Joint Statement Regarding Mt. Gox

For immediate distribution: February 24th, 2014 — 10:00 PM ET

The purpose of this document is to summarize a joint statement to the Bitcoin community regarding Mt.Gox.

This tragic violation of the trust of users of Mt.Gox was the result of one company’s abhorrent actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants. As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.

We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that bitcoin offers as the future of payment in the Internet age.

In order to re-establish the trust squandered by the failings of Mt. Gox, responsible bitcoin exchanges are working together and are committed to the future of bitcoin and the security of all customer funds. As part of the effort to re-assure customers, the following exchanges will be coordinating efforts over the coming days to publicly reassure customers and the general public that all funds continue to be held in a safe and secure manner: Coinbase, Kraken, BitStamp, Circle, and BTC China.

We strongly believe in transparent, thoughtful, and comprehensive consumer protection measures. We pledge to lead the way.

Bitcoin operators, whether they be exchanges, wallet services or payment providers, play a critical custodial role over the bitcoin they hold as assets for their customers. Acting as a custodian should require a high-bar, including appropriate security safeguards that are independently audited and tested on a regular basis, adequate balance sheets and reserves as commercial entities, transparent and accountable customer disclosures, and clear policies to not use customer assets for proprietary trading or for margin loans in leveraged trading. It does not appear to any of us that MtGox followed any of these essential requirements as a financial services provider.

The following industry leaders stand by this statement:

Fred Ehrsam — Co-founder of Coinbase
Jesse Powell — CEO of Kraken
Nejc Kodrič — CEO of
Bobby Lee — CEO of BTC China
Nicolas Cary — CEO of
Jeremy Allaire — CEO of Circle

102 thoughts on “Joint Statement Regarding Mt. Gox

      1. No-one knows the real names of the guys running that exchange. If the exchange disappeared tomorrow, there’d be no-one held accountable. Welcome to the early days of Bitcoin, aka the ‘wild west’.

    1. *****Because you can’t trust them. We don’t even know what country they are in. Even if we did, is it somewhere you can do something to get back you money if they run away with it?****

      I say that about every day.

      Don’t trust BTC-e until they can prove their trust.

      1. They have proven their trust over the past 2 years. Don’t forget, we also don’t know what country Satoshi Nakamoto is in – i.e. that fact is irrelevant.

      2. Satoshi Nakamoto couldn’t run off with your wealth no matter how hard he tried, because the code is open source and has been inspected over and over for years. So what country he originates from is irrelevant.

        BTC-E however, can run away will all your coins easily. The fact that they haven’t during the past two years doesn’t mean anything. After all, people were using GOX for at least two years and look where we are today.

      3. Please do your homework…

        And just to make this quick, you can actually get information who is behind BTC-E pretty quick, what else they are doing, where the companies are registered and who’s the CEO.

        Everyone knew the bank Lehman brothers and where are they today and the next question is, where is the money, beside that what the tax payer is paying?
        From my point of view, your statement is irrelevant. Obiously you haven’t worked with the BTC-E platform and you are not qualified to make that kind of statements. If you have lost money or Bitcoins with MtGox, well there you can make a statement that you can’t trust MtGox, but do not talk about something you don’t have any experience of. Bitcoin is about trust and not disclosing to much of your private data or information, if you like. If you don’t take risks to trust a company or another individual because they didn’t prove themselves to you, my advice to you would be to abandon BItcoins until you have everything regulated as you would wish to have.

    2. The only company I would trust now is “In Bitcoin We Trust” UK based company with all contact details. The trading is low on this site, but I exchanged emails and talked with Joel. he is confident and has taken personal interest in contacting each user.
      I would give ***** (5) to him and his portal!

    3. Do you know the name of the owner of MTGox and is it useful for you? Russian guys from BTC-e provides the most convenient and available service without pointless verification. So let’s just say thanks to them. Spasibo mujiki

  1. removed the word “insolvency” from their version of this statement. Is it significant that you have not removed “insolvency” from yours. Do you have proof of their insolvency?

  2. Coinbase’s version of this statement omits any reference to insolvency. Also, the original title of your statement included the word ‘insolvency’, but has been removed (although the body of the text still includes it) – what’s going on?

  3. “It does not appear to any of us that MtGox followed any *OF* these essential requirements as a financial services provider.”

      1. do your homework kids before spouting off lol
        he is 100% correct next time watch your mouth 😉
        i hate the internet and all the little lippy brats 🙁

        1. You’re wrong. Mt. Gox was bought out roughly a year ago. It’s no longer run by the video game nerds who founded it, it’s run by people who saw Bitcoin’s rise months in advance. Do your homework before being stupid.

