Mt. Gox Finds 200,000 of the Missing 850,000 Bitcoins
March 21, 2014 2:51 PM
comment(s) - last by
They were in an "old-format wallet"
has managed to locate about 200,000 of the missing Bitcoins it thought were stolen, which are worth about $120 million USD.
Mt. Gox, which is a Bitcoin exchange service, said it lost about 750,000 of its customers' Bitcoins last month as well as 100,000 of its own. This totals to about $450 million USD.
Since that incident, plaintiffs have filed a class-action lawsuit against the company. Mt. Gox filed for bankruptcy after the incident as well.
Mt. Gox and its
CEO Mark Karpeles
are not allowed to move any money outside of the United States and the company needs to provide full accounting of any assets it has left.
report said Mt. Gox found 200,000 of the 850,000 missing Bitcoins -- which it assumed were stolen -- in an "old-format wallet," which is a digital storage file that was searched after the bankruptcy proceedings.
Mt. Gox said it told the bankruptcy court about the coins on March 10, and that it moved them to an offline site from March 14 to March 15.
Bitcoins can be stored online or offline, in "hot" or "cold" wallets respectively. "Hot" wallets are accessed through a computer network while "cold" wallets can be USB sticks or even a piece of paper.
Now, the search is on for the remaining 650,000 Bitcoins.
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The Von Matrices
The Von Matrices
3/21/2014 11:24:51 PM
Karpeles is definitely maniacal and manipulative, but I don't think he is as unique in this scenario as you make him out to be. Failing companies do this all the time. It's a simple and common psychological trick.
If you simultaneously tell an investor/customer that the company failed and 80% of their money is lost, then they will be forever angry with you. However, if you tell the person only that the company failed, then they assume that 100% of their money is gone and become comfortable with having lost it all. If you then later announce that 20% has been recovered, they will remain grateful toward you for recovering the money (even though it was still the same amount lost in the end).
The only difference between Karpeles and most other companies is that Karpeles was dumb and gave an exact loss in the beginning. Any smart PR person would know that you should never offer numbers unless you have to. He should have acted like every other failing company out there and just kept quiet while the investors/customers speculated a total loss.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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