Silk Road forums

Market => Rumor mill => Topic started by: RandomFellow on December 29, 2011, 03:20 pm

Title: MTGox
Post by: RandomFellow on December 29, 2011, 03:20 pm
I must be the last person in the world to know that MtGox is now cooperating with LE. Tried to withdraw some BTC and was informed I could not do so unless I sent them scanned copies of ID documents. They claim they will keep them secure. Then when you read the fine print they say they won't disclose unless required to by LE. LE where? What country? What jurisdiction(s)? Who in their right mind would scan and send anybody their passport details, let alone a BTC vendor, sheesh! Something stinks at MtGox. So I guess my money is gone. Anybody else been burned this way?
Title: Re: MTGox
Post by: mrmdma on December 29, 2011, 04:42 pm
Hello,
fellow European here and I too just realized this shit. I gave it a little thought and decided that I won't let it bug me too much.
First of all, buying BTC is not illegal. If you wash them through numerous sites, instawallets and so on. The LE can't possibly be able to trace them.

So what if the cops get your ID? If you have done everything correct from the start, the whole ID thing won't be the thing that will get you caught. Also, if you know someone, a friend or so. Ask him to buy the coins for you, don't discuss about it on any social media like facebook etc. Keep it simple. Man speaking to man, face to face. Give him the instawallet address (open with tor of course) where you'd like him to wire the coins to after purchase. Now spin the coins around from wallet to wallet and voila, good to go?

Title: Re: MTGox
Post by: dunk on December 29, 2011, 04:47 pm
Or use a different exchange.
Title: Re: MTGox
Post by: queryox on December 29, 2011, 05:11 pm
Ive used mtgox for about 12 transactions now, never had a problem with it, never been asked for any documents either.
Title: Re: MTGox
Post by: edgarb on December 29, 2011, 09:21 pm
as i understood it, mtgox require id for withdrawls above a certain limit, this is standard procedure.  mtgox, like 99.999% of companies, will cooperate with LE if *required* to do so.  mtgox is the largest btc exchange site by a large margin, i'm guessing that a lot of people are happy with the service they provide.  unless you are trying to launder money, send them your id and get your coins.  in the future, read the small print before depositing and post in the correct area of the forum, keeps things tidy ;)
Title: Re: MTGox
Post by: Ineluctable on December 29, 2011, 10:08 pm
Are you still able to withdraw your bitcoins as MtGox codes? Used to be that you could take those codes and redeem them on a new account, and bypass the limits that way.
Title: Re: MTGox
Post by: Ineluctable on December 29, 2011, 10:11 pm
If you've exceeded your BTC withdrawal limit you should still be ok on fiat currency withdrawals...worst case scenario sell back the BTC and get money - withdraw those as MtGox codes...

I'm assuming they didn't lock your account down completely - just the standard withdraw limits - if they did that would definitely suck. :(
Title: Re: MTGox
Post by: NeveWitch on December 29, 2011, 11:58 pm
I haven't had any problems with MTGox, but I'm a US-based user. These links may be of interest.

https://support.mtgox.com/entries/20471711-security-measures-explained

https://support.mtgox.com/entries/20568322-all-eur-transactions-will-be-temporarily-suspended-within-europe-with-immediate-effect

Or, they might've marked your account for review to check for money-laundering. I've only been a buyer, though, so I haven't had any reason to convert back to non-BTC currency.
Title: Re: MTGox
Post by: RandomFellow on December 30, 2011, 03:50 am
I have only made about a dozen transactions. I had not used them since September. My balance was about 20BTC (yes twenty!) I tried to withdraw 5 (yes five.) My balance has never exceeded 100 BTC. The explanation given was that my account had been flagged because I was accessing the site from different IP addresses. Well duh! I'm using TOR.
As recently as five minutes ago their withdrawal page still misrepresents the conditions under which a deposit is accepted.

I have given them 12 hours to permit me to withdraw my small balance or I will take it as an intention to permanently deprive me of my money, and in most of the world this is the definition of theft.

And no I won't be sending them scanned government ID documentation showing my home address.

It is not much money and I can't really do anything about it except post the details of the matter to forums like this. I will also post the text of exchanges with their help desk here. The principle of good faith is important in the world of bit coin.  They have demonstrated bad faith, and now a possible intention to steal my money. Screwing over little customers because the amounts involved don't justify remedial action is a sure sign a trader is indifferent to their customers.

Title: Re: MTGox
Post by: RandomFellow on December 30, 2011, 04:09 am
Some background:

I joined MtGox after the scam back in June. I thought the way they handled that admirable. Many large public companies could have learnt from the way they handled that crisis. The terms and conditions under which I joined did not require personal ID (nor even an email for that matter.) We entered into an agreement at that time. I deposited some funds never more than about $US100, and I played around with it for a bit making a few micro trades to see how it and BTC worked.  I have not used the account since about September.

I pointed a friend to the site the other day as an above board exchange trader. When I logged on to demonstrate to this friend I read the updates regarding security including the fact that I could withdraw up to 400BTC without verification (this promise remains on their withdrawal page.) The security measures seemed reasonable as they are dealing in Fiat currency and are subject to the banking laws in the jurisdiction in which they operate. If they are trying to avoid breaking the law and being used as a tool for money laundering good luck to them. However the promise that I could withdraw funds remained. I trusted that promise.

Now I am informed, after depositing funds (my whole paltry wallet of about 20BTC), that my account has been frozen because I access the site from several different IP addresses.

As I said I will post the exchanges with the help desk here if they do not let me withdraw my BTC in the next 12 hours.