Hackers Claim to Have Evidence of Fraud Surrounding Mt. Gox Closure

By Christie Barakat 


*Mark Karpeles, CEO Mt. Gox (Bloomberg)

A group of hackers told Forbes that they’ve broken into Mt. Gox servers in order to bring to light what actually happened in the days leading up to the company’s bankruptcy filing, which left its customers without hundreds of millions of bitcoins. Mt. Gox has not been forthcoming with the Bitcoin community apart from attributing the closure to a massive hacker attack.

“Hackers took over the Reddit account and personal blog of Mark Karpeles, Mt. Gox’s CEO, to post an angry screed alleging that the exchange he ran had actually kept at least some of the bitcoins that the company had said were stolen from users,” said Forbes. Reddit moderators removed the hackers’ post soon after it was posted saying that stolen material was not permitted in the subforum, but the community had already been drawing its own conclusions.

In its three-year history, Mt. Gox customers experienced technical difficulties so often — delayed trades, suspended withdrawals and offline issues — that users started using the term “goxed” to describe user issues: “You’ve been goxed!”

The hackers accessed a massive database and 716 megabyte file detailing over a million trades, among other things, and posted it to Karpeles’ personal website. According to Forbes: “In the hackers’ summary of Mt. Gox’s balances in various currencies, they point to a claimed balance of 951,116 bitcoins, which they take as evidence that Mark Karpeles’ claim to have lost users’ digital currency to hackers is fraudulent. ‘That fat fuck has been lying!!’ a note in the file reads.”

Bitcoin experts haven’t seen the movement of the 850,000 bitcoins that Mt. Gox claims to have lost in its bankruptcy filing. The coins should be accessible on the public transaction ledger meant to prevent fraud and forgery in the Bitcoin economy.

Forbes reporter, , said that as of yet he has been unable to verify the hackers’ claims. “I couldn’t verify that Sunday’s database dump was real, or that it showed any of the “lying” that the hackers claimed. In fact, it may simply show how Mt. Gox’s accounting mismatched with its actual store of Bitcoins — that it was counting bitcoins as being safe in its coffers when they had already been stolen by thieves.”