Did Mt. Gox screw you over... Maybe not so much anymore

[Steamtyme]

Hey so this was before my time, but I hear this small business; the biggest Bitcoin exchange at the time. Got hacked lost a bunch of BTC then filed for bankruptcy freezing everyones funds.

I know there was more to it, but most of it has been a warning for newer adopters moving into the market. Don't leave your BTC on an exchange, further to that anywhere you don't control the private keys.

Reading up on them a while ago, it looked like a slap in the face was coming for the customers who have held out hope of receiving their funds back... at that point in any shape or form. The twist was that while FOMO was fueling the meteoric rise in BTC price, the CEO of Mt. Gox was about to earn a mint as Japans bankruptcy laws would have made the restitution equal to the FIAT value back in 2014. Crazy right, would have been a kick in the teeth to many.

Well your teeth can be placed back in there proper mounting as a court in Japan, halted the Bankruptcy proceeding and started a Civil rehabilitation progress. The gist of that is that you will be paid back in BTC. Now I don't know what the percentage of payout compared to the amount held is. I can't imagine it will be a 1 for 1 because they obviously lost hundreds of thousands of BTC. I can only imagine it will be better than it was going to be, and better than nothing all together.

Hopefully this puts a smile on any long term adopters face. Bonus you can still cash in on the many Fork coins that would accompany those BTC.

Here is the article I found discussing the payout.
https://cryptodisrupt.com/creditors-to-receive-1-billion-bitcoins-in-mt-gox-settlement/

And just a nice round up of Mt. Gox's past

https://cointelegraph.com/news/the-mess-that-was-mt-gox-four-years-on

[Xester]

There are many stories circulating around the web about that hacking incident last 2014. Some said it was a inside job and they said they are hacked and that they can only recover 200,000 bitcoins. But still at this point of time the dollar value have already been reached by Mt. Gox and they are selling a huge amount of bitcoins to refund their clients.

[jaocoincrypto18]

I thought that latest December 2017 ultimate Bitcoin crash was due to ultimate corrections and cost me everything because i bought my bitcoin at the price of $19,000 then with no choice i sold it at $9,200 but when it was revealed that the crash is not a correction but was due to Mt.Gox events then of course like many other we have been screwed by this exchanges. I believed that the hacking incident is just a drama but the truth is they are one of the big whales and want to sell their Bitcoin at the highest price.

[jseverson]

I can't imagine it will be a 1 for 1 because they obviously lost hundreds of thousands of BTC. I can only imagine it will be better than it was going to be, and better than nothing all together.

I stumbled upon this the other day:

https://www.reddit.com/r/mtgoxinsolvency/comments/8uoa5g/do_we_know_the_total_amount_of_btc_claims_from/

So not taking into account new claims from CR:

If Gox has 137,891 BTC and claims are for 795,329 BTC, then that means 17.3%.

So if we have a claim for 10 BTC, we should roughly get back 1.73 BTC (plus forks) on top of the $4830 (in JPY) (10 x $483), as part of the bankruptcy process that someone said is still part of the equation.

I guess this is why people in here are saying 15-18% of BTC claim, in addition to the JPY.

Nothing seems to have been confirmed at the moment, but the current proceedings seem to be infinitely better than $500 per Bitcoin lost. All things considered, this is probably the best case scenario for those affected. They definitely still got screwed though as they could have kept the full amount if this didn't happen.

[Steamtyme]

I thought that latest December 2017 ultimate Bitcoin crash was due to ultimate corrections and cost me everything because i bought my bitcoin at the price of $19,000 then with no choice i sold it at $9,200 but when it was revealed that the crash is not a correction but was due to Mt.Gox events then of course like many other we have been screwed by this exchanges. I believed that the hacking incident is just a drama but the truth is they are one of the big whales and want to sell their Bitcoin at the highest price.

That sucks, I did find it interesting that there was a snippit about the price correction( I still believe this) being blamed on MT. Gox panic selling to pay off creditors. It may have played a part, but the ATH was driven completely by FOMO and that can't be ignored. I'm just over a year into this world, and I stopped a lot of people from getting into coins in December I didn't hold enough until the ATH but I did ok.

Someone there may know more than they are saying that is true, the other article I quoted did speak about other charges that had been laid in helping move the BTC around, and how the CEO came under more scrutiny when they "found" 200,000 in cold storage, hard to forget about something like that.

I stumbled upon this the other day:

https://www.reddit.com/r/mtgoxinsolvency/comments/8uoa5g/do_we_know_the_total_amount_of_btc_claims_from/


Nothing seems to have been confirmed at the moment, but the current proceedings seem to be infinitely better than $500 per Bitcoin lost. All things considered, this is probably the best case scenario for those affected. They definitely still got screwed though as they could have kept the full amount if this didn't happen.

Thanks for adding that, it does give an idea of what people could come to expect. It will be interesting to see if the 500 per BTC remains in place with the bankruptcy proceedings being halted.
Yeah anyone who was known to cash out and not HODL will have done all right with the price increase especially if it starts to climb again as they receive their payout. It's hard to look back honestly as hindsight is always 20/20, but would any of these people held onto everything they had on the exchange? or was it there to sell? I bet a small percentage had BTC there because they bought it to HODL, a larger percentage had it there for day trading trying to grow the bag and pull out small profits. The remainder where probably miners trying to sell to keep running.

