A Guilty Verdict, Impatient Creditors, & A Resurrecting Movement: Mt. Gox Saga Continues

Zero Hedge | 4/3/2019 | Staff
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It is one of the biggest cryptocurrency hacks of all time and still remains the biggest Bitcoin (BTC) hack the world has ever seen. The 2011, a security breach on Mt. Gox’s platform, the now-defunct Japanese cryptocurrency exchange, saw 850,000 Bitcoin stolen. Although 200,000 BTC have since been recovered, the subsequent closure of the exchange in 2014 left 24,000 creditors in its wake.

Eight years later, the story continues with its villainized ex-CEO, Mark Karpeles, at the forefront and creditors still in the dark as to what a payout agreement would look like.

February - Cointelegraph - Photo - Reddit - Business

In early February 2019, Cointelegraph reported on an alleged photo, posted on Reddit, that showed a former business partner of Mt. Gox, CoinLab, filing a 1.7 trillion Japanese yen claim against the late exchange. This is an increase on its original claim of $75 million that it sued Mt. Gox for in 2013. The original lawsuit was filed for a breach of contract, with CoinLab claiming that it was supposed to take over the American customers of Mt. Gox, according to a contract between the two parties. But it never happened. Some crypto community members are of the opinion that this inflated claim will delay creditor payments even further.

Industry commentators also believe that the trustee responsible for managing the remaining Mt. Gox assets, Tokyo lawyer Nobuaki Kobayashi, might be partially responsible for the Bitcoin crashat the beginning of 2018, due to the thousands of Bitcoin and Bitcoin Cash (BCH) that were “dumped” into the market. This totalled around $700 million by the end of June 2018. Although other analysts believe that the launch of the CME Bitcoin futures also had a role to play in the market crash. The San Francisco Federal Reserve stated at the time:

Run-up - Fall - Price - Introduction

"The rapid run-up and subsequent fall in the price after the introduction of...
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