Mt.Gox "Finds" Nearly Quarter Of Bitcoins It Had Said Was Missing

Tyler Durden's picture

The latest news out of insolvent Bitcoin exchange Mt.Gox will hardly boost confidence in the safety of the digital currency, after last night it announced that it had "found" nearly a quarter, or 199,999.99 of the bitcoin it had previously reported as missing. Mt.Gox Chief Executive Mark Karpeles said his insolvent company found the 200,000 bitcoin assumed lost in a digital wallet, or storage file, that hadn't been used since 2011. As a reminder, when Mt.Gox filed for bankruptcy at the end of February, it reported 850,000 bitcoins were lost, mostly belonging to its customers, with Karpeles stating at the time only 2,000 bitcoin were left, blaming hackers and technical issues for the loss. It turns out there may have been more than met the eye, and one can surely accuse Karpeles of a completely lack of knowing what was truly going on at his company.

As WSJ reports, following the announcement, "some users investigated the possibility that some coins were still inside Mt. Gox, once the dominant exchange for the virtual currency. Bitcoin transactions are tracked via an online ledger, leading many users to hope that at least some bitcoins could be tracked down and recovered."

Mr. Karpeles said in the announcement, released Thursday, that the exchange was continuing to investigate the scope of the loss, raising the specter that bitcoin that had been assumed to be stolen could be hiding out in other accounts or files the exchange had lost track of.


"We believed there were no bitcoins left in old wallets, but found 199,999.99 bitcoins on March 7," Mr. Karpeles said in the Thursday announcement. Mt. Gox said it reported the discovery of the bitcoin to its lawyers on March 8 and moved the discovered bitcoin to offline storage between March 14 and 15.


Mt. Gox didn't specify whether the found bitcoin were those of customers or bitcoin owned by the exchange itself.

One wonders just where said "wallet" was located: hopefully not in Mark's back pocket, whose recent actions and disclosures certainly leave the door open for a criminal embezzlement investigation. At least the hopes of naive users of the exchange have raised that some of their lost funds will be uncovered.

"It doesn't make me any more hopeful about more bitcoins being found, but I do think it increases the amount of money I'll get back," said Kolin Burges, an investor who had protested outside Mt. Gox's Tokyo offices in the weeks leading up to the exchange's collapse.


"I'm more hopeful than before that we will get at least some money back from Mt. Gox," said Tetsuyuki Ooishi, a fellow at the Japan Digital Money Association. Still, he expressed disbelief that the company hadn't realized earlier it still that amount of bitcoin. "They must have checked all the bitcoin wallets when they were filing for bankruptcy protection and 200,000 is just such a big amount."


Shigeichiro Yamasaki, a professor of information security at Kinki University in Osaka, also called the announcement "puzzling" and said the announcement was telling how Mt. Gox was "very sloppy about managing others' assets."


The company couldn't be reached for further explanation.

Alas, when it comes to recoveries for end users, we wouldn't hold our breath, considering the contractual claims that would have be satisfied first before any customers get recoveries. This is especially true if the most recent bout of bitcoin selling, which pushed the currency to its lowest level since early March accelerates. In that case even if a few more wallets are mysteriously uncovered, it would be cold comfort to users who bought at far higher prices only to ultimately get a "currency" worth substantially less.

In the meantime, Mt.Gox has updated its login screen for users who wish to check their balances. But why, we wonder, when all one has to do is ask the NSA just where all the "coins" have ended up.

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HedgeAccordingly's picture

Greenspan to Bloomberg TV: I guess Bitcoin is a bubble

EscapeKey's picture

well, if there's one thing greenspan knows a lot about, it's bubbles.

BaBaBouy's picture

It's MAGIC... Now You See Coin, Now You Don't...

RUN... From This BS Virtual Harddrive Lunacy...

fonestar's picture

Fuck you!


Big Corked Boots's picture

Nice invisible store of value you got there.

tmosley's picture

"The latest news out of insolvent Bitcoin exchange Mt.Gox will hardly boost confidence in the safety of the digital currency"


You know god damn well that the exchange is not the currency and that the currency is not the exchange.

fonestar's picture

ZH will be running MtGox stories in 2027.... "Memories of the Goxing, How it Really Happened"....

Stackers's picture

There are many articles and blogs out there covering how incompetent Mark Karpeles was. With statements like "the code was a complete mess" and "Mark had us fly in on Friday from California for an emergency code rewrite then took Saturday off" and "Mark was more interested in his bitcoin/coffee bar in the lobby of our office building than anything else"


Bitstamp also just did a 3rd party audit of it's complete wallet and bank accounts. the real players are showing they mean business.

fonestar's picture

Yeah and now they're out of business.  If it was a traditional bank, exchange, whatever maybe the taxpayer should backstop it with millions of "dollars" and countless jobs lost.

Soul Glow's picture

Supply increase, watch price fall.

bobola's picture

Hackers fiddle, diddle and parse

exchange security, proven to be farce

to keep bitcoin alive

on your precious thumbdrive

fonestar, shove it up your arse

fonestar's picture

The hackers are building a parallel, functioning economy as you wimps and pussies hide out waiting for COMEX to fail.

3x2's picture

There will never be a "parallel, functioning economy" while you, as all BC promoters, still measure your 'bitcoin success' in terms of USD.

'Hackers' are building nothing. The 'virtual coin' economy might take off when we see 'BarclayCoin' or 'HSBCoin'. BitCoin is a test bed for that, nothing more. If you get out while the going is good then you may make some 'real' money but a lot of people are going to get hit on the collapse.

