<p>Specifically:</p>

<ol>
<li>They blamed transaction malleability for a hack, which was clearly a lie - blaming Bitcoin for their own mistakes.</li>
<li>They stopped withdrawals but continued allowing deposits and trading. A leaked strategy document shows that this was an attempt to conceal the size of their losses from the public, ie they didnt' come clean when they should have .  <a href="http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft#scribd" rel="nofollow">http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft#scribd</a></li>
<li>Their communication with their customers leading up to the hack was generally awful.</li>
</ol>

CC BY-SA 3.0
2015-01-27T19:10:06.783Z
I'm pretty sure that document is fake. [1](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfo0wy1) [2](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfnxrac) [3](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfo8907)
Nick ODell
CC BY-SA 3.0
2015-01-27T22:59:04.587Z
Is there any evidence that the exchange was even hacked?
Zamicol
CC BY-SA 3.0
2015-01-27T23:27:58.997Z
Point 1 is not an answer.  It only suggests their CEO has poor character.  Point 2 is after the fact.  Poor customer service is hardly a satisfactory answer either.
Nick
CC BY-SA 3.0
2015-01-27T14:09:49.973Z
2015-01-27T14:09:49.973Z
Chinthamani
<p>The above answer is great, but I would also add:</p>

<ul>
<li>They used their own patched php code which was naive at best, pretty terrible at worst</li>
<li>Their security was so bad that hackers have managed to get the account database more than once</li>
<li>They had NO SOURCE CONTROL</li>
</ul>

<p>Most of this is in this excellent wired article: <a href="http://www.wired.com/2014/03/bitcoin-exchange" rel="nofollow">http://www.wired.com/2014/03/bitcoin-exchange</a></p>

<p>Basically, this is a website that would have been built by amateurs and had no business doing anything security related.</p>

CC BY-SA 3.0
2015-01-28T15:36:04.320Z
2015-01-28T15:36:04.320Z
Jimmy Song
<p>Everyone likes to trash Mt. Gox.  There is a ton of hearsay out there.  Can someone produce real evidence of their poor business practice?  I was hoping to find their old website FAQ for example.  What about their management and policies was so different from any of the other exchanges?  There are tons of customer complaints out there but do we know the underlying causes of those complaints and is there documentation to back those up?</p>

<p>Nick</p>

<exchanges><mtgox>
Precisely what did Mt. Gox do wrong?
Nick
# Precisely what did Mt. Gox do wrong?

(Asked by: username_0 on 2015-01-26)

Everyone likes to trash Mt. Gox. There is a ton of hearsay out there. Can someone produce real evidence of their poor business practice? I was hoping to find their old website FAQ for example. What about their management and policies was so different from any of the other exchanges? There are tons of customer complaints out there but do we know the underlying causes of those complaints and is there documentation to back those up?

username_0

**Tags:** exchanges, mtgox


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## 2 answers

### Answer by username_1 on 2015-01-27. Score: 4

Specifically:

1. They blamed transaction malleability for a hack, which was clearly a lie - blaming Bitcoin for their own mistakes.
2. They stopped withdrawals but continued allowing deposits and trading. A leaked strategy document shows that this was an attempt to conceal the size of their losses from the public, ie they didnt' come clean when they should have . <http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft#scribd>
3. Their communication with their customers leading up to the hack was generally awful.

> **Comments:**
> **username_2**: I'm pretty sure that document is fake. [1](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfo0wy1) [2](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfnxrac) [3](http://www.reddit.com/r/BitcoinMarkets/comments/1yuox1/copy_of_the_alleged/cfo8907)  
> **username_3**: Is there any evidence that the exchange was even hacked?  
> **username_0**: Point 1 is not an answer.  It only suggests their CEO has poor character.  Point 2 is after the fact.  Poor customer service is hardly a satisfactory answer either.  

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### Answer by username_4 on 2015-01-28. Score: 2

The above answer is great, but I would also add:

* They used their own patched php code which was naive at best, pretty terrible at worst
* Their security was so bad that hackers have managed to get the account database more than once
* They had NO SOURCE CONTROL

Most of this is in this excellent wired article: <http://www.wired.com/2014/03/bitcoin-exchange>

Basically, this is a website that would have been built by amateurs and had no business doing anything security related.


---

