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They were in an "old-format wallet"

Mt. Gox 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.


A CBC News 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. 

Source: CBC News



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By drycrust3 on 3/22/2014 2:49:44 PM , Rating: 2
quote:
Actually one step better he had to pay hundreds of thousands to become a federal licensed money trader in the U.S., which he did last year.

How much money did your Department of Homeland Security seize in that process? Apparently they seized all the money in an account in a sub-subsidiary of Mt Gox called Dwolla, which was one of the steps between Mt Gox and the rest of the US banking system, in May last year. See:
Very sorry, URL isn't accepted. It was an ars technica article titled "Feds reveal the search warrant used to seize Mt. Gox account".
According to this report, Dwolla was a subsidiary of Mutum Sigillum, which was a subsidiary of Mt Gox. Mt Gox customers' money would be transfered via Wells Fargo from their Mt Gox account to Dwolla. According to the report Karpeles had made several false declarations in the Wells Fargo account opening account forms, such as that he wasn't involved in transferring money under customers instructions and that they didn't exchange money for customers, which the arrest warrant says wasn't true.


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