DayX: Person B finds an exploit in my LR code and manages to send himself a good deal of LR from the site.
As I have said previously we dont want to be the bitcoin police and this will hopefully not be necessary in the future since we have fixed these security issues that allowed Person B to steal from us and other users in the first place.
It seems to me that a possible interpretation of Mt. Gox's post is that the theft of this money itself occurred by an internal exploit reallocating LR within the site to his account, followed by the maximum withdrawal every following day. But I could be wrong.
If it were transferred within MtGox, he'd refer to it as USD, as LR is only one of multiple means of deposit/withdrawal and storage, and wouldn't refer to it as theft
from MtGox. Also, if it were an internal transfer, Jed would have simply reversed the database entry.
We are left having to assume that baron is in fact person B. barons account on mtgox holds less than the sum of theft by person B.
Now I'm not sure why he would be stupid enough to first steal 45 000$ and then deposit it back, but this isn't anything we can prove/disprove, it's a case mtgox has to deal with. All we know is that such transactions did occour. Also, it wasn't mentioned anywhere how much money was stolen from mtgox as far as I know. It would make more sense if Baron pulled off several libertyreserve scams and then deposited into mtgox while thinking he would be safe by using multiple IPs but getting busted by his lack of knowledge about bitcoin and how his transactions can be traced.
As I interpret Jed's statement, the theft of LR from MtGox was greater than the current value of Baron's account which is at least $45000.
I point this out because some may still think freezing $45000 was excessive. I say it's not, assuming there's adequate evidence that the stolen $45000+ LR was redeposited into MtGox.