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posted by janrinok on Monday March 03 2014, @04:00PM   Printer-friendly
from the tell-me-it-aint-so dept.

unitron writes:

"Via Twitter, Cmdr Taco passes this along

'A crazy theory, MtGox had its btc seized by us govt during Silk Road investigation, but gag order prevents disclosure'

The actual article, by Chris Pacia (who links to and credits PuffyHerb on Reddit for most of the thinking behind it), is here:

http://chrispacia.wordpress.com/2014/02/28/this-is -what-most-likely-happened-to-mtgox/"

[Ed's Note: The paragraph above is pretty much how it was received. I leave it up to the readers to draw their own conclusions on the plausibility or otherwise of this report and the linked article. It is, by its very nature, speculative but worthy of further discussion nonetheless.]

 
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  • (Score: 1) by Non Sequor on Tuesday March 04 2014, @11:29PM

    by Non Sequor (1005) on Tuesday March 04 2014, @11:29PM (#11055) Journal

    I think we're on close to the same page.

    To be clear, I doubt they would have paid trades with any kind of money they are holding for a customer (trade completed but not withdrawn) but I believe paying a 100 bitcoin seller with the inflow from a 100 bitcoin buyer is, in itself, kosher. I'd expect nonkosher actions would have run them into a wall sooner than they did.

    But I think it's plausible that: they could write an exchange platform, that platform did not have any glaring issues, but eventually they ran into a ditch because they lacked funding and risk controls to keep things operating when the cashouts substantially exceeded buyins. If that's the case, then this should just be regarded as the expected outcome of an ill-advised adventure.

    --
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