Trial of the founder of MtGox began

Mark Carpels is accused of theft and embezzlement of 850,000 BTC investors
10 July 2017   1663

The former head of the Bitcoin Exchange MtGox, Mark Carpeles, will appear this week before a court in Japan on charges of stealing and squandering hundreds of millions of dollars of investors. This is reported by AFP.

Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks. 

The 32-year-old French entrepreneur was the founder of the MtGox exchange, through which, between 2011 and 2013, significant amounts of traders were held. In many respects thanks to the activity of MtGox, the price of bitcoin in its time overcame for the first time the mark of $ 1000, however, with the collapse of the exchange, it quickly went down.

bitcoin charts
Bitcoin charts

MtGox was based in Tokyo and at a certain stage was the largest trading platform in the bitcoin ecosystem. The degree of dominance of MtGox is fully explained by simple figures: about 70% of all transactions with the crypto currency passed through the exchange.

In early 2014, MtGox, was charged in a dirty game and stopped working. Mark Carpiles had later claimed that the platform had undergone a hacker attack, but a study by Japanese company WizSec, published in April 2015, showed that MtGox started withdrawing funds as early as 2011, and by 2013 there were practically no funds on the stock exchange accounts.

Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.

The losses of MtGox investors are estimated at 850,000 BTC. At that time, this amount was about $ 480 million, at today's market rate it is about more than $ 2 billion.

In August 2015, Karpeles was arrested, and after a while he was formally charged with theft and embezzlement of investors' funds. As far known, the Frenchman led a luxurious lifestyle, renting a penthouse in Tokyo for $ 11,000 a month.

However, less than a year later - in July 2016 - Karpeles was free, paying a bail of 10 million yen. Under the terms of the deal with the authorities, Karpeles is forbidden to leave Japan, he also refused any communication with the press.

Lawyer of Karpeles, Kiichi meanwhile said that Karpeles intends to insist on his innocence.

In June, representatives of the New York blocking start-up Chainalysis said that they know the whereabouts of 650,000 BTC, disappeared from the accounts of MtGox.

HashFlare Users to Face Withdrawal Issues

Looks like Bitcoin cloud mining is not super profitable
18 July 2018   130

Users of HashFlare mining pool can't withdraw their funds, while their contracts are threatened with a temporary ban. Even lower restrictions on withdrawal of funds in the amount of 0.03 BTC caused problems for users, but the service raised the threshold to 0.05 BTC and 0.1 ETH . This is reported by Cryptovest.

In addition, financial pyramids are often promoted under the guise of mining contracts for cloud mining. For last few months, there was a big jump in mining difficulty of many cryptocurrencies, so, old contacts had become unprofitable.

As reported, the reason for the locked funds dates back further - at the beginning of June, so much hashing power was flowing into the Bitcoin network that contracts saw all the mined coins go toward their maintenance fee.

Currently, more and more users who have purchased contracts at earlier stages are facing the fact that they can not withdraw their funds. One of them managed to return the money spent through the bank card operator after filing a corresponding complaint.

To anybody that purchased a Hashflare cloud mining contract with a credit card, it might be possible to get a refund with that credit card as one of my followers tipped me. He bought his contracts at the end of 2017.
 

bccponzi at Twitter

The hash rate of bitcoin increased from 13 EHash / s at the beginning of the year to more than 40 EHash / s in recent months. The difficulty of mining in the present conditions depends on the circumstances of the specific miner. The cost of bitcoin mining for some of them is $ 4,400, while others spend about $ 5,800. However, in 2018, cloudy mining is called an even more dubious occupation than before, especially when it comes to mining bitcoin.