The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster by Robert McMillan, Wired Magazine
Wired magazine points out in its new article that MtGox suffered from poor management, neglect, and inexperience. MtGox filed or bancruptcy after losing hundreds of millions of dollars of its customers money. Company insiders report that Karpeles was the reason. MtGox was run by computer geeks with little business management experience. Hackers successfully took money several times, perhaps continuously, since June of 2011. When MtGox was offline, Karpeles reportedly spent much time on tasks (such as building a cafe) rather than repairing the MtGox.com website. Karpeles is said to have gained $50 million for himself, but lost it.
This is an awesome article about how I lost thousands of dollars due to Mark Karpeles’ major weaknesses. McMillan and Wired Magazine did a great job of getting this valuable inside information on what caused the downfall of the largest Bitcoin exchange. Karpeles must take full responsibility for his failures, and, at the same time, we must understand that much of the value of Bitcoin came from his brave work to provide such an aggressive, robust international exchange. We can only hope and follow-up to ensure that the money is tracked down and recovered as much as possible.
One brights side, and one reason why Bitcoin owners like my self have been extraordinarily patient with Karpeles is because much of the money in MtGox was windfall money. Bitcoin is so amazing, that, even if less than 1% is recovered, it can repay us more than we lost if everything is handled correctly by Karpeles and the government of Japan.
Corey Chambers, The Bitcoin Blogs