The truth behind the Mt. Gox "still has 80,000 bitcoins" explosion: unrelated to the 2014 theft
Taiwanese blockchain media Zombit exposed a misleading report originating from a "specific media" that quoted a tweet from former Mt.Gox CEO Mark Karpeles, interpreting it to suggest that the bankrupt exchange Mt.Gox may still have nearly 80,000 bitcoins to compensate users. However, the transfer of these nearly 80,000 bitcoins actually occurred back in 2011 and does not pertain to the victims of the 2014 incident.
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Quick Recap of the Mt.Gox Incident
In 2014, the world's largest Bitcoin exchange, Mt. Gox, was hacked, resulting in the theft of 850,000 Bitcoins, valued at $460 million. The exchange was left with just over 140,000 Bitcoins (BTC) and 69 billion Japanese yen. By the end of the same year, they claimed to have recovered 200,000 Bitcoins. During a creditors' meeting in 2021, it was decided to compensate creditors with 141,000 Bitcoins.
The legal proceedings in Japan have been ongoing for many years, and it is expected that the two major creditors will receive partial compensation by September 30, 2023.
Do Not Confuse "80,000 Bitcoins" with the 2014 Hacking Incident
According to the media outlet Zombit, former Mt.Gox CEO Mark Karpeles stated on August 1st:
"I hereby certify that the 79,956.55 Bitcoins sent to the 1Feex address on March 1, 2011, were transferred from Mt.Gox's original bitcoind wallet without proper authorization and are considered stolen assets belonging to Mt.Gox, intended for the benefit of Mt.Gox creditors." This incident dates back to 2011, before Mt. Gox was hacked and lost 850,000 Bitcoins.
I hereby certify that the 79956.55 Bitcoins sent to the 1Feex address on March 1st 2011 were transferred without proper authorization from MtGox's original bitcoind wallet, and are considered stolen property belonging to the MtGox estate for the profit of the MtGox creditors.
— Mark Karpelès (@MagicalTux) August 1, 2023
In 2011, nearly 80,000 Bitcoins were improperly transferred and stolen. However, the wallet associated with this address, 1Feex, was claimed by Bitcoin Cash supporter Craig Wright as his own, leading to a series of lengthy legal battles.
Mark Karpeles' statement aims to clarify that this fund has no connection to Craig Wright and should rightfully belong to Mt.Gox creditors as part of the stolen funds from the past.
If the funds from 2011 can be successfully recovered from the hackers, whether it can be used as part of the compensation for the 2014 hacking incident bankruptcy settlement will be determined by the court in the future.