MtGox: All history, no future

Posted on March 3, 2014


Really handy timeline of MtGox problems from Rick Falkvinge that goes into what happened when. In my eyes, the scenario stinks of MtGox being very aware of a ‘problem’ with the Cold Storage, but desperately trying to come to a solution – everything happens gradually, and the amount of secrecy gets ever more toxic.

The transaction malleability bug is a handy excuse for MtGox to hang their issues off, but a lot of people are surmising the issue even goes all the way back to 2011, when large numbers of coins seemed to be split up and moved around in what could be seen as an attempt to launder a large amount of coins.

Whichever, with the alleged release of the MtGox source code today, plus MtGox’s ongoing star-crossed announcements, it’s clear we’re seeing something similar to the demise of Bitcoinica. That’s to say – lax security, small hack followed by larger hack, site withdrawal problems, and source leak. Any attempt now to bring MtGox back up (or indeed to do anything slightly dynamic) puts the scenario further into risk – MtGox are obviously no longer in control of their money, their code, or their future.

Extra link: Arrested ex-CEO of BitInstant Charlie Shrem drops an inside line on Mark Karpeles and MtGox.