LMAO bitcoin to the moon. Hey new users one of the largest exchange just stole everyones money and is bankrupt wouldn't love to accept Bitcoin.

It’s been long known that Gox is incapable of fulfilling all their USD debts ever since their main bank account was seized. On this front, they have been operating as a psuedo ponzi scheme, where new money would pay off old money. There’s been a lot of debate lately whether or not Gox had the BTC on hand to pay off all their debts, and if you read between the lines, this press release confirms that they do not. Make no mistake about it: Mt Gox is likely insolvent in BTC as well.

How, you ask? The fact that they’re complaining about this one (non)issue in particular is very telling. Since their system ran off transaction IDs, they’ve been vulnerable to attacks involving transaction malleability for god knows how long. The attack is simple: Intercept their original transaction, alter the hash of it, and rebroadcast the new transaction. If the altered transaction gets accepted into a block, you have your BTC, but it’s still marked as unreceived within the Gox system. You can then complain to support that you never got your BTC. Support would search by TXID, see that their original transaction is not included in the blockchain, and then credit your account. Congratulations, you just doubled your BTC! This is similar to how a double spend is done, but magnitudes easier to pull off.