[squallw]

If mtgox stops the market dump would be good for us and for crypto's world.
Mtgox already dumped some thousand bitcoin in the market for repay the victims in USD, but i read that it may stop because they decided to repay in Bitcoin so the dump won't be necessary anymore.

[jseverson]

Yeah anyone who was known to cash out and not HODL will have done all right with the price increase especially if it starts to climb again as they receive their payout. It's hard to look back honestly as hindsight is always 20/20, but would any of these people held onto everything they had on the exchange? or was it there to sell? I bet a small percentage had BTC there because they bought it to HODL, a larger percentage had it there for day trading trying to grow the bag and pull out small profits. The remainder where probably miners trying to sell to keep running.

That's true, but any victim you ask at this point will likely say they planned to hold and that Mt. Gox screwed them, despite some potentially earning more because of the event lol.

But yeah, at the end of the day, they would still have to go through the hassle of a claiming process and were effectively robbed of their ability to make decisions for their funds. It's really great that something is being done, but I'd still be pretty pissed if I were in their situation and I wouldn't be satisfied with anything less than a 1:1 return. I wouldn't be surprised if a few of them still push for that somehow.

[Roche44]

Thank you for sharing the links of nice article. I think MT. Gox didn't screw over me. Cause I have very few investment on that time. I believe that it didn't screw anyone so much.

[LeviathanBarrage]

There are many incidents happen regards to hacking. I hope this sort of phenomenon will decrease by developing the technology.

[Markmolotok1488]

I hope that the victims will receive as many of their funds as possible, I am glad that this process does not stop. Still, it's really better than nothing. We are waiting for news.

[European Central Bank]

i just arrived when this happened. there were some very sad stories and i hope no one did anything stupid. i also hope everyone involved kept ahold of their gox details otherwise it would be doubly depressing if you hadn't been able to make a claim.

i've read in a few places they may be waiting until 2020 for an actual payout. that puts bitfinex's decision to force a haircut on everyone to avoid bankruptcy after their hack into perspective. actual law sure moves slow.

[bountyjunkie999]

For Mtgox the whole market effected. That’s why many persons are not accepting mtgox. They also are trying to market dump. Buy bitcoin has large amount of resources. That’s why they can overcome this problem.

[2fresh]

For Mtgox the whole market effected. That’s why many persons are not accepting mtgox. They also are trying to market dump. Buy bitcoin has large amount of resources. That’s why they can overcome this problem.

I can assure you people already hated gox before all the dumping.
Think about all the things karpeles has done and all the people he f*cked over.

[zinson01]

Investors in the cryptocurrency market has faced loss in a number of occasions. Hackers were one of the causes, as the demand continues to rise people with intentions of stealing has risen. One of these report were hackers hacked the exchange firm to steal the coins, leaving the investors who keep their coins there to face a total loss.

[btyco]

I'm sure that everyone is happy to hear that mt gox is no longer going to dump bitcoin into the market. The fear that engulfed the market every time gox moved some coins was too much for us all

[Steamtyme]

That's true, but any victim you ask at this point will likely say they planned to hold and that Mt. Gox screwed them, despite some potentially earning more because of the event lol.

But yeah, at the end of the day, they would still have to go through the hassle of a claiming process and were effectively robbed of their ability to make decisions for their funds. It's really great that something is being done, but I'd still be pretty pissed if I were in their situation and I wouldn't be satisfied with anything less than a 1:1 return. I wouldn't be surprised if a few of them still push for that somehow.

Yeah it's easy to say they wouldn't have cashed in, but it's hard to not sell at all the ATH's that were set. I think most people had just given up so it's a nice twist on a sad chapter.

I can assure you people already hated gox before all the dumping.
Think about all the things karpeles has done and all the people he f*cked over.

Until reading this I wasn't even aware of the coin dumping. It came at a bad time while the FOMO was wearing off but I think it was negligible in the grand scheme of the correction.

The more I read on the original MT. Gox issues the crazier it gets, kind of glad I wasn't around then, as I probably would have lost something.

[AnthonyLa]

That's an interesting post. Back in 2014, the Mt. Gox incident stumbled everyone. A huge amount was hacked back then and still many rumors are heard in the market regarding that incident.

[DavidBolster]

There aren't any solid confirmation from a legit source at the moment. But so far, right now, these claims are true. People were put in trouble due to the actions of the said person mentioned in the post. But they are getting reimbursed for it. Although there aren't any guarantee whether they are getting a 100% fix for it.

[btcmaster999]

Actually I don't see any real news based on this topic also if it’s real then it will be problematic for us also people will suffer a lot based on this topic or mentioned topic we need to solve this problems also still they don’t assure about this problems that it will be solve or not.

[furry04]

the amount of stolen btc`s are really significant to prevent the market for increasing and going further and no matter what they do, the refund would not correspond the pain of the investors in which case are the victims, and so do I believe that it was an inside job.