[HN Gopher] Mt. Gox CEO Karpeles Reveals Details of 2014 Collaps...
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       Mt. Gox CEO Karpeles Reveals Details of 2014 Collapse and Japanese
       Detention
        
       Author : giuliomagnifico
       Score  : 65 points
       Date   : 2025-12-24 16:21 UTC (6 hours ago)
        
 (HTM) web link (bitcoinmagazine.com)
 (TXT) w3m dump (bitcoinmagazine.com)
        
       | optimalsolver wrote:
       | "So you're telling me there's a financial exchange for Magic The
       | Gathering players? How do I put all my money in this?"
       | 
       | -Someone in 2010
        
         | djaouen wrote:
         | Don't joke: I once knew a kid who invested all his savings in a
         | company because he liked computer games; that company was
         | Nvidia!
        
           | versavolt wrote:
           | Indeed, obscene wealth is never funny
        
           | mistrial9 wrote:
           | bet he won't return your phone call now !
        
             | djaouen wrote:
             | We fell out of contact long before Nvidia blew up: hope
             | he's doing OK!
        
           | ekropotin wrote:
           | That's cool, but kids usually don't have a lot of savings.
        
             | mothballed wrote:
             | Passing KYC for a brokerage is also a challenge nowadays,
             | especially if your parents have the paperwork.
             | 
             | When I was a kid I walked into a bank, opened an account
             | with no ID and no parent permission, and that was that (I
             | encouraged a friend to do it as well, their overbearing dad
             | raged at the bank after he found out but even then it
             | wasn't closed). Can't imagine that's even possible anymore.
             | 
             | Of course it wasn't that long ago there were bearer shares.
             | You could just hand a kid a physical piece of paper, and
             | that was that, they owned part of the company. Bearer
             | shares were another thing eliminated after the FATF went on
             | their sadistic attack on privacy and self custody of many
             | forms of financial instruments, eliminating one of the
             | easiest ways for kids to handle investments directly in
             | their hands.
        
               | lifestyleguru wrote:
               | Nowadays you cannot even digitally transfer 15k EUR from
               | your own bank account to your own brokerage without
               | answering invasive questions, 15k EUR which had been
               | taxed at least once already. Oligarchs, dictators, high
               | figure politicians, and white collar criminals don't seem
               | to have problems with money transfers though.
        
         | AlotOfReading wrote:
         | As one of those people, the original meaning behind the name
         | wasn't widely known. Plus, the dozen or so bitcoins I bought at
         | <$1-10/coin were probably going to end up worthless, so
         | preventing their loss wasn't a particularly big concern.
        
           | le-mark wrote:
           | This was exactly the thought process too. If I could send 8
           | characters back in time to myself they'd be "BTC 100K".
        
             | Loughla wrote:
             | Dear Loughla,
             | 
             | Keep the Bitcoin. The pot you'll buy with all 10 of them is
             | mostly seeds and stems.
             | 
             | From, Very upset future Loughla
        
         | mcculley wrote:
         | A lot of people seem to still use the service that was first
         | hosted at airbedandbreakfast.com despite an unwillingness to
         | rent an airbed.
        
       | ggambetta wrote:
       | I want my 5 Bitcoin back :_(
        
       | wmf wrote:
       | I think this article undersells his criminality; "falsifying
       | records" is a pretty kind way of saying he covered up insolvency
       | and massively manipulated the Bitcoin market.
        
         | pimlottc wrote:
         | It's a complete puff piece. Poor guy, surrounded by crooked and
         | incompetent people. 80,000 bitcoin just disappeared somehow!
         | Oops! Fortunately he's sleeping better and shredded now. Love a
         | story with a happy ending!
        
           | Analemma_ wrote:
           | PR campaigns to rehabilitate white-collar criminals so they
           | can resume their activities are an old practice, but have
           | been supercharged by the internet and the ability to use
           | oppositional culture war framing to get people on your side.
           | Elizabeth Holmes and Martin Shkreli are both out of prison
           | and running big rehab campaigns, and Sam Bankman-Fried is
           | clearly angling for a Trump pardon (see his mom's big open
           | letter and all the submarine stories lately about how "nobody
           | actually lost any money at FTX! what was the crime??")
           | 
           | It's especially big in crypto because the whole community has
           | a conspiratorial "the System is against us" mindset, and if
           | you can successfully tap into that and convince people "I was
           | targeted by The Man, man" all your crimes can be washed away.
        
             | Chris2048 wrote:
             | AFAIK Elizabeth Holmes is still in prison?
        
             | mkl wrote:
             | Elizabeth Holmes is still incarcerated.
             | https://www.businessinsider.com/elizabeth-holmes-theranos-
             | fo...
        
       | mvkel wrote:
       | Time heals all wounds, even self-inflicted ones. I don't sense
       | much remorse from this guy.
        
       | ilamont wrote:
       | The article mentions he was convicted of falsifying records. Kind
       | of surprised Japan lets foreigners with criminal records stay in
       | the country.
       | 
       | And:
       | 
       |  _At shells.com, his personal cloud computing platform, he's
       | quietly developing an unreleased AI agent system that hands
       | artificial intelligence full control over a virtual machine:
       | installing software, managing emails, and even handling purchases
       | with a planned credit card integration. "What I'm doing with
       | shells is giving AI a whole computer and free rein on the
       | computer", a brilliant idea, really. AI agents on steroids._
       | 
       | Like managing other people's crypto, it seems like an idea that
       | could actually blow up your face.
        
