mtgox
Latest
Mt. Gox chief returns as an exec at a VPN giant
Former Mt. Gox CEO Mark Karpeles may still be on trial for embezzlement in Japan, but that isn't stopping him from playing an influential role in the cryptocurrency world. As part of an interview with Fortune, the one-time bitcoin exchange leader has confirmed that he's now the CTO for London Trust Media, a company best known for its popular VPN service Private Internet Access. It's also an investor in cryptocurrency services like BlockExplorer, Purse.io and Zcash, but Karpeles insists he's not involved in that side of the business. London Trust Media co-founder Andrew Lee said he was happy to "give a second chance" to Karpeles in his "critical hour."
Coincheck loses $400 million in massive cryptocurrency heist
Tokyo-based cryptocurrency exchange Coincheck just made history, and not in a good way. It has lost around $534 million worth of NEM tokens, one of the lesser-known cryptocurrencies, after its network was hacked on January 25th, 12:57pm EST. The attackers remained undetected for eight hours, giving them enough time to steal 523 million tokens kept in a "hot wallet," a type of storage that's connected to the internet for easy spending. While the exact value of the stolen coins are unclear due to the ever-changing nature of cryptocurrency -- it's $400 million at the very least -- Coincheck might have already lost more than what Mt. Gox did a few years ago.
Arrested Bitcoin exchange leader might be linked to Mt. Gox theft
Greek authorities arrested a leading member of the BTC-e Bitcoin exchange on suspicion of money laundering, though the ultimate charges haven't been disclosed. That's because the person in question -- a Russian citizen named Alexander Vinnik -- was detained at the request of US authorities, which suspect he laundered as much as $4 billion through the platform.
Mt. Gox chief claims innocence ahead of Bitcoin trial
At one point, the Mt. Gox exchange facilitated 80 percent of the world's Bitcoin transactions. That was, at least, until 2014 when someone absconded with hundreds of millions of dollars worth of the digital currency -- as well as an additional $28 million in cash -- from the exchange's accounts. Authorities in Japan have since fingered the site's chief executive, Mark Karpeles, as the caper's culprit. However, as his trial got underway on Thursday, the 32-year old French national declared his innocence, per Reuters.
Japan considers treating Bitcoin like real money
Japan's financial services regulator is considering recognizing Bitcoin and other virtual currencies as equal to their real-world counterparts. The news comes via Nikkei's Asian Review, which claims that authorities want to improve customer protection to avoid another Mt.Gox-style calamity. When the Japan-based Bitcoin exchange went offline, a number of people lost a substantial sums of money that it was holding. They were unable to seek compensation, however, since Bitcoins weren't considered real property, and a subsequent court case affirmed that stance.
Former Mt. Gox CEO officially charged with embezzlement
Mt. Gox is a sordid story seemingly refuses to die. Last we heard, the bitcoin exchange's CEO Mark Karpeles had been arrested by Tokyo police, and some six weeks later he's been charged with pilfering 321 million yen (around $2.7 million) of former clients' money according to Reuters. Apparently he spent it on a custom-built bed and buying the rights for computer software development. Why the gap between arrest and now? Well, Japan grants that sort of holding even without formal charges. As the AFP Newswire tells it, Karpeles is still being held by Japanese authorities, but he can petition the court for "release pending trial." We'll have to wait and see if he exercises that right. [Image credit: Bloomberg via Getty Images]
Recommended Reading: Should we be concerned robots will take our jobs?
Recommended Reading highlights the best long-form writing on technology and more in print and on the web. Some weeks, you'll also find short reviews of books that we think are worth your time. We hope you enjoy the read. Robots Will Steal Our Jobs, But They'll Give Us New Ones by Cade Metz Wired With all the advances in automation and robotic technology, should we be worried that robots will replace us? Well, while they might take some of our jobs, they'll also give us new ones. This piece from Wired offers a look at the future as we learn to live with AI, presenting a strong case that it may not be as dire as the critics predict.
