Who remembers Mt. Gox?
The japanese exchange platform that went bankrupt in 2014, resulting in a loss of 850,000 Bitcoins (worth $500 Mio. back then, and almost $2 Million now) as well as $28 million of user money.
Today, the trial for former Mt. Gox CEO Mark Karpelès began in Tokyo.
He is facing charges for embezzlement and data manipulation, including charges for accessing the Mt. Gox system to inflate his account by $1 million and for transferring $3 million from a Mt. Gox bank account holding customer funds to one of his own accounts.
Karpelès had been arrested in autumn 2015 and was released on bail in 2016.
The 32 year-old frenchman pleads not guilty and "swears to god he is innocent".
He claims that the funds got lost due to unknown 3rd parties and an error in the computer system.
If Karpelès should be found guilty anyway, he could face up to 5 years in prison and a fine.
The Mt. Gox crash caused a huge uproar in 2014 and had a very negative effect on Bitcoin's reputation.
It symbolizes the weaknesses in the bitcoin system and many critics referred to this case to highlight the supposed "dangers" of cryptocurrencies.
I even knew someone who had funds worth $4 million in Mt. Gox and lost it - that's why I still get shivers whenever I hear the name of this platform.
Many users are still waiting to recover their funds, and hoping that this trail will give some more evidence to clear up the case.
Today, the news of the Mt. Gox trial might have influenced the cryptocurrency prices once again.
If you are following the events on coinmarketcap, you will have noticed that there was a major crash in the cryptocurrency prices last night.
All major cryptocurrencies experienced a sudden crash - some were hit harder than others, but all in all, the numbers are showing RED.
While Bitcoin crashed "only" 6.6% and is now on around $2360, other currencies like Ethereum, Ripple, NEM, IOATA or EOS experienced a crash of over 20% !
Now you might assume that these are bad news - but actually, this is an OPPORTUNITY!
This is the perfect time to invest, following the oldest rule of trading: buy red, sell green.
And even if you have invested in one of these currencies that crashed - don't panic sell, hold your coins, and if possible invest some more in other currencies so that you'll have a double profit once the prices rise again.
Do you know of any other reasons for the price crash? Tell us in the comments below!
© Sirwinchester
Its funny how we have this confluence of events. The biggest 'black mark' on the Bitcoin name (Mark Karpeles) is on trial for fraud as the currency is facing an existential crisis come Aug 1.
You're right, both events are coming together - let's see how this will turn out
People need to think long term, instead of this correction we are in right now.... I couldn't agree more and see this as a big buying opportunity.
i read in an article on CNBC that says bitcoin is falling due to two reasons - Exchange outages - now this is what i have been hearing everytime a fall in the cryptoworld happens, COINBASE has become the god of cryptoworld by controlling the price, every article says that there was coinbase outage which led to panic selling. i have started to hate coinbase now
Second is the high raise in ICO - perosnally i have always asked in various posts that is there a relation between the ICO and the falling price of crypto coins. i do not know for sure.
overall i do not think that we can sum up the entire fall in just 2 reasons, there is inception of events taking place nowadays. All we can hope is for a better tomorrow
Thanks for sharing, the coinbase issue makes sense. We'll see how the prices develop/recover in the next couple of days
Crashes are always a combination of factors. Take into account that Bitcoin has reached a big media visibility in the last couple of years and a mediatized trial like this hits hardly on mainstream investors.
There will be some more of these scams coming in this year. I won't mention any particular exchange but some of them are doing more sophistacted way of scam - manipulation of price, making people panic sell, buying low using bots to boost the price fast and then sell those coins for much greater price to the same people. This is going to last for some time. Decentralization is such a complex system to maintain
Decentralized exchanges are on the way. That is the problem with these exchanges they are still run the old fashioned ways. Cheers to the future.
Hmm, interesting that you mentioned that. You are right, decentralized exchanges are much needed.
I don't understand why people say that decentralised exchanges are on the way... they are already here since 2015! BitShares platform has that for ages (and there are other already out there)... the problem in my view is that people do not know about them and therefore do not use it enough for it to be attractive.
I think the legal teams for the Mt. Gox case should request payment in Bitcoin!!!!
"This is the perfect time to invest, following the oldest rule of trading: buy red, sell green."
The buy low, sell high golden rule.
"HODL"
The panic rule.
Some will say this is an opportunity to invest, but many have no deep pocket to invest anyway :(
I can only hold on to my coins and stay strong! How about you?
Follow me @Yehey
Of course you if you don't have a lot of capital it makes sense to start small.
But still, even if you only hold it and be patient it can still be worth the wait.
This is what I am telling my peeps... "KEEP ON STACKIN"! 😎🤑
I remember looking into trading bitcoin on the exchanges US/Russia/Japan using the Butter Bot, and then Mt. Gox crashed the market and I lost interest for years to come.
Yes, unfortunately the Mt Gox crash had many people hesitating to invest in cryptocurrencies.
