How the Bitcoins Were Stolen from Mt. Gox [video]
&gt; MtGox was essentially insolvent for most of its existence.<p>This is the biggest worry. How could they have not known about their books? This shows the fundamental flaw in cryptocurrencies. There will always be highly motivated and very technical people (Russia and China looking at you) willing to spend hours, days, months attacking or searching for exploits and vulnerabilities to extract coins. This differs from traditional banks which requires a physical bank robbery.<p>Ultimately the incentives for illegal activities, theft, and fraud is just to high without oversight and a central trusted authority.