Former Mt. Gox CEO arrested in Japan over missing bitcoin
It's been months since Tokyo police revealed their belief that the Mt. Gox bitcoin heist was an inside job, and tonight they arrested its former CEO, Mark Karpeles. Some 650,000 bitcoin still remain unaccounted for since the exchange shut down in 2014, which Karpeles blamed on a computer flaw. According to the Wall Street Journal and The Japan News, police in Japan believe Karpeles manipulated the balances of the accounts using it to counter orders from customers and that some of the missing bitcoin may have never existed at all.
Tokyo police figure Mt. Gox bitcoin heist was an inside job
It's been about ten months since the Mt. Gox bitcoin exchange turned out the lights, blaming hackers or a bug in the blockchain as reasons why 850,000 bitcoin it held had suddenly disappeared. Today the Japanese paper Yomiuri Shinbun (English) reports that Tokyo Police investigating the events have found evidence that only about one percent of the lost bitcoins disappeared due to hacking from outsiders. Citing sources inside the department, the report suggests that the rest of the 650,000 bitcoins still unaccounted for (200k popped up unexpectedly) were lost by "unauthorized operation" of the system. The evidence shows unauthorized transactions by someone that did not correspond to any customer accounts. There's no indication of who exactly was responsible, but former CEO Mark Karpeles told PC World via email that he will "continue investigating" to find out what really happened. Maybe North Korea could help? [Image credit: Photothek via Getty Images]
Mt. Gox revival threatens customer's remaining Bitcoins, says CEO
First, one of the world's largest Bitcoin exchanges went dark, then it filed for bankruptcy, suffered further hacking attacks and even faced a lawsuit. Now Mark Karpelès, Mt. Gox's CEO, tells the Wall Street Journal that he's liquidating what's left of the company assets to make ends meet. "As the company head, my mission was to protect customers and employees," he said in the interview, his first public appearance since Mt. Gox collapsed. "I'm deeply sorry. I'm frustrated with myself." A court-appointed trustee now holds all of the exchange's remaining funds and assets, and is preparing to auction off domain names owned by the companies to help repay creditors and keep Tibanne -- Karpelès' other business -- alive. This includes selling bitcoins.com and akb.com. Karpelès didn't say if mtgox.com itself would be up for sale, but he is worried about its future.
Mt. Gox Bitcoin exchange gets approval for US bankruptcy protection
The Mt. Gox Bitcoin exchange may still be reeling from the botnet discovery that ruined its business, but it just got a big reprieve. A US court has approved Mt. Gox's Chapter 15 bankruptcy protection, preventing creditors who sued the company from seizing any American assets (including servers) or pressing for evidence. The exchange can also chase down any funds it needs to repay its debts and, if necessary, file lawsuits of its own.
US targeting Bitcoin exchanges in hunt for drug money
While Bitcoin tries to go mainstream, many supporters still celebrate its "anarchist spirit" -- but certainly not the FBI. According to the WSJ, they're probing the now-collapsed Mt. Gox exchange and several others in connection to Silk road, the notorious former drug marketplace. Authorities recently arrested its founder, Ross Albrecht, and charged him with money laundering, drug trafficking and other offenses. They've reportedly now issued subpoenas to exchanges including Mt. Gox, looking to see if they gave Silk Road crooks hard currency in exchange for Bitcoins. The investigation has just started, but such businesses now seem to be in the fed's cross-hairs -- despite the underworld's love for cryptocurrency, they still need cold cash.
