of MtGox, its all the big bad US government.

Can anyone else remember an incident where the US gov confiscated almost a half a billion dollars worth of assets but imposed a gag order? And isnt that SR investigation over?

Read 2nd word in everything he wrote.

i lost the game.

[DirtyB]

Its just so delightfully convenient. Suddenly its 100% not the fault of MtGox, its all the big bad US government.

Can anyone else remember an incident where the US gov confiscated almost a half a billion dollars worth of assets but imposed a gag order? And isnt that SR investigation over?

I can't remember a gag order that worked like that at all. In a normal gag order case the general situation will be announced and nobody is allowed to discuss the details. I also don't know of another case where the US government would have remotely accessed a system in order to shut it down. In every case I've heard of, men with guns go to the location where the servers are and put everything on a truck. The Japanese government would have certainly done it if the US had asked. What would deter law enforcement officials from just confiscating all of the hardware in this case?

[sonatine]

Its just so delightfully convenient. Suddenly its 100% not the fault of MtGox, its all the big bad US government.

Can anyone else remember an incident where the US gov confiscated almost a half a billion dollars worth of assets but imposed a gag order? And isnt that SR investigation over?

I can't remember a gag order that worked like that at all. In a normal gag order case the general situation will be announced and nobody is allowed to discuss the details. I also don't know of another case where the US government would have remotely accessed a system in order to shut it down. In every case I've heard of, men with guns go to the location where the servers are and put everything on a truck. The Japanese government would have certainly done it if the US had asked. What would deter law enforcement officials from just confiscating all of the hardware in this case?

its a rickroll, see detroits post, and despair.

[Muck Ficon]

[bukowski72]

This was the editorial cartoon today in my local NC paper. Bitcoin still blowing up in a good way?

[Sidewinder]

http://pastebin.com/LPm3jBG7

Excuse my ignorance but is that really a conversation with an owner from Mt Gox?

[Belly Buster]

http://pastebin.com/LPm3jBG7

Excuse my ignorance but is that really a conversation with an owner from Mt Gox?

From previous comments it would seem not. Also there's a discrepancy in the time stamps which would suggest it is faked.

[DRK Star]

just to clarify, I found it on a bitcoin forum and no one could claim it was authentic. I would believe 99% of the "truths" of bitcoins to be complete horseshit.

[sonatine]

just to clarify, I found it on a bitcoin forum and no one could claim it was authentic. I would believe 99% of the "truths" of bitcoins to be complete horseshit.

dude see detroits post please.

[Crowe Diddly]

yeah, it's worth sticking with the post until you see it. The first 2 times I saw it, I was reading every other word, and I couldn't get it. Couple hours later when I came back to the tread, I noticed it was every 2nd word. Then I saw it immediately.

[Walter Sobchak]

yeah, it's worth sticking with the post until you see it. The first 2 times I saw it, I was reading every other word, and I couldn't get it. Couple hours later when I came back to the tread, I noticed it was every 2nd word. Then I saw it immediately.

I still don't get it

[Detroit]

yeah, it's worth sticking with the post until you see it. The first 2 times I saw it, I was reading every other word, and I couldn't get it. Couple hours later when I came back to the tread, I noticed it was every 2nd word. Then I saw it immediately.

I still don't get it

[14:13] <xiando> I'm surprised you actually answer me for once. I did not expect that. I'm just wondering if you have a timeframe for when the "temporary unavailable" bitcoins will be available?
[14:15] <MagicalTux> I never thought it would come to this but here we are
[14:15] <MagicalTux> I'm gonna give a public statement later
[14:16] <MagicalTux> I give you my word
[14:17] <MagicalTux> For you see there is a lot of things we have to deal with now
[14:17] <MagicalTux> It's up to the US govt when we can access the cold storage
[14:17] <MagicalTux> We never got it back after they confiscated it last summer
[14:18] <MagicalTux> I'm gonna be frank here
[14:18] <MagicalTux> They let us keep running the exchange but they did freeze all our assets in relation to the SR to investigation
[14:19] <MagicalTux> So you see it is really not our fault
[14:19] <MagicalTux> So down to the deep truth
[14:13] <xiando> truth?
[14:19] <MagicalTux> It never accrued to us that we would have to access the cold storage
[14:20] <MagicalTux> I'm gonna have
[14:20] <MagicalTux> to run out shortly
[14:21] <MagicalTux> hang around for a while so
[14:21] <MagicalTux> you and I can talk some more
[14:21] <MagicalTux> after desert
[14:21] <MagicalTux> Now you should read the second word of everything I wrote

[Walter Sobchak]

