4 ms·

My point was not whether they were "stealing" their money, it's that they weren't an entity you should be trusting with substantial amounts of money. Whether th

by ebbv 13y ago

My point was not whether they were "stealing" their money, it's that they weren't an entity you should be trusting with substantial amounts of money. Whether they lost it by malicious action, inept accident or by themselves being stomped on by some larger entity (the government in this case), it was/is foolish to trust an organization like Mtgox with lots of your money.

yebyen 13y ago
It's kind of impressive that they can just lose 5 million like that and go on doing business. Actually I don't know if impressive is the word I was looking for...
- wmf 13y ago
  They claim that they've made around $9M in fees this year, so in theory they can probably swallow a $5M loss.
  - yebyen 13y ago
    As long as some portion of that $5M eventually goes towards licensure and bonding, or is returned, I'm counting it as forward progress to have that money seized. I don't know the likelihood of that honestly but I would certainly be more ashamed of my own government than already this month if it was simply "appropriated" and not returned or counted.
- fnordfnordfnord 13y ago
  Look at their fees and trading volume, you'll see why right away. They are/were killing it.
  - bdcravens 13y ago
    Hardly. They make about 1% of their volume. At 20K volume (about what they see these days), and $120/BTC, That's about $24,000 a day in revenue, half of which is USD. About $4.3M a year in USD. They just had $5M locked up. They're surviving because they're not letting go of any of the USD they have, or at a trickle. I've heard numbers along the lines of they had $10M in April. They can't pay salaries and infrastructure costs in BTC, so they're holding on to what $ they have for as long as they can. Eventually they'll have to start releasing their BTC into the market to get $ out, but they know that will have a negative effect.

4 ms·

My point was not whether they were "stealing" their money, it's that they weren't an entity you should be trusting with substantial amounts of money. Whether th

by ebbv 13y ago

yebyen 13y ago
It's kind of impressive that they can just lose 5 million like that and go on doing business. Actually I don't know if impressive is the word I was looking for...
- wmf 13y ago
  They claim that they've made around $9M in fees this year, so in theory they can probably swallow a $5M loss.
  - yebyen 13y ago
    As long as some portion of that $5M eventually goes towards licensure and bonding, or is returned, I'm counting it as forward progress to have that money seized. I don't know the likelihood of that honestly but I would certainly be more ashamed of my own government than already this month if it was simply "appropriated" and not returned or counted.
- fnordfnordfnord 13y ago
  Look at their fees and trading volume, you'll see why right away. They are/were killing it.
  - bdcravens 13y ago
    Hardly. They make about 1% of their volume. At 20K volume (about what they see these days), and $120/BTC, That's about $24,000 a day in revenue, half of which is USD. About $4.3M a year in USD. They just had $5M locked up. They're surviving because they're not letting go of any of the USD they have, or at a trickle. I've heard numbers along the lines of they had $10M in April. They can't pay salaries and infrastructure costs in BTC, so they're holding on to what $ they have for as long as they can. Eventually they'll have to start releasing their BTC into the market to get $ out, but they know that will have a negative effect.