Mt. Gox settles class-action lawsuit by turning customer creditors into owners
More good news for those who entrusted Bitcoin exchange Mt. Gox with their cryptocurrency. After filing for bankruptcy earlier this year, Mt. Gox found some 200,000 Bitcoins last month, and today it has tentatively settled its class-action lawsuit in the US. In exchange for dropping the case, customers will become part owners in the new Mt. Gox -- a group of investors is set to purchase and revive the failed exchange -- to the tune of 16.5 percent. Additionally, class members get to split up those rediscovered Bitcoins and another $20 million currently being held by Mt. Gox's bankruptcy administrator. The settlement, naturally, is contingent upon both the US court agreeing to the terms and a Japanese bankruptcy court approving the deal for Mt. Gox's sale. And, bear in mind that US beneficiaries of the settlement don't get priority over anyone else, nor do they get the full ownership stake in the new Mt. Gox. The settlement terms would apply to creditors throughout the world, and the benefits of the deal will be shared equally amongst them. Mt. Gox is dead. Long live Mt. Gox. [Image Credit: AP Photo/Shizuo Kambayashi]
Mt. Gox found 200,000 Bitcoin ($116 million) in an old wallet, should check its pockets
In a bit of news that's familiar to anyone who ever put on an old jacket and found $20 in the pocket, embattled Bitcoin exchange Mt. Gox has made a fortuitous discovery. The company announced (PDF) in Japan that it found 200,000 Bitcoin (worth nearly $116 million at the moment) in a wallet from 2011 that it no longer used. That's less than a quarter of the 850,000 Bitcoins CEO Mark Karpeles reported were missing, but at the moment, at least it's something. According to its statement, the coins were moved to online wallets on the 7th, and then to offline wallets on the 14th and 15th. The mystery of what happened to Mt. Gox's funds is still far from solved, but between this news and reports of updated balances for account holders, it seems possible that there's something to be recovered from the shuttered exchange. Next up, removing all of the cushions from the sofa and pulling it away from the wall.
Mt. Gox gets its login page back, but only lets users check their Bitcoin balance
Wondering where your Bitcoins are? Looks like Mt. Gox is giving you an official way to check. The fallen Bitcoin exchange has updated its homepage with a sparse login screen, inviting users to sign in and check their wallet's balance -- with a caveat. "This balance confirmation service is provided on this site only for the convenience of all users," the site warns. "Confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure... ...and should also not be considered an acknowledgement by MtGox Co., Ltd. of the amount of any rehabilitation claims of users." That legalese is referring to Japan's Civil Rehabilitation Law and Mt. Gox's bankruptcy proceedings, which are counting the company's assets to suss out a liquidation value. Mt. Gox users with Bitcoin stuck in limbo may eventually get a percentage of their wallet's worth based on the official totals. It's not a particularly heartening disclaimer, but at least it gives users a way to verify their online wallets without putting their accounts at risk.
Court freezes Mt. Gox assets in US, lawyers dig into the case of the missing Bitcoins
A US District Court for the Northern District of Illinois has just granted a temporary restraining order to freeze all US assets of Mt. Gox, Tibanne KK and Mt. Gox CEO Mark Karpeles as part of an effort to find out exactly what caused the Japan-based Bitcoin exchange to fall. This follows the news that Mt. Gox filed for bankruptcy protection in both Japan and the US, a month or so after the exchange went dark and claims it lost nearly 850,000 Bitcoins (roughly $541 million) due to "weaknesses in the system." The restraining order was filed by Edelson PC, the firm Gregory Greene hired to press class action charges against Mt. Gox for fraud. As Mt. Gox is based in Japan, it's unclear what assets there are to actually seize in the US, but the restraining order at least lets Greene's lawyers start the formal process of getting documents and information from the Bitcoin exchange. Perhaps we'll then finally uncover the secret behind its downfall; it'll at least be one Bitcoin mystery solved, anyway.
Mt. Gox exchange faces US lawsuit over Bitcoin losses
Remember how the discovery of a botnet took much of the value out of the Mt. Gox Bitcoin exchange, leading it to declare bankruptcy? Yeah, investors aren't happy about that -- and they're now demanding compensation. One of them, Gregory Greene, has filed a lawsuit accusing the exchange of fraud for not doing enough to protect traders from theft. He's pressing for class action status to cover all Bitcoin owners who used Mt. Gox, and he wants the exchange to pay both restitution and damages. It's not yet clear how the company will respond, but it wouldn't be surprising if there are other lawsuits to come. When customers may have lost the equivalent of $480 million in virtual currency, there's a lot more than just hurt feelings at stake.
