Mt. Gox rediscovers 200,000 Bitcoin

Mt. Gox rediscovers 200,000 Bitcoin

Summary: Some cryptocurrency believed to have been stolen by hackers has been discovered -- in an old wallet thought to be empty.

TOPICS: Tech Industry

Bitcoin trading post Mt. Gox has discovered 200,000 Bitcoin once missing in action -- in an old wallet no longer in use.

In an announcement on its website (.PDF), the once-dominant Bitcoin exchange said this discovery lowers the amount of missing Bitcoin form 850,000 to 650,000. Within the release, Mt. Gox CEO Mark Karpeles said:

"Mt. Gox had certain old format wallets which were used in the past and which, Mt. Gox thought, no longer held any Bitcoins.

These wallets were rescanded and their balance researched. On March 7, Mt. Gox confirmed that an old format wallet which was used prior to June 2011 held a balance of approximately 200,000 BTC."

Bitcoin held by Mt. Gox now amounts to roughly 202,000 BTC, all of which have been removed to offline storage and reported to attorneys due to the current bankruptcy case and investigation.

Read this

The Mt. Gox bitcoin debacle: Bankruptcy filed, customer bitcoin lost

The Mt. Gox bitcoin debacle: Bankruptcy filed, customer bitcoin lost

UPDATE: Mt. Gox has closed the bitcoin exchange and filed for bankruptcy in Japan.

Originally, it was believed that 750,000 BTC belonging to customers and 100,000 BTC belonging to the firm were stolen -- worth roughly $495 million in today's trading. However, taking into account the recovered digital currency, this figure has been revised to 650,000 BTC.

Tokyo-based Mt. Gox was once the most popular and largest trading post for the exchange of the digital currency. However, last month the firm abruptly closed its doors without warning, later revealing that cyberattacks taking place over a number of years had systematically wiped out both customer and Mt. Gox-owned Bitcoin -- causing the firm to file for bankruptcy.

The Bitcoin community, cut off from their investments and unsure of whether their Bitcoin was recoverable, flew into a rage. A number of hackers defaced the chief executive's blog and Reddit account, and others released data that allegedly showed that "stolen" Bitcoin was actually due to company fraud.

In response, Mt. Gox said the stolen Bitcoin was lifted due to "system flaws," and apologized. Although customers are still unable to withdraw Bitcoin, they are now able to log in to their accounts and check their balances.

Mt. Gox is not the only Bitcoin exchange to be hit by cyberattacks. Following the Mt. Gox debacle, Flexcoin was forced to close its doors after losing 896 Bitcoin, worth approximately $606,000. Flexcoin said it neither had the resources or cash to carry on its services.

Another Bitcoin exchange, Poloniex, also admitted to losing over 10 percent of customer Bitcoin stored online.

Topic: Tech Industry

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  • Amateur hour

    Holy cow... really the only words that come to mind are "amateur hour." 200,000 bitcoin was recently worth about $200,000,000, and these guys simply "misplaced" it?!
    • Yes BUT ...

      "They take full responsibility for their actions."

      "King's X !" We said we take full responsibility for our actions. So we should be allowed to just get a stern talking to ... and maybe a "time out".
      • Somewhere in Japan...

        ...I think there's a bankruptcy trustee who's not at all impressed by the way Mt. Gox was operating.

        If you wanted to know why Big Bad Government insists on regulating financial institutions, this is it.
        John L. Ries
  • How's that limited issuance working out for ya?

    But if I lose my wallet and the Bitcoins in it forever, it makes all other Bitcoins that much more rare and that much more valuable?

    Nobody knew yet at the same time the 850,000 Bitcoins were stolen when all other exchanges crashed in sympathy to Mt. Gox. The prices of BTC in all other exchanges were supposed to go up in competition, not down in sympathy. Bitcoiners were relieved to have the "Bitcoins were stolen" excuse to explain the prices crashing from the Mt. Gox effect.

    But now we found a couple hundred thousand and prices don't look very good this morning.

    Lessons Learned:
    Bitcoins lost, price goes down.
    Bitcoins stolen, price goes down.
    Bitcoins never lost and never stolen, price goes down.
    Infinite divisibility is over rated, over valued and over priced.
    • What will happen to those BTC?

      That is alot that can be sold all at once to a single buyer. A smart investor could use those BTC and remint them into a new currency that has laws and financial service regulations and has customer service and that new currency can sit on top of BTC because it was born being worth a Bitcoin.

      An opportunity like this would be good for a serious company to buy out the wallet and avoid paying off fools in the other exchanges. This pile could be used to corner the market.
      • My prediction

        Vegas Coin

        Outside the city, those are a financial service but when you personally bring them to Vegas it can be used in casinos. And the designers of Vegas Coin will have exclusive rights to the merchant systems and the exchange. Plus, it eliminates the hoax Bitcoin vending machines called Bitcoin ATMs. Vegas Coin customers will probably have to drive to a casino, but the Vegas Coin ATM could pay real cash. That would beat Bitcoin ATM because an owner of that would run out of cash and then run out of Bitcoins repeatedly until he was broke. A Bitcoin ATM would have a line in front of it that never leaves or else it will be cleaned out by the time you find it in a time of need.

        There is so much more that Vegas can do with Bitcoin than a third world currency can do by itself. So many ideas that I wouldn't want to give away my ideas here. This is going to add up in somebody else's head faster, anyway, I'm sure.
  • In the words of Gordon Gecko...

    ...A fool and their money are lucky to have ever met in the first place.

    The whole point of btc is peer-to-peer transactions. If you let a firm like MtGox hold ur wallet then u just got what u deserved. BTC is a wild west gold rush right now. It would have been like a '49'er walking into town and saying to someone who hung a shingle out front, can u hold on to this here gold while I go back up the mountain to find some more?

    The best strategy is to have two wallets. One on a computer never attached to the web with all ur BTC. A second much smaller wallet on the computer with a connection. And you transfer coins btw wallets as needed across a secure VPN only when the web connection is off. That way the damage from attacks (and yes there will be some) is minimized.

    As always caveat emptor
    • Two computers!?

      The vast majority of the human inhabitants of planet Earth don't even have one computer. Nor do they have access to the Internet.

      And I wonder what percentage of those that do have computers and Internet access are capable of properly setting up a secure VPN ...
      Rabid Howler Monkey
      • Rabid Howler Monkey

        Use ur brain for Pete's sake.

        If you're one of the vast majority in the world that doesn't have a computer or access to the internet, then I don't think they will be using BTC.