I still don't get it

[14:13] <xiando> I'm surprised you actually answer me for once. I did not expect that. I'm just wondering if you have a timeframe for when the "temporary unavailable" bitcoins will be available?
[14:15] <MagicalTux> I never thought it would come to this but here we are
[14:15] <MagicalTux> I'm gonna give a public statement later
[14:16] <MagicalTux> I give you my word
[14:17] <MagicalTux> For you see there is a lot of things we have to deal with now
[14:17] <MagicalTux> It's up to the US govt when we can access the cold storage
[14:17] <MagicalTux> We never got it back after they confiscated it last summer
[14:18] <MagicalTux> I'm gonna be frank here
[14:18] <MagicalTux> They let us keep running the exchange but they did freeze all our assets in relation to the SR to investigation
[14:19] <MagicalTux> So you see it is really not our fault
[14:19] <MagicalTux> So down to the deep truth
[14:13] <xiando> truth?
[14:19] <MagicalTux> It never accrued to us that we would have to access the cold storage
[14:20] <MagicalTux> I'm gonna have
[14:20] <MagicalTux> to run out shortly
[14:21] <MagicalTux> hang around for a while so
[14:21] <MagicalTux> you and I can talk some more
[14:21] <MagicalTux> after desert
[14:21] <MagicalTux> Now you should read the second word of everything I wrote

Oh Jesus

[sonatine]

yup detroit just sent this thread into orbit.

thanks detroit.



everyone rep detroit for his contributions, you know its the right thing to do.

[Sanlmar]

in a stunning turn of events the asbergers posse on reddit are claiming its a massive conspiracy and the US gov seized the cold wallet.

Sonatine, apparently you have done some heavy lifting slogging through tl;dr class stuff that any non aspergers adult would find difficult.



Question:
Due to ICE pursuing Silk Road and the clear link between SR & largest exchange Gox...
Do you believe ICE/Homeland Security's seizure or the cold wallet killed Gox? Not Transaction Malleability - red herring.

03:12 <@ne0futur> when I were insisting , telling mark to disclose stuff
03:12 <@ne0futur> saying things like "fuck the lawyers, disclose"
03:12 <@ne0futur> he answered me once
03:13 < shadylog> ne0futur: with...
03:13 <@ne0futur> 2014-02-20 10:40<MagicalTux> le gouv. US veut pas qu'on disclose hein
03:13 <@ne0futur>US gov doesnt want us to disclose



[10:58] <JonWickedFire> Is that Crisis Strategy Draft even legit?
[11:04] <MagicalTux> more or less
[11:05] <MagicalTux> as the name suggests it’s a draft, and it’s a bunch of proposals to
deal with the issue at hand, not things that are actually planned and/or done

[12:02] <JonWickedFire> How much did you lose yourself?
[12:04] <MagicalTux>Well, technically speaking it’s not “lost” just yet, just temporarily unavailable


Transaction Malleability did steal a portion of bitcoins, but not the insane 99.7% amount. Gox is now unable to refill their hot wallet due to the seizure.

Gox likely had a tiered system of "hot wallet", "cold wallet" and "coldest wallet". It's possible the US Gov took control of the "coldest wallet", which would contain the largest amount.

Posted this earlier.

Dovetails with Detroit's post.

I am surprised ICE's seizure hasn't gained more traction here 'tine.

Obediently rep Detroit. Anything else?

[Salty_Aus]

[Translation from the Japanese]
February 28, 2014

To anyone concerned
Mark Karpeles
Representative Director
MtGox Co., Ltd.
Shibuya 2-11-5
Shibuya-ku, Tokyo

ANNOUNCEMENT REGARDING AN APPLICATION FOR COMMENCEMENT OF A PROCEDURE OF CIVIL REHABILITATION

MtGox Co., Ltd. made today an application for commencement of a procedure of civil rehabilitation (minji saisei) at the Tokyo District Court. This application was accepted on the same day. Further, MtGox Co., Ltd is under several orders issued by the Court : a preservative order prohibiting it from paying its debts, transferring its assets or establishing security over its assets, an order establishing a comprehensive prohibition of forced attachment of its assets by its creditors and a supervisory order ordering supervision by a supervisory committee. In consequence, MtGox hereby informs you as follows.
We first express our most sincere regrets and apologies for this situation and for causing so much inconvenience to all our users and other interested parties. We will fully respect the above orders and maintain our assets with all the necessary care.

