Mark Karpeles is back in the headlines with a recent interview with PC World. Beyond launching some new services and returning to Twitter over the last several months, Karpeles has otherwise been reticent about talking about Bitcoin to the press since such conversations invariably lead to the…
Karpeles gave IDG News Services, operator of PC World, an interview on the condition that litigation, police investigations, and Mt. Gox not be discussed except in broad terms. CCN has also previously interviewed Mark Karpeles about his new project, forever.net.
Also read: Mark Karpeles Responds to Critics
The public knows, from a leaked business plan, that Karpeles has asserted that the bitcoins were “wiped out due to a leak in the hot wallet.” Karpeles explained further to IDG News that “each time you want to check the balance of a cold wallet, you’re making it less cold.” For years, there have been solutions that would have allowed Mt. Gox to verify cold storage addresses without exposing cold storage keys in an op-sec hazard. Karpeles stopped short of admitting that his personally designed cold storage scheme, developed in 2011, may have been outdated and a veritable black hole.
Karpeles stated that he believes Bitcoin needs physical security measures like those used to protect gold. He posited that Bitcoin exchanges should have round-the-clock operation centers featuring armed guards, hardware token-only access points, and background-checked staff. The more broad strokes that Karpeles reveals, the more it seems that the loss of Mt. Gox’s bitcoins is going to end up being blamed on a rogue employee, the classic scapegoat for many a Bitcoin theft perpetuated by the supposed victim. However, it is also a classic attack vector to infiltrate any type of organization and is reportedly one way that the FBI was able to take down Silk Road 2.0. Karpeles believes that without these types of securities, which resemble those at data centers, more bitcoins will be lost:
Most likely we’re going to see more companies getting hacked, or bitcoin being stolen.
What do you think about Karpeles’ words? What happened to the Mt. Gox bitcoins? Comment below!
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Last modified: February 13, 2020 6:15 PM UTC