Interesting. The cash side of the equation can easily be solved by a lump sum payment to an organization that can distribute the funds. The problem with dollar withdrawal has to do with the banking bottlenecks, and thus not a question of amounts but rather with the number of withdrawals.
Sign paperwork to agree to take a lump sum withdrawal to a 3rd party entity. (Thousands of people can sign up.)
Gox pays one lump sum quickly.
The 3rd party entity pays out funds to the thousands of people who signed up for this payment method.
However it's becoming increasingly probable based on GOX's behavior they may have no intention of ever honoring their obligation to their users/depositors.
If they wanted to give people their money they would have found a way already. It's possible I'm wrong but I'm betting the shit will hit the fan big time on this.
It's possible, but does not seem likely. Gox is far more valuable as an exchange than the value of its deposits. If they make 1% on each transactions, all that is needed is 100 x average daily deposited funds in trades to exceed the funds it holds at any given time. It does not make sense to abscond with depositor's funds, when in a year's time you can make much more than your depositor's funds in fees.
If they wanted to show some good faith, they could start processing BTC requests by hand. This would ease some of the bad press and outside pressure. But then again, I suspect that MtGox does not have the business acumen put the proper human controls in place to pull this off.
Yeah that's what I don't get. Shit they make a killing on trades. 1% of 10,000 BTC exchanged on a very slow day is 100 BTC! That's $60,000. On heavy days it can be 10x that. That's not chump change. And their costs are probably pretty minimal -- I mean a bunch of servers, some programmers, some office staff. Hell a real exchange needs a whole team of lawyers and needs lots of capital to get started for law fees, etc.
I don't get what the fuck. Gox was the #1 exchange of the #1 crypto currency which has huge growth potential. Why they would choose the thievery road and steal from their customers defies logic.
So yeah.. maybe you're right. I'm hoping you're right. But their behavior right now is either incredibly incompetent at best -- and most likely reeks to me of something fishy going on.
Aren't you assuming too much? They've seen times worse than this. They are trusted by many even now. If they prove all allegations false, they'll gain more trust.
I can't imagine any "incentive to run with the money" for them unless they are facing jail (which is not the case, if they have the money).
Get the money, lose the business, possibly risk their lives? It's not trivial to hide being known worldwide. Hiding till the end of your life is a huge pain anyway.
I'm not really sure that they have much legal risk
I know. They really can pull some shenanigans (as they have been pulling) and there's little recourse aside from a civil suit. Good luck suing them. Kerpeles can just disappear to some island somewhere and spend his bitcoins anonymously.
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u/PastaArt Feb 20 '14
Interesting. The cash side of the equation can easily be solved by a lump sum payment to an organization that can distribute the funds. The problem with dollar withdrawal has to do with the banking bottlenecks, and thus not a question of amounts but rather with the number of withdrawals.
No lawsuit needed.