I don't understand how people could have withdrawn bitcoins, used transaction malleability to make gox think there was an error and resend the coins... to the tune of 750,000 BTC without mtgox noticing something was wrong... am I missing something? or is the loss related to something else?
Crazy Rabbit's theory is that they never had the 700k in coins to start with. Gox may have been selling non-existent coins all along as the transactions were off blockchain. Gox thought they were making money but actually due to malleability issue, they were getting continually drained of real bitcoins.
So the liability side to customers kept getting bigger and bigger and bigger.
I would say that Karpeles is a genius retard... IMHO of course.
That does not compute. You query the btc balance of every user. Check.
You then check you hot wallet balance in bitcoind. Check.
You then check your cold wallet money has not moved. You still control it. Check.
Do the simple math.
What you say is correct. I don't think MtGox was able to query btc balance of every user.
The hot wallet would've been running low. I don't know if it was topped up and how many times.
I think cold wallet is still somewhere but most likely has been shifted for "security reasons".
MtGox was unable to do the maths, it would appear.
