• Tue. May 28th, 2024

Japan Subculture Research Center

A guide to the Japanese underworld, Japanese pop-culture, yakuza and everything dark under the sun.

#MtGox: The Bitcoin Exchange Eruption Timeline

How did Mt.Gox, once the largest #Bitcoin exchange fall apart and why couldn’t it be saved. (To the best of my knowledge) Magic Trading Cards & Magic Money–not so far apart.

Mt.Gox claimed to be one of the oldest and most reliable Bitcoin exchanges. It didn't quite live up to its PR. It went bankrupt on February 28th.
Mt.Gox claimed to be one of the oldest and most reliable Bitcoin exchanges. It didn’t quite live up to its PR. It went bankrupt on February 28th.
  1. #MtGox eruption not criminal fraud; bad management, bad accounting, & system bugs that went unfixed  http://thebea.st/1mJVXlS 


  2. #Mtgox timeline Pt 1: 2009 Magic: The Gathering Online eXchange (Mt.Gox) created. 2010 Becomes Bitcoin exchange (a logical progression)
  3. #MtGox timeline Pt2: 2011 Computer genius Mark Karpeles takes over Mt.Gox; as Bitcoin exchange company thrives. But software bugs unnoticed
  4. #MtGox timeline pt3: Circa 2012 “double cheeseburger for one flaw” etc result in bitcoin theft/leakage; problem noted but not fixed.
  5. #MtGox timeline Pt.4: 2013 Failure to do account reconciliation as company grow results in missed gap between cold storage btw actual stock
  6. In other words, the bitcoins in cold storage weren’t properly matched with the online transaction data etc. Reconciliation is the accounting term that would apply here.

  7. #MtGox timeline pt5: 2013 delays in withdrawals, trouble with federal authorities, seizure of cash, system problems hurt firm’s reputation
  8. Mt. Gox achieved something amazing. A D4 rating from Teikoku Data Bank. It’s a legendary bad score.  http://thebea.st/1mJVXlS 


  9. #MtGox timeline pt6: 2014/01/19 CEO moves residence from Setagaya to Meguro, registers it February 3rd. February 7th, withdrawals halted.


  10. #MtGox timeline pt6: Circa 02/20 Nearly 850,000 Bitcoins ($500 million) suspected missing confirmed Friday 02/21


  11. #MtGox timeline pt7: 02/22 Mt.Gox staff & legal guys hold brainstorming session. Plan to fix company, minimize damage to#Bitcoin & users


  12. #MtGox timeline pt8: circa 02/22 Crisis Strategy Draft created to help convince key Bitcoin players to keep company solvent, restart.


  13. #MtGox timeline pt9: 02/23 Karpeles resigns from board of the Bitcoin Foundation which oversees & develops currency. Informs them of crisis?


  14. #MtGox timeline pt10: 02/22-02/24 Winklevoss twins, Second Market, 3rd parties shown Crisis Strategy Draft. One leaks it to Two-Bit idiot.


  15. #Mt.Gox Timeline pt11: 02/25 Crisis Strategy Draft leak forces hand, Mt.Gox shuts down website, stops all transactions
  16. Japan’s Big #Bitcoin Heist  http://thebea.st/1mJVXlS  Note: This was posted 11:50 am Japan time, 6 hours before Mt.Gox declared bankruptcy.


  17. #Mt.Gox Addendum 2: Press release of bankruptcy announcment allegedly started circulating to select media Thursday afternoon 02/27
  18. Inside Japan’s Bitcoin Heist  http://thebea.st/1mJVXlS  The total amount of bitcoins missing; 850,000 ($477 million). I’d heard 820,000. Close!



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