I like to buy when everyone else is selling..
Exactly!
Mark is going to have to pay up... Money went missing and people are still hurt about it. It's going to be hard to find forgiveness on this issue.
The way I see it, these bear turns weed out the ones who don't truly believe in the technology. When celebrities are posting on Instagram that they just bought a "shit ton of BTC" and things climb as fast as they did you have to expect a correction to follow. Stay the course friends and we'll get our Lambos.
✅
Wasn't in the crypto market when the Mt. Gox thing went down... probably a good thing, from the sound of it. I know a few people have been "rumbling nervously" given the recent problems and delays at Poloniex... but what can you do? We have to trade SOMEwhere... and cryptos are still high risk assets to my way of thinking.
I'm in this (at least Steem) for the long run (years) so I see dips like these-- which seem to happen in ALL financial markets-- as an opportunity to buy in "on sale."
dips happening in openledger on those steem. at 1.03 in OL. Red candy crypto day. yesterday felt like cybermonday. steem for the long term and powerup.
What I say is that when the river sounds it is because stones bring.
Mark Karpeles, the chief executive of the infamous bankrupt Japanese bitcoin exchange Mt Gox, pled not guilty in court to charges of embezzlement and data manipulation today, according to a report by Reuters.
The trial proceeded in the Tokyo District Court on July 11, where Karpeles was indicted for diverting $3m in customer funds to his own account in late 2013, and allegedly, fabricating his account balance inside the exchange platform. The 32-year-old defendant denied such allegations.
Kolin Burges, a software developer in London and a Mt Gox creditor also president at the trial, said in a Tweet that "Karpeles admits operating Willy bot...but says it was for good of company so not illegal."
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As reported in 2014, the "Willy bot" was suspected of being the vehicle by which fraudulent trading activity was conducted on the exchange in 2013 during a rapid uptick in global prices.
The Japan-based bitcoin exchange first filed bankruptcy protection in February 2014, with an outstanding debt of ¥6.5bn ($63.6m), amidst a loss of 85,000 bitcoins, which according to Mt Gox's explanation was due to a software security flaw that was breached by hackers.
The case became prominent as 75,000 of the stolen bitcoins belonged to Mt Gox customers, a fact that did much to raise eyebrows regarding the security, safety and regulation issues around cryptocurrencies.
Still, it's worth noting the collapse has had a broadly positive impact on domestic markets, as in April this year, Japan became the first country in the world to regulate bitcoin as a legal payment method in response.
Mark Karpeles image via CoinDesk archieves
[Source]http://googleweblight.com/i?u=http://www.coindesk.com/mt-gox-ceo-mark-karpeles-pleads-not-guilty-embezzlement/&grqid=9D6-ROvt&hl=en-IN
Nobody knows the real reasons for Crypto increasing or decreasing. There are so many new "investors" in crypto that the "average nerd" is continually losing market share and being pushed out of the now-"mainstream" currencies by institutional investors. It was bound to happen, but we shall see how long it lasts and how much the little guy (read: average nerd) will gain (or lose)
True, there are so many different factors that play into cryptocurrency price development, so it's hard to say what exactly caused the crash!
so this could be causing the crash ?
damn it
maybe just one of them but it aint helping haha
Thanks. Upvoted. Resteemed.
Thank you for the support!
Yes. It's time to invest :-)
Exactly, now is the perfect time!
VOTA POR MI
Amazing post. good post @sirwinchester.
Amazing post.
I will be taking advantage of this big pull back to buy some crypto's that's for sure. Thanks
You definitely should, now is the perfect time!
"IIIIIIIIT'S TIIIIIIME!" -Bruce Buffer
Open up your wallets!
This is the time to buy some crypto. They are going to bull soon.
Not sure that it matters very much in the long term. Here is a great explanation on the way the Blockchain actually makes a difference in everything. http://bit.ly/2t0FlTX
Depolitization of bitcoin started when these corporate monkeys in suits started to "clean" its name using the blockchain concept: new technology without financial freedom fighting.
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Now , i think the actual opportunity to invest will be after the trial , if people recover their coins they probably will try to cashout ther investment and sell , driving the prices low . Altough , im skeptical they will manage to
@sirwinchester
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Thank you for the wisdom, it is worth looking into even for the non-techies!
Thanks. Upvoted
Never heard of Mt. Gox. It's a logical correlation, would keep reading other influencive users comments under the post. I'm still pretty new to give any kind of opinions.
i agree we must hold for the long term!
Great read! This was the saddest moment in the history of Bitcoin, IMO.
Hey I think you meant that the 850.000 Bitcoins lost would now be worth 2 Billions, not Millions.
Thanks for the great read @sirwinchester
Thanks for this informative post.
i agree with you @freedomnation. nice post @sirwinchester
Just waiting for 25th July to start buying again!
@sirwinchester i believe the era of MT.Gox wont happen again... thanks for this helpful post... you the best