Mt. Gox finds $116m worth of bitcoins

The exchange filed for bankruptcy protection stating that 850,000 bitcoins had disappeared

Mt. Gox has said it found 200,000 of the bitcoins it claimed may have disappeared as a result of a software flaw.

In a statement on its website Thursday, the failed exchange said it found 200,000 bitcoins in an old-format digital wallet, reducing the number of bitcoins missing to 650,000.

The finding may be a glimmer of hope for Mt. Gox's customers, although bankruptcy proceedings in Japan and the U.S. are unlikely to result in a speedy determination of which creditors get paid first. The 200,000 bitcoins were worth about US$116 million at market price Friday.

Wallets are software programs for holding and transferring bitcoins, and other payments applications. The wallet in which the bitcoins were found were used in the past and the exchange thought it no longer held any bitcoins, wrote Mark Karpelès, Mt. Gox's CEO.

The Tokyo exchange filed on March 9 for bankruptcy protection in the U.S. in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, after filing for bankruptcy in Tokyo District Court on Feb. 28.

The company suspended trading on Feb. 25 and said it had lost around 750,000 Bitcoins owned by customers and around 100,000 belonging to the exchange, valued at US$474 million at the time.

In its filing to the bankruptcy court in Dallas, Karpelès said he believed that the theft or disappearance "was caused or related to a defect or 'bug' in the bitcoin software algorithm, which was exploited by one or more persons who had 'hacked' the bitcoin network."

While rescanning the wallets and researching their contents, after the commencement of the court proceedings, Mt. Gox found that an old format wallet used before June 2011 held a balance of about 200,000 bitcoins.

The bitcoins have been transferred to offline wallets between March 14 and 15 after first being transferred to an online wallet for security reasons, the exchange said in its statement. The finding of the bitcoins was reported to the court.

Mt. Gox now holds about 202,000 bitcoins, including the recovered 200,000 and about 2,000 held at time of starting the bankruptcy proceedings.

The reasons for the bitcoins' disappearance and their exact number is still under investigation and the figures may still change depending on the results of the investigation, Karpelès said in the statement.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags securityinternete-commerceInternet-based applications and servicesMt. Gox

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?