MtGox lost bitcoins long before collapse, investigators conclude


Ben McLannahan
Financial Times, London
Sunday, April 19, 2015

MtGox, once the world's most popular venue for trading and storing bitcoin, was in effect insolvent long before it collapsed, according to a report that claims thieves were routinely stealing the digital currency from its thinly protected vaults.

When the Tokyo-based exchange pulled down the shutters in February 2014, saying it had lost track of 850,000 coins worth about $500 million, it triggered thousands of claims from creditors, many of whom had been using the platform up until its demise.

But findings by a team of independent investigators suggest that raids had begun more than two years earlier, in late 2011, and that MtGox was practically cleaned out of coins by the summer of 2013. Most or all of the missing coins were stolen straight from an online pool held for settling daily transactions -- the "hot wallet." ...

... For the remainder of the report:


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