         | mschuster91 wrote:
         | > Kind of surprised Japan lets foreigners with criminal records
         | stay in the country.
         | 
         | Many countries have no issue with that, serving time is
         | considered enough of a punishment. The idea of (especially
         | mandatory) deporting of criminals is relatively new, driven
         | primarily by the far-right.
         | 
         | IMHO it is unethical for two reasons - first, it violates the
         | principle of every human being equal under the law because
         | clearly non-citizens have a second punishment on top, second
         | because in many cases (although not in this one) the target
         | country isn't equipped to deal with serious criminals - that's
         | how the US got MS-13 and other gangs causing trouble in South
         | America in the first place.
        
           | anonymous908213 wrote:
           | Deporting criminals is in no way a new concept. In fact, it
           | used to be commonplace to deport your own citizens, not just
           | foreigners. The modern nation of Australia exists as a result
           | of such a policy! Japan will certainly deport you for drug-
           | related offenses or violent crimes, but like most places,
           | white collar crime is not treated as "real crime", even
           | though the impacts are usually more severe than a simple
           | shoplifting or robbery.
           | 
           | Incidentally, if Germany had deported a foreigner who led an
           | attempted coup d'etat, perhaps it would have saved tens of
           | millions of lives. The things people get away with a slap on
           | the wrist for...
        
             | mschuster91 wrote:
             | > Deporting criminals is in no way a new concept.
             | 
             | Whoops. Yeah, worded the original post badly. My intent was
             | that it is relatively new that this is a policy under
             | active (and heated) discussion.
             | 
             | > In fact, it used to be commonplace to deport your own
             | citizens, not just foreigners. The modern nation of
             | Australia exists as a result of such a policy!
             | 
             | Which just proves my last point... it's in almost all
             | scenarios really really bad for the destination country.
             | The Australian Indigenous people have been driven to the
             | point of extinction by that policy.
             | 
             | > Incidentally, if Germany had deported a foreigner who led
             | an attempted coup d'etat, perhaps it would have saved tens
             | of millions of lives.
             | 
             | German here. I don't think it would have changed much.
             | Sure, Hitler was undoubtedly charismatic... but even the
             | most charismatic demagogue needs a desperate populace. If
             | it weren't Hitler, someone else would have risen - _a lot_
             | of powerful interests were aiming for the final collapse of
             | the Weimar Republic, which is part of the reason why Hitler
             | got off with a slap on the wrist, and part of the reason
             | why he did get elected legitimately a decade later.
        
             | killingtime74 wrote:
             | Nit pick, Australia was founded on transportation, not
             | deportation. Australia was not a foreign country until many
             | years after.
        
           | ilamont wrote:
           | > Many countries have no issue with that, serving time is
           | considered enough of a punishment. The idea of (especially
           | mandatory) deporting of criminals is relatively new
           | 
           | Paul McCartney would like to have a word with you.
           | 
           | Not just Japan. For decades, SE Asian countries such as
           | Thailand, Malaysia and Indonesia have deported foreign
           | convicts upon release and applied re-entry bans. It's not a
           | new thing driven by right-wing politicians.
        
       | my_throwaway23 wrote:
       | Over 10 years of providing details and documents, but still
       | waiting for my 0.75 BTC.
        
         | stavros wrote:
         | Didn't you get it back? They sent me a portion of mine last
         | year.
        
       | edfletcher_t137 wrote:
       | Working with Andrew Lee on vp.net, who maliciously imploded
       | Freenode some years ago. Birds of a feather...
        
         | rpcope1 wrote:
         | Oh he's the one that caused the Libera split? How am I not
         | surprised.
        
       | kbenson wrote:
       | Small nitpick with the title, because I still find it humorous
       | all these years later, but it's not "Mt. Gox" like Mount Gox,
       | it's MTGOX, which stands for Magic The Gathering Online Exchange,
       | as it started out as a trading platform for that, and adopted
       | bitcoin early as a way to facilitate trades of the cards without
       | cash.
        
         | anonymous908213 wrote:
         | It was literally branded Mt. Gox. In the logo and everything.
         | Also, he had already shuttered the MTG project and simply re-
         | used the dormant mtgox domain.
        
           | gruez wrote:
           | The Wikipedia page agrees with you as well:
           | https://en.wikipedia.org/wiki/Mt._Gox
        
             | anonnon wrote:
             | There's some discussion about potential Citogenesis here: h
             | ttps://en.wikipedia.org/wiki/Talk:Mt._Gox#Possible_citogene
             | ...
        
               | pessimizer wrote:
               | > More importantly, McCaleb replied to my email. In
               | response to my question "Did anyone ever actually trade
               | card for card or money for card on Mtgox.com?", he
               | replied "yeah they did". I've asked him some followup
               | questions on dates & volumes & closure reason, but I
               | guess that settles that... Does anyone recall the OTRS
               | procedure for storing emails from primary sources? It's
               | been years since I've last done it. --Gwern (contribs)
               | 20:36 17 February 2014 (GMT)
        
       | rpcope1 wrote:
       | I like how this paints Karpeles, the Ripple guy and Roger Ver as
       | seemingly upstanding individuals who didn't do anything wrong.
        
       | mrkramer wrote:
       | The guy was running hosting company which sold web domain to the
       | Silk Road guy and then the Russian dude who run BTC-e exchange
       | hacked his exchange(which was by the way sold to him by the
       | Ripple founder). This is like some cheesy crime movie. Tell me
       | about Bitcoin's circular economy and his bad luck or to be more
       | precise incompetence. This guy basically blew away billions of
       | dollars of people's money not knowing what the hell he was
       | actually doing or who he was dealing with.
        
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       (page generated 2025-12-24 23:01 UTC)