Mt Gox was insolvent before it was sold to Karpeles. Follow the US' indictment of BTC-E founder for parallel details. tl;dr BTC-E had hacked basically every e

Mt Gox was insolvent before it was sold to Karpeles. Follow the US' indictment of BTC-E founder for parallel details. tl;dr BTC-E had hacked basically every exchange for those fairly worthless internet points and giggles, and was selling them for cheaper on its exchange in a massive and ongoing laundering/mixing scheme that could only benefit the founders and people with accounts in Bulgaria, Romania and Russia