Mt. Gox Confirms ~200,000 Bitcoins Under Their Control... But Bitcoiners Already Knew That

Mt. Gox has released a PDF in Japanese and English detailing the recovery of ~200,000 BTC.  Read it here!

 

This news was originally broken in a Japanese language post on Yahoo, Mt. Gox's Mark Karpeles admitted that Mt. Gox was still in control of 200,000 BTC, roughly 23.52%  of the 800,000 BTC that they claimed to have lost in their civil rehabilitation proceedings.

The google translated text of the Yahoo article is as follows:

Bitcoin exchange Mt.Gox which collapsed in February announced on 20th that they have found they're still in possession of the 200,000 BTC out of the 850,000 BTC that was reported to be lost.

According to the lawyer, they found them on the 7th of this month by searching through a storage on the internet called a "wallet" which was being used by MtGox up until June 2011.

MtGox has reported that they have lost almost all of the 850,000 BTC owned while filing for bankruptcy protection on February 28th.

Mt. Gox

But Bitcoiners Already Knew That

13 days ago, astute Bitcoiners on Reddit noticed a 180,000 BTC transaction on the blockchain.  It only took several hours before more Bitcoiners came forward with a Bitcoin trail that tied the 180,000 BTC transaction back to Mt. Gox.

By following the chain of transactions from a known BTC withdrawal broadcasted by Mt. Gox's api, Bitcoiners were able to know beyond a doubt that someone had moved 180,000 BTC of the supposedly lost ~850,000 BTC previously under the control of Mt. Gox.  Through more blockchain detective work on known Mt. Gox Bitcoin addresses, Bitcoiners on Reddit came to the conclusion that Mt. Gox has at least 200k BTC.

This transaction came well after Mt. Gox claimed that they had lost ~850,000 BTC of their users funds.  It seems that Mt. Gox is taking steps towards "finding" the "lost coins. Recently, Mt. Gox reopened their website to allow users to log in and view their previous fiat and BTC balances.

The most recent release from Mt. Gox via Yahoo! confirmed that the transactions followed by Bitcoiners on the 7th of March were in fact initiated by Mt. Gox.  Additionally, Mt. Gox's lawyer said that the Bitcoins were "found" in a wallet on internet storage.

What exactly that means has yet to be fully explained by Mt. Gox.  The speculation on all fronts is exacerbated by unconfirmed chatlogs between hackers and Mark Karpeles.  Karpeles could be in control of over 1 million BTC, or none, or just ~200,000.  The clear facts are simple though: Mt. Gox has claimed one thing or another consistently over the last few months, and each and every one of those claims has turned out to be a flat out lie.

It's no wonder that Karpeles' lawyers have advised him to stay quiet.

As always, stay tuned to CCN for more updates on Bitcoin news.

Last modified (UTC): April 20, 2014 6:34 PM

About the author

Caleb Chen

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.