On: 500k Bitcoins traded in 1h, Mt.Gox market hacked +...

[lubos]

mtgox acts like a central authority. basically all these trades were happening in mysql database within the exchange between internal accounts, there were no actual bitcoin transactions.

[wmf → lubos]

But if you bought a bunch of BTC at $0.01 and then withdrew them, Mt.Gox should have irreversibly sent that over the real Bitcoin network.

[lubos → wmf]

there is daily limit though. you can only withdraw up to 80 BTC a day.

[jyu → lubos]

What source are you getting this 80 BTC / day withdrawal limit from?

[Astrohacker → jyu]

Due to some US law, they restrict withdrawals to $1000/day. That includes bitcoins. Presumably, they do that to make sure they are well within the law.

[lwat → Astrohacker]

Before they closed it, the BTC traded for $0.01 each, which means they could withdraw 100,000 BTC under the $1000 rule.

[Retric → lwat]

But not the separate but related BTC / day rule.

[kristofferR → wmf]

Yeah, but my guess is that not many people managed to withdraw them because of the stability problems the site had/have. Mt.Gox will probably have some losses, but not that high I think.

[mehwoot → kristofferR]

This exactly. People _could_ have withdrawn a bunch, but mostly that didn't happen.

[weavejester → wmf]

It sounds as if Mt. Gox managed to shut things down before anyone could do that.

[anigbrowl → lubos]

mtgox acts like a central authority

Goodbye frying pan, hello fire.