Mt. Gox "offline", taking bitcoin worth $375m with it

GigaOM: "The Bitcoin community is on edge as a leaked document (below) shows that the Mt. Gox exchange, a longtime pillar of the virtual currency, is missing hundreds of millions of dollars worth of customer money and is heading for bankruptcy."

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  1. I'm a trifle surprised that they made it as long as they did. Bitcoin may be architecturally sound; but, with the exception of some of the starry-eyed techno-utopian crypto nerds, the people and institutions around it give off that strong 'you are now swimming with the sharks' odor...

  2. There's an old adage...fool and his money...something something...

    With traditional currencies manipulated and fortunes wiped out each and every day by people far more nefarious (ahem Wall Street) than some who might operate in the world of bitcoin, I have to say it leads me to another adage...

    the devil you know.

  3. I hate to say I told you so but, oh, wait, no I don't.

  4. mathew says:

    No, not really. There was GBL, but that vanished taking all its customers' money. There was Bitfloor, who were the largest in the US, but they had a chunk of money stolen and then shut down, leaving people waiting to see if they'd get their money back. There were Bitcoin exchanges in India, but it turned out they hadn't bothered to get regulatory approval, so they shut down in a hurry. There was Dwolla, but they suddenly shut down their service because they couldn't make money from Bitcoin, doubtless partly because of its incredibly high volatility. Silk Road 2 offered escrow accounts, and then suddenly all the money vanished. It's almost as though Bitcoin attracts the criminal and incompetent, isn't it?

    Oh well, feel free to send me dogecoin at DR95Lqrz8UNmxdP6sgszKvvSza4cV65CC1. Nothing can possibly go wrong with dogecoin. So security! Much money!

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