One False Move Might Have Become Fatal for Mt.Gox and Karpeles

The only irreversible thing is believed to be death. The flow of time prohibits weak human beings to interfere and return to life ones, who have lost it.

12 Total views
0 Total shares
One False Move Might Have Become Fatal for Mt.Gox and Karpeles

The only irreversible thing is believed to be death. The flow of time prohibits weak human beings to interfere and return to life ones, who have lost it. Close to this absolute threshold of eternity are two crucial aspects as trust and reputation. A small slip or false move observed through the magnifying glass of fame and fortune might bring any career in a dead end. 

Karpeles, the CEO and owner of the once leading exchange service Mt.Gox, is passing steps of the modern financial abyss. Now, it is important to determine whether the recent events will drown him for a while with some excessive funds left enough for a happy life or the misfortune has almost anecdotic reasons.

First circle of Hell

The first circle of Hell was about two weeks ago. The inconsistence of the company was reasoned with insolvency of the Bitcoin protocol on the 11th of February. Such poor explanations have led to next levels - termination of withdrawals, Mr. Karpeles resigning from a leading position at the Bitcoin foundations and active investigations in the cryptographic environment. 

The analytic attempt of numerous users can be found on Reddit and other related forums. The most conclusions obtained by self-assured detectives blame Karpeles of theft and fraudulence. The masses are shouting out a question that bothers the society: “Mt.Gox, where is our money?”. Anyway, it seems the most intuitive and obvious scenario, otherwise there is no use to harm a relatively successful business providing stable income, having natural potential of further growth.

Strong evidence and proof

Another point of view seems to be almost fantastic, if there would not be even more strong evidence and proof of the voiced assumptions. 

The Reddit user under the nickname jutajata retrieved and published a dialogue from the middle of 2011. There was already a delay in withdrawals of funds in June of that year. The user under the name MagicalTux is believed to be Karpeles, promising to resume trade in an hour, but the overall operation in less than 24 hours. He was willing to prove his competence and openly transferred around 550 000 BTC as a guarantee for his existing and potential customers. Following the Block Chain has allowed to determine that 200 000 Bitcoins have not been moved since the time of the conversation. 

The reason proposed is very simple – the keys are lost or unavailable for some other important reason.

Mark Karpeles

Loosing of the Private Keys

The participation of a third party, acquisition of private keys from Mr. Karpeles or self-willed presentation of them, brings us, the observers, in any case to the fact of crime and the necessity for authorities as police to interfere. The only one opportunity to comfort the former owner and CEO of the exchanger might be a plain loosing of the private keys. 

The inaccessible coins are floating in the system, playing the part of a pear, stomach can't bear. If it is true, it does not mean that all accusations have to be lifted and forgotten, but how such a scattered person could have been in charge of money belonging to numerous users from all around the world? Was he unable to provide a hard grip on the situation? Where did he keep the private keys? In hardware sent to the dump?

The way it is

The attentive followers and investigators could have noticed the stuck coins earlier, but it would not help to find a way out. Now it seems to be true as the spokesperson and advocate of the company is opting for the bankruptcy status for the company as around 70 000 BTC are missing with no ability to pour them into the trading routine.

The CoinTelegraph, in the person of the editors and journalists does not support any of the possibilities or accusations, but is willing to turn the prism of the event to scatter the ray of information and to acquire different points of view. We are grateful for your comments and appreciate opinions. Please feel free to express your emotions and start a discussion. 

×

Hottest Bitcoin News Daily

For updates and exclusive offers, enter your e-mail below.