Thursday, March 27, 2014

Mt. Gox Pyramids were not a closed system

Last week Mt. Gox all but admitted the 200K in pyramid splits were theirs, and that they were moving bitcoin that was reported to the Japanese authorities over their civil rehabilitation.  The implication was it was all money Mt. Gox already had.  Not so fast.

While I have only identified pocket change (not even enough to buy Dorian lunch anywhere, maybe a candy bar) there is definitely coin that did not exist in Mt. Gox's system prior to the split and merge games they just did.  Principally because it was mined until after Mt. Gox went into bankruptcy.  You don't need to presume malice, because it most likely represents standard distributions from GHash.  Maybe.