  4. When I first got into btc almost two years ago I looked at a bunch of exchanges before choosing one. I didnt go with mt gox for one reason – they cited wikipedia on their front page claiming they handle 80% of all btc transactions. Anyone who cites wikipedia alone is full of shit, it doesnt mean anything if it just says something in Wikipedia, never mind the whole Magic the Gathering thing. If you lost your money on Gox you are officially a bonified sucker. I mean who would trust their coin to a bunch of clowning wizard nerds backing up their claims with some wikipedia article.

    1. Look…we have a codes of conduct, they’re driven by the Securities & Exchange commission, the Federal Trade Commission, etc. and all the rules they impose on our behalf when we invest with reputable companies. I am by no means a fan of big government, but I only have to quote from the Bitcoin “leaders” own joint message to make my point. “Acting as a custodian should require a high-bar, including appropriate security safeguards that are independently audited and tested on a regular basis, adequate balance sheets and reserves as commercial entities, transparent and accountable customer disclosures, and clear policies to not use customer assets for proprietary trading or for margin loans in leveraged trading. It does not appear to any of us that MtGox followed any these essential requirements as a financial services provider.”
      These are exactly the things all those rules we already have are trying to accomplish.
      All the Wall Street hating, oober liberal, cyber idiots who put their money into “wallets” held by an invisible entity that purports to be reputable, with no traceability or accountability, and no real understanding of how the value of that money will change via the action of the currency exchanges…and no idea how to retrieve it when some steals it deserves to lose it. They obviously don’t realize these are not new lessons, and that some of the seemingly ridiculous rules we have exist for a reason…people are greedy! Given a chance many will steal everything you have, and they’ll smile and tell you it’s ok every step of the way. If Bitcoin and most of it’s peers doesn’t turn out to be revealed as the largest pyramid scheme of all time I’ll be very, very surprised.

  5. Well, the other day on Letstalkbitcoin Andreas Antonopolous seemed pretty confident that there was no insolvency. I thought him and Blockchain were working closely with mtgox and would know what was happening. Apparently not.

  6. Guys how about you prove to us you are solvent? I don’t see any proof that you guys are. Many of you had the same bug…

  7. You say in your statement that bitcoin providers need audited safeguards and adequate balance sheets. Do you publish audited financial statements for your customers? For the public who may be thinking of doing business with your institution?

    Would you?

  8. Whether we are talking about the problems of centralized exchanges and / or Mt. Gox specifically, or the problems inherent in the notion that “regulation” or “laws” of “nation-states” will somehow solve society’s problems, one of the things that this Mt. Gox debacle should emphasize (and while I have never had any dealings with nor account in Mt. Gox, I am truly sorry for those that do or did) is that we should definitely support code and development work which strives to put into place peer to peer trade that is managed straight from your wallet. It’s possible that this may be the sort of thing that becomes available gradually, sort of like the plugin concepts that you see in some software programs. Or it may be that as with the Chromawallet development, not only is there a protocol for decentralized exchange but you will be able to do it with a simple selection from a primary screen in a wallet. Much work will be required to ameliorate the issue of the exchanges, this is not to say that many exchanges have not dealt with the various issues and problems that can occur, but an underlying problem as yet unaddressed relating to services running through websites is the problem of centralization, and we cannot get away from it, it is what has caused many to begin the process of migration towards use of decentralized virtual protocol and where we are now with bitcoin. Onward.

  9. Reblogged this on StREAk and commented:
    As some of you all know, I use Bitcoin to funnel money from my overseas accounts into my American bank account to pay bills. To this end, I had been using Mt Gox since 2012 because it was the only Japan-based exchange and would let me tie into my Japanese bank accounts there.
    Moreover, I became a “lurking” member of the Tokyo bitcoin meetup scene, trying to learn about BTC from the people who know it best.

    Now I’m wondering a few things…
    1. Since there’s no more MtGox as far as I’m concerned, how can I do what I was doing before without the crazy fees for wiring fiat?
    2. Is this the perfect time for someone like me to gather a group of people to try to do what Gox was doing in Japan? (only much better, obviously)

    Being that I speak/read Japanese, and have ties all over the region, and the fact that I really want to step in and do something right in that space… So if anyone is organizing ANYTHING….let a brother know.


  10. Unfortunately the Statement do not explain what really happens to MtGox… Bitcoins can’t leave the Blockchain so they can’t get lost except MtGox has forgotten the private keys of their costomers.accounts.

  11. Lost on the mainstream media: regulations (which initiate force and break individual rights) and laws against fraud (which protect individual rights and do not initiate force) are two different concepts.

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