6 ms·

Wow, didn't know Mt. Gox lost 850k BTC, thats 9B USD at the current price. Are these coins traced? Were they quietly sold or are hackers sitting on billions in

by s0rce 9y ago

Wow, didn't know Mt. Gox lost 850k BTC, thats 9B USD at the current price. Are these coins traced? Were they quietly sold or are hackers sitting on billions in BTC?

deleted 9y ago
[deleted]
stuxnet79 9y ago
Kim Nilsson's group have been investigating the Mt Gox incident for years and he gave a presentation some time ago that summarized some of their findings (https://www.youtube.com/watch?v=l70iRcSxqzo https://www.youtube.com/watch?v=l70iRcSxqzo). One of the best summaries of the Mt Gox incident, as well as the fallout and subsequent investigations that I've watched.
- dmix 9y ago
  Any TLDW for the primary theory on who did it? Inside job?
  - stuxnet79 9y ago
    Well worth watching IMO. TLDW, MtGox was compromised more than a dozen times and if 'MagicalTux' and Co would have done their due diligence and notified users the scale of the theft wouldn't have been as high as it ended up being.
ReverseCold 9y ago
The coins stolen are XEM (https://nem.io/ https://nem.io/) not Bitcoin. They're currently tracking the stolen coins to ensure they are not sold. Preliminary evidence suggests that it was a private key stolen and not a network problem. Disclaimer: Am somewhat associated with the team, and I hold a small amount of XEM. Feel free to ask questions.
- cal5k 9y ago
  Interesting. So is the implication here that it was probably an "inside job"? Were the private keys held in cold storage?
  - ReverseCold 9y ago
    From the coincheck press conference, no, the only private key was "hot".
    - larkeith 9y ago
      Christ.
    - cal5k 9y ago
      That is unbelievably stupid.
  - cal5k 9y ago
    More information... looks like they only kept their Bitcoin in cold storage. Their altcoins were not. Dear god, the stupidity: https://bitpinas.com/news/coincheck-press-conference-japanese-english-translation/ https://bitpinas.com/news/coincheck-press-conference-japanes...
bobcostas55 9y ago
Some of the BTC were recovered, and it's an interesting case legally because the claims were converted to Yen, and the BTC are now worth far more than the claims. Matt Levine has a good writeup: >In Mt. Gox's bankruptcy -- as is generally the case in bankruptcy -- claims against it were reduced to yen amounts shortly after the bankruptcy (in April 2015, when bitcoin was mostly in the $400s), and creditors are entitled to recover up to 100 percent of the yen amount of their claims, but no more. But there is more: >>The bankruptcy estate for Mt. Gox holds 202,185 bitcoins worth about ¥169 billion or $1.5 billion at current rates. Meanwhile, the trustee has recognized claims by exchange customers of ¥46 billion based on the April 2014 bitcoin price, a procedure that lawyers say has a sound basis in bankruptcy law. https://www.bloomberg.com/view/articles/2017-11-14/bitcoin-bankruptcy-wasn-t-really-a-bust https://www.bloomberg.com/view/articles/2017-11-14/bitcoin-b...
jacobush 9y ago
So in the future, someone might pay off the Mt. Gox debt for shits and giggles!

by s0rce 9y ago

Wow, didn't know Mt. Gox lost 850k BTC, thats 9B USD at the current price. Are these coins traced? Were they quietly sold or are hackers sitting on billions in BTC?

deleted 9y ago

[deleted]

stuxnet79 9y ago

Kim Nilsson's group have been investigating the Mt Gox incident for years and he gave a presentation some time ago that summarized some of their findings (https://www.youtube.com/watch?v=l70iRcSxqzo https://www.youtube.com/watch?v=l70iRcSxqzo). One of the best summaries of the Mt Gox incident, as well as the fallout and subsequent investigations that I've watched.

dmix 9y ago
Any TLDW for the primary theory on who did it? Inside job?
- stuxnet79 9y ago
  Well worth watching IMO. TLDW, MtGox was compromised more than a dozen times and if 'MagicalTux' and Co would have done their due diligence and notified users the scale of the theft wouldn't have been as high as it ended up being.

ReverseCold 9y ago

The coins stolen are XEM (https://nem.io/ https://nem.io/) not Bitcoin. They're currently tracking the stolen coins to ensure they are not sold. Preliminary evidence suggests that it was a private key stolen and not a network problem. Disclaimer: Am somewhat associated with the team, and I hold a small amount of XEM. Feel free to ask questions.

cal5k 9y ago
Interesting. So is the implication here that it was probably an "inside job"? Were the private keys held in cold storage?
- ReverseCold 9y ago
  From the coincheck press conference, no, the only private key was "hot".
  - larkeith 9y ago
    Christ.
  - cal5k 9y ago
    That is unbelievably stupid.
- cal5k 9y ago
  More information... looks like they only kept their Bitcoin in cold storage. Their altcoins were not. Dear god, the stupidity: https://bitpinas.com/news/coincheck-press-conference-japanese-english-translation/ https://bitpinas.com/news/coincheck-press-conference-japanes...

bobcostas55 9y ago

Some of the BTC were recovered, and it's an interesting case legally because the claims were converted to Yen, and the BTC are now worth far more than the claims. Matt Levine has a good writeup: >In Mt. Gox's bankruptcy -- as is generally the case in bankruptcy -- claims against it were reduced to yen amounts shortly after the bankruptcy (in April 2015, when bitcoin was mostly in the $400s), and creditors are entitled to recover up to 100 percent of the yen amount of their claims, but no more. But there is more: >>The bankruptcy estate for Mt. Gox holds 202,185 bitcoins worth about ¥169 billion or $1.5 billion at current rates. Meanwhile, the trustee has recognized claims by exchange customers of ¥46 billion based on the April 2014 bitcoin price, a procedure that lawyers say has a sound basis in bankruptcy law. https://www.bloomberg.com/view/articles/2017-11-14/bitcoin-bankruptcy-wasn-t-really-a-bust https://www.bloomberg.com/view/articles/2017-11-14/bitcoin-b...

jacobush 9y ago

So in the future, someone might pay off the Mt. Gox debt for shits and giggles!