Financial situation, reasons and timeline leading to this application
(1) As of now, the liabilities of MtGox Co., Ltd exceed its assets and its financial situation is as follows:

Total amount of assets 3,841,866,163
Total amount of current liabilities 6,501,119,371
(2) The increase of current liabilities may be linked to a loss of bitcoins and customer funds. These are now investigated by an expert and all efforts are made to discover the truth. This application was prompted by the following troubles:

At the start of February 2014, illegal access through the abuse of a bug in the bitcoin system resulted in an increase in incomplete bitcoin transfer transactions and we discovered that there was a possibility that bitcoins had been illicitly moved through the abuse of this bug.
As a result of our internal investigation, we found that a large amount of bitcoins had disappeared. Although the complete extent is not yet known, we found that approximately 750,000 bitcoins deposited by users and approximately 100,000 bitcoins belonging to us had disappeared.
We believe that there is a high probability that these bitcoins were stolen as a result of an abuse of this bug and we have asked an expert to look at the possibility of a criminal complaint and undertake proper procedures.
On the same day (24th), we found out large discrepancies between the amount of cash held in financial institutions and the amount deposited from our users. The amounts are still under investigation and may vary but they approximate JPY 2.8 billion.
We are investigating the causes of these problems. Since there are probably a variety of causes including hacking by third parties, we need to investigate a huge amount of transaction reports in order to establish the truth. As of this date, we cannot confirm the exact amount of missing deposit funds and the total amount of bitcoins which disappeared.
Once we discovered that bitcoins had disappeared and the discrepancies between cash funds and deposit balances, we judged that it would be difficult to continue our activities normally and we therefore closed our site at noon on the 25th (Japan time).

(3) Regarding the filing of a complaint or damages report, an expert has been mandated and investigations have started. We will make all efforts to ensure that crimes are punished and damages recovered.
Further we will fully cooperate with inquiries from authorities and investigations related to this matter, in Japan or overseas.

In order to increase repayments to our creditors, it is necessary to explore the possibility of having MtGox Co., Ltd. continue its business. This is why the civil rehabilitation procedure has been chosen, Rebuilding MtGox Co., Ltd under the supervision of the court in a legally organized procedure while giving proper explanations will not be for the sole benefit of the company but for that of the whole bitcoin community.
All efforts will now be made to restore the business and recover damages to repay debts to creditors. We hope for the understanding and cooperation of all.

Outline of the application
(1) Application date February 28, 2014
(2) Jurisdiction Tokyo District Court
(3) Counsel of applicant
Baker & McKenzie (Gaikokuho Joint Enterprise)
Attorney-at-law Junko Suetomi
Attorney-at-law Yamamoto Hideyuki
Yodoyabashi & Yamagami Legal Professional Corporation
Attorney-at-law Akio Shinomiya
Attorney-at-law Kazumasa Kawai

(4) Supervisor Nagashima Ohno & Tsunematsu
Attorney-at-law Nobuaki Kobayashi
(5) Investigator idem
(6) Case no. 2014 (sai) 12Civil rehabilitation commencement application

[sonatine]

1) i no longer believe the maleability bug was involved to any substantial extent. it simply makes no sense, from an architecture and application perspective as well as timing as well as the most basic common sense perspectives.. it falls so short of explaining what has happened that it really cannot be taken seriously any longer without substantial documentation and vetted peer review to fill in the cavernous gaps.

2) ummm every single time these guys get on the stage, the numbers change. first it was 400k bitcoins, then 744, and like 6 revisions later we are at 100k bitcoins and a substantial amount of cash (???).

3) is it possible that this is a government seizure? i fail to see how anyone would allow this charade to continue this long if it was.

4) another theory i heard was that they did not lose the bitcoins, they corrupted the wallet. either through the loss of the private key (unlikely), or a programming error which stored the bitcoins in a wallet with an invalid private key (definitely has happened before), or a NoSQL error has simply corrupted the bitcoin hashes during the transaction process.

the one thing i feel super confident of right now is that everything we have heard from gox is fucking bullshit.

b

[Salty_Aus]

1) i no longer believe the maleability bug was involved to any substantial extent. it simply makes no sense, from an architecture and application perspective as well as timing as well as the most basic common sense perspectives.. it falls so short of explaining what has happened that it really cannot be taken seriously any longer without substantial documentation and vetted peer review to fill in the cavernous gaps.

2) ummm every single time these guys get on the stage, the numbers change. first it was 400k bitcoins, then 744, and like 6 revisions later we are at 100k bitcoins and a substantial amount of cash (???).

3) is it possible that this is a government seizure? i fail to see how anyone would allow this charade to continue this long if it was.

4) another theory i heard was that they did not lose the bitcoins, they corrupted the wallet. either through the loss of the private key (unlikely), or a programming error which stored the bitcoins in a wallet with an invalid private key (definitely has happened before), or a NoSQL error has simply corrupted the bitcoin hashes during the transaction process.

the one thing i feel super confident of right now is that everything we have heard from gox is fucking bullshit.

b

750,000 BTC that belong to customers + 100,000 BTC belonging to Gox.

I believe if there was a theft, it was orchestrated and assisted by Gox

[Sanlmar]

Some $500k buys. Someone loading up.

Screaming out for a quick short. Little overextended. But that ain't me. Cool move.

Had a feeling lotta weak players already bagged out. Let's see if it holds

[PLOL]

Was just about to post. We're rallying here. Hitting BTC $675. Can't say they're not resilient