Daily Roundup: Mt. Gox goes offline, OS X update, Disney's new app and more!
You might say the day is never really done in consumer technology news. Your workday, however, hopefully draws to a close at some point. This is the Daily Roundup on Engadget, a quick peek back at the top headlines for the past 24 hours -- all handpicked by the editors here at the site. Click on through the break, and enjoy.
Bitcoin exchange Mt. Gox goes dark (update: site issues cryptic statement, could still relaunch as Gox)
Less than a year ago when we took a long look at Bitcoin, exchange Mt. Gox reportedly handled some 80 percent of global traffic in the digital currency. Tonight however, the exchange's website is offline, all tweets have been deleted from its account, and customers are unsure what will happen to fiat currency (cash) or Bitcoin that it holds. There were signs of trouble before this however, as Mt. Gox hasn't been the leading Bitcoin exchange since late last year, and it halted customer withdrawals on February 7th. The Bitcoin Foundation, which advocates for the digital currency, announced that Mt. Gox CEO Mark Karpeles resigned on Sunday. A price index from digital currency tracker CoinDesk currently shows the value of Bitcoin has dropped $100 in 12 hours to $463, while Coinbase lists a buy price of $448. Prices for Bitcoin on Mt. Gox had fallen as low as $135, as the exchange issued a statement on the 17th that it had halted withdrawals while dealing with security issues. Rumors have flown about what's going on, and Reddit poster relliMmoT, who posted the screenshot above, reports trading halted at 8:59PM ET before the site went offline. Several other companies involved in digital currency including Coinbase, Blockchain.info, Circle, Kraken, Bitstamp.net and BTC China have issued a joint statement in response, decrying Mt. Gox's "tragic violation" of user trust. They're also promising to reassure customers and the public about their security, and to "lead the way" in consumer protection measures. Curiously, the statement originally referred to the exchange as insolvent (and still does on Circle), but that reference has been removed. According to Re/code a spokesman for the group stated that the troubled exchange has informed others that it will file for bankruptcy, but that can't be confirmed at this time. Update: Several Twitter users have noticed a change in Mt. Gox's previously DOA website. Instead of simply failing to load, as of 4AM ET or so, it has switched to a blank page with HTML indicating "put announce for mtgox acq here." Is someone about to step in and clean up the mess? If and when we hear something definitive, we will let you know. Update 2 (9AM ET): Coindesk says domain investor Andy Booth has confirmed the sale of the Gox.com domain to Mt. Gox CEO Mark Karpeles. This is particularly notable, because it lends credibility to an alleged pitch document originally posted by "two bit idiot" with an appeal to potential investors for relaunching Mt. Gox. According to the document (here and embedded after the break), the exchange has significantly more liabilities than assets while suffering from "massive robbery and poor Bitcoin accounting." Other than planning for a replacement CEO, it closes by pushing for a transition to "Gox," and offering limited withdrawals as it generates revenue to pay back stakeholders. Update 3 (11AM ET): Mt. Gox has released an official statement saying that it has closed all transactions as a precaution to protect the site and its users. Unfortunately, it's not entirely clear what the team is protecting users from. Perhaps its the volatility introduced by the domain changing hands or an impeding bankruptcy proceeding. Or, maybe, it's somehow related to the more advanced version of the Pony botnet that's been making the rounds -- but that seems unlikely. The entire statement is below. Dear MtGox Customers, In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly. Best regards, MtGox Team
Mt.Gox Bitcoin exchange freezes US dollar withdrawals for two weeks
It's easy to see that the Bitcoin market is under stress when there's rising overall activity and tighter oversight. However, it's now so hectic that the Mt. Gox exchange has trouble fulfilling even basic transactions -- and the institution is freezing US dollar withdrawals for two weeks to keep things in check. Mt. Gox's team will use the downtime to upgrade its trading system and (hopefully) address the heavy workload. Deposits and transfers in American currency should still be good to go. Let's just hope that Mt. Gox manages smoother transitions in the future -- after all, not everyone can afford to leave their money in limbo during a tech refresh.
