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If the 500K Bitcoins sold are the total of the Bitcoins in all MtGox wallets, than Bitcoin is over.

Sample of one: I have for about 100 USD in Bitcoins at MtGox, if they got stolen today, I will leave the project.

Yea, I had been keeping my bitcoins in MtGox too, but I figured at the very least I wanted to have two points of failure, so I moved half of them onto my computer.

Figured worst case scenario I'd lose half in a single day. But hopefully that's not what happened!

I think the bitcoins belonged to a guy who had his wallet of 500k stolen some time around last week.

he had only 25k stolen.

You're probably thinking of the guy who claimed he lost 25k bit coins (which at that moment was "worth" 500k USD). This was a trade of 500,000 bit coins.

Ahh yes, you're correct, I got confused.

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