MtGox Found Bitcoin: 670,000 More According to Insider

On March 4th, a few days before MtGox found Bitcoin totaling 200,000 of their ‘lost’ funds, this was Tweet’ed:

He followed that up with:

I don’t know exactly who Eren is or where his information is from, but I hope we discover more soon. It’s unfortunate that he didn’t make a prediction. I wish he’d said “200k” or “1/4 of those lost” or something, but he didn’t. It could be that this was because he had information that said they were making significant progress towards recovering all the lost funds. In that case, the 200k announcement that followed was just their first success. But Canarslan has followed up.

Just now, on March 25th, his account Tweet’ed on the topic a second time:

That’s really interesting news. If it is true (which I am mildly dubious of), I am very, very curious what it might mean. Where could those missing coins have been, and how did they get here? Is Mark Karpeles guilty of an immense amount of fraud? I had always been one of the few who believed that he was guilty of criminal idiocy and negligence, but if all of the lost coins get magically ‘found’, what does that mean about Karpeles’ role in all of this?

On the more obvious level of what it might mean for us in the Bitcoin space today… I think it’s very, very price-positive if true. If it comes along with a detailed explanation that shows that Karpeles is guilty of mismanagement and not fraud, even better. This discovery would mark complete solvency for MtGox, and likely would also mark a return to functioning for the exchange. It would also turn into a colosso-massive news story. No one has ever ‘found’ a half-billion dollars before. Thanks to the miracle that is trustless, decentralized, public ledgers, though, we did. We did.

The story could easily develop in two very different directions:

  1. MtGox is incompetent but not thieves, the money goes back to its owners, people are happier
  2. MtGox was thieving but the nature of the blockchain prevented them from doing so.

That latter option is what I find really exciting. That’s the sort of news story that can really help out Bitcoin’s standing in the world.

Another first for Bitcoin, and hopefully one that can toss us back into a positive news and price cycle. Congratulations to MtGox for finding this virtual cryptographic treasure trove. Now it can be returned to its rightful owners, and the world can go back to the way it was before all of this drama happened.

Well, except still without MtGox. Never forget: failure and incompetence persist. They do not disappear. Simply because this situation may have turned out well does not mean it will always work out that way. Don’t trust Mark Karpeles or the old MtGox.

renewed faith1 MtGox Found Bitcoin: 670,000 More According to Insider

Well, hopefully MtGox stays dead.

Comments

  1. Donny says

    I think congrats are way too early here. All we have are some tweets. I think you should just alter the article a bit, essentially adding more “If true/in the event this is real” type comments to last couple paragraphs. Otherwise nice reporting on the tweet. =)

    • Ben Isgur says

      The article may have been updated since you posted this. I wrote a hasty version and posted it places to get the news out and have been adding to the article since then.

  2. gamon says

    oh no, gox again… they will come back, price will rebound, gox will be hacked again and price will drop even lower… they should stay where they are and never ever be mentioned again

  3. Carl Hopkinson says

    Karpeles got cold feet when he saw that there was no way he could sell such a massive amount of BitCoin loot without detection. This is probably part of a plea detail where he makes full restitution and in exchange is allowed to stay out of prison and not have to admit to fraud.

    • Ben Isgur says

      I think this is a plausible theory, but it’s worth remembering that we don’t know if Karpeles is a fraudster–he could still just be incompetent.

    • Andy10000 says

      Oh FFS. Do you really think ANYONE is that dumb to think they can get away with stealing half a billion dollars of bitcoin? It takes all of 3 minutes thinking about it to realise it’s completely unfeasable. Even I know it’s stupid to try. It’s not like it’s suddenly dawned on him now that it’s a bit tricky.

      If he’d tried to siphon off a million or two, then that might be more plausible, but it’s his own company. It’s like me sneaking fivers out of my own wallet. Give it up with the conspiracy crap. MK has clearly been busting a gut to track down these coins since Feb despite the personal attacks, including death threats. I’m no fan of his, he’s clearly an incompetent CEO, but he’s not so dumb as to think its possible to steal half a billion dollars.

      • DrD says

        Sorry Andy but it’s already happened and who ever it was MK or AN Other has about $28k (28 BTC) that was mine and all the rest and so far he\they got away with it. So not so dumb. I hope to be proved wrong but not holding my breath.

          • DrD says

            Read again. I said “WAS”. That’s about what they cost me i.e. when he FROZE the withdrawals, 1BTC was trading around $1000, AND it wasn’t November.

  4. Andreas says

    It is obvious that they are not robbed of their cold storage, but they can not access it because of its bad code that generated keys. If this is true, they have been able to back the code where they added their error and can acces all the cold storage wallet as same they may did for the 200k cold wallet.

  5. Bill says

    Hilarious. Such a lie. First tweet is march 4th way before MtGox announced they found only 200K. This last lie/tweet says they “may release” coins to account holders. LOL there is no may about it. They would have to. This is an obvious lie meant to manipulate BTC price and you’re helping the turd.

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