The problem with Bitcoin is that anyone, with USD backing, can create their own version. At that point BC will collapse.

'Wimps and pussies' is pretty much anyone that gets in late and still believes in the scam right up to the point of collapse. You take them for all they are worth eg MtGox and leave with actual USD

BitCoin is a scam. A repeatable scam. 'fonestar' is a 'snake oil' vendor looking to get out with your USD. 




DontGive's picture

Hackers - fiddled every damn thing in existence related to computers. Sounds like you aren't a big fan of human tech progression. Go live in a cave, bitch.

TheEdmontonEye's picture

Yet another Bitcoin blunder. I'm not surprised. I have been investigating the Bitcoin fraud and we have been quite successful in finding out information of interest. Our findings are located here:

godzila's picture

@tmosley: I'm 100% with you -  this nonsensical bashing is really befuddling - there are lots of interesting discussions to be held about bitcoin but none are happening here, which is a shame.

MeMongo's picture

Ah godzilla you got it! That's why they send in people like phoney ponee, they're quite argumetative, spiteful and generally verbose. Similar to the false left right paradigm that keeps the sheeple infighting and distracted so as to keep the spotlight off of the real trouble makers ;^) I believe the Rolling Stones said it best! " what's confusing you is the nature of my game".

fauxhammer's picture

Kinki University?


They steal all of our best ideas.

fonestar's picture

Oxygen is invisible therefore it has no value you dumb shit.

fonestar's picture

Why would fonestar read anything?

fonestar's picture

Thanks for all the links fonestar will not read or visit.

DontGive's picture

Those articles are all garbage. The last one is just a compilation.

Here's what you are completely missing. The fact that as more of this happens, the better it is overall.

-The more this happens, the more Joe Dinglebarry will think twice, living in his mommas basement thinking he can code up an exchange. We suspect there will be someone getting seriously injured or suicided, which will curtail dumb asses getting into an exchange business.

-The best hackers in the world have came out to play on this landscape, which means large problems that are in this market will have many minds put to use. The banksters would wet themselves if they could evolve as quick.

-You could say the same about the fiat ponzi.


Here's a list you really want to look at:

eclectic syncretist's picture

You don't scan, you SCAM.  Fixed it for you.

fonestar's picture

The only scammers here are you turncoat, "dollar"-pumping, debit machine using, credit-creating, Visa-vouchsafing, Fed-fondling morons!

tmosley's picture

"Goldline scams money from people therefore all precious metals are a scam."

Nearly every argument you retards come up with against bitcoin can be applied to gold.  You don't understand either, so you will lose everything in the end.

Herd Redirection Committee's picture

BTC is meant to replace gold and/or cash.  It just doesn't do a very good job at it.

tmosley's picture

You are AFRAID that it will replace gold.  That fear is misplaced and is causing you to lash out in defense of the current system.

Stop that shit.

StychoKiller's picture

Sorry, but a necklace of Bitcoins ain't gonna impress the missus, nor will Bitcoins conduct electrons inside an integrated circuit.  Bitcoins could be an adequate subsitute for currency, they just make an abyssmal store of value.

Gazooks's picture

don't need no stinkin' interwebs to transact Au


electricity much?

tmosley's picture

When you flee from your EMP-destroyed homeland, your bitcoins will be waiting for you when you get where-ever you are going.

Your gold may be stolen from you at the border, or you might get it through if you are lucky.

Bitcoin is better for moving wealth across borders.

neidermeyer's picture

I once had a gf that was saved by a few gold coins,, got her on a boat out of VN and got her family released from the thai pirates that boarded their boat... a memory stick and pleading that it contains your "virtual currency" doesn't work in that situation. 

maxblockm's picture

Steve @SRS normally does great work, but that article is not his, it's a repost of someone else's "work"...and it's a shit article, relying more on typeface CHANGES!!! for it's arguments rather than facts.

Colonel Klink's picture

"Nice imaginary store of value you got there"

Fixed it.  Goes along with his imaginary brains.

Spumoni's picture

Fonestar! Yer a fuckin' hero mon! We knew it was you all along...

Tinky's picture

According to the Mt.Gox CEO, "The damn paper wallet was in the back pocket of the pair of jeans that I just picked up from the dry cleaner!"

NaiLib's picture

It does hardly have any impact on _Bitcoin_ if MtGox "find" or does not "find" any missing BTC. Or does Tyler mean that it would "hardly boost the safety" in Gold if someone found a ship wreck full of bullion?  Strange thinking there.

Tinky's picture

You should consider securing the domain ""

fonestar's picture

Yes, correct.  This has no effect upon the general cryptosphere at all.  The people who doubted Bitcoin weren't going to buy any anyways and will just use this as some sort of chicken little validation of their stupidity.  They all deserve to be lined up and shot.

Colonel Klink's picture

You sound as kooky as that PHdee professor who's calling for all climate change deniers to be arrested and imprisoned.

fonestar's picture

The real reason you dipshits hate Bitcoin is because you see it is the beginning of the end of government controlled money.  fonestar doesn't give two fucks if .gov says money is "backed" by tungsten or not.  If you want .gov involved in money you are the enemy.

Do you want .gov money Col?

Spumoni's picture

Right. All us ZH'ers, even the libs like me, are soooo I wear "Support Your local NSA" bumper stickers on my fishing cap. 

You might be a leetle out to lunch.

fonestar's picture

If you support .gov money you are the enemy.  It is that simple!