I haven't seen a good explanation on why Mt Gox was holding so many bitcoins or fiat currency based accounts in the first place. The whole idea for bitcoins is that you can securely hold them in your own wallet without any need for a "bank". Anyone who trusts another company with their bitcoins or allows a large IOU account to grow is subject to losses.
I thought it was just an exchange that made money on each transaction - so wouldn't need to hold much at all. Why would they be holding $409M ?
I thought it was just an exchange that made money on each transaction - so wouldn't need to hold much at all. Why would they be holding $409M ?