$2 Billion Lost in Mt. Gox Bitcoin Hack Can Be Recovered, Lawyer Claims

[AmoreJaz]

This sounds a lot easier then it actually is, they know very little information about those hackers, and if they do decide to persue this, it'll take a lot of manpower, co-operation between countries, and probably a lot of money for them to recover funds that they will 99 percent end up pocketing...

This is just an attempt for the law firm to get a lot of money, publicity, and then the governments want a cut of the pie, no actual people will benefit from this, which is definitely quite sad considering how much money was lost during the hack.

I'm grateful for the bump, I've actually never seen the article or this thread before.

in a nutshell, theres more than meets the eye in this situation! crypto users who lost money from this hack should not expect anything from this news. sounds great but lets look at the reality!

 wonder how far these lawyers will go out their way to follow through this case. or this is just another media propaganda?

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[Sithara007]

I heard that Nobuaki Kobayashi (Mt Gox bankruptcy trustee) is getting interested in the Alexander Vinnik case. He has requested for details from the United States Department of Justice (DOJ). But at the same time, Kobayashi hasn't made his opinion clear on the proposal by ZP Legal, to recover up to BTC200,000 from the Mt Gox hackers. However, Mr. Kobayashi admitted yesterday that his team had contacted Alexander Zheleznikov, who is heading ZP Legal. I think it may be possible to do some bargain and get the commission reduced from 50%-75% to around 20%-25%.

BTW, I heard that CoinLab is now claiming $16 billion from Mt Gox (which sounds ludicrous, considering the fact that Kobayashi has less than $650 million in his hand from the sale of the recovered coins). Will this amount (in the unlikely event of the trustee approving their claims), be paid from the bankruptcy fund?

[lobat999]

This news development about Mt. Gox hack seems a wishful thinking to me for the fact that various efforts were exerted over the past several years but nothing concrete had happened to recover those lost Bitcoins. Assuming they were indeed able to track those  Bitcoins in the hands of few who benefited from it, I think those Bitcoins may have been long gone or has been exchanged with different hands through other mixing services making it more difficult to recover.

Aside from that, I think that the law firm, even with outstanding track records, may have decided to pursue it maybe just for publicity stunt and does want to obtain handsome hourly payment for their services aside from charging 50 to 75 percent if ever they succeeded in recovering it. Also, as per information published on that article, that law firm states that "their assumptions about connections are correct" which may give false hope to its stakeholders once proven they are wrong.

[judeafante]

Moscow-based law firm ZP Legal claims to have identified Russian nationals who received bitcoin stolen in the 2014 hack of Mt Gox. Local law enforcement is investigating Alexander Vinnik, the alleged operator of the defunct exchange BTC-e. ZP Legal says Mt Gox creditors who come forward as potential BTC-e victims may help Russian authorities establish a connection between the exchanges. To cut a deal with law enforcement, those who benefited from the Mt Gox hack might offer to return funds to the exchange’s creditors, the law firm reckons.

https://www.coindesk.com/2-billion-lost-in-mt-gox-bitcoin-hack-can-be-recovered-lawyer-claims

This should have been resolved a long time ago, but authorities should do everything that all the last of Bitcoin will be given back to the claimants, Mt Gox hacking continues to haunts us with it's bad memory and only if we can resolve and have a good ending for those claimants, then we can close this bad chapter, it's always been a battle between security and hacking attempts ever since, our computer becomes our own bank.

[hahahafr]

MT.Gox hack has always been a big mystery which never got solved so it would be great to see the culprits brought to book. However, I doubt whether this can really be resolved and funds returned to their rightful owner.

[justagox]

I heard that Nobuaki Kobayashi (Mt Gox bankruptcy trustee) is getting interested in the Alexander Vinnik case. He has requested for details from the United States Department of Justice (DOJ). But at the same time, Kobayashi hasn't made his opinion clear on the proposal by ZP Legal, to recover up to BTC200,000 from the Mt Gox hackers. However, Mr. Kobayashi admitted yesterday that his team had contacted Alexander Zheleznikov, who is heading ZP Legal. I think it may be possible to do some bargain and get the commission reduced from 50%-75% to around 20%-25%.

BTW, I heard that CoinLab is now claiming $16 billion from Mt Gox (which sounds ludicrous, considering the fact that Kobayashi has less than $650 million in his hand from the sale of the recovered coins). Will this amount (in the unlikely event of the trustee approving their claims), be paid from the bankruptcy fund?

ZP contacted trustee with the help of the Russian embassy as far as I understand. He's stated numerous times they are uncooperative, whatever that means. Coinlab was awarded about $10 million during assessment phase (details still sparse) and they are going into litigation now, with a lawsuit filed a few days ago.

Peter Vessenes has got to be one of the worst bitcoiners

[7788bitcoin]

in a nutshell, theres more than meets the eye in this situation! crypto users who lost money from this hack should not expect anything from this news. sounds great but lets look at the reality!
wonder how far these lawyers will go out their way to follow through this case. or this is just another media propaganda?

There are people who lost a lot of bitcoin in that hack and the amount of profit that the Mt Gox trust made selling the coins they had in their wallet is really huge and they were selling their coins when ever the price touched all time high valuation and these coins belong to the users and they must be properly compensated rather than shorting them and if a team of lawyers could get that for them taking without spending much money, then it is a good option.
Not entire sure how they can recover but there is a possibility because the Mt Gox trust is a registered entity.

[Wexnident]

Moscow-based law firm ZP Legal claims to have identified Russian nationals who received bitcoin stolen in the 2014 hack of Mt Gox. Local law enforcement is investigating Alexander Vinnik, the alleged operator of the defunct exchange BTC-e. ZP Legal says Mt Gox creditors who come forward as potential BTC-e victims may help Russian authorities establish a connection between the exchanges. To cut a deal with law enforcement, those who benefited from the Mt Gox hack might offer to return funds to the exchange’s creditors, the law firm reckons.

https://www.coindesk.com/2-billion-lost-in-mt-gox-bitcoin-hack-can-be-recovered-lawyer-claims

Ouch. That's a huge cut out of them if their claims could ever become true. 50-75 percent cut on the coins retrieved, and the coins that could be retrieved would only amount to a quarter of the original amount. Though if it ever was returned, at least the owners would have something to have by the end of it. Although reduced by a huge amount. Sadly though, the returned amount would not be on bitcoin but rather a flat currency instead. I'd rather receive bitcoin to be perfectly honest. Much more worth it imo.

[oleg681010]

MT Gox still ruins people's lives...

[yoseph]

if its can solve the MT.Gox mystery and proof at the trial I really appreciate their hard work in tracking down the hackers.
During this time the cryptocurrencies Hack is very difficult to track, because the cryptocurrency itself is anonymous.
bitcoin owners who have been stolen really hope that this mystery will soon be solved and can be immediately returned to its original owner.

I at least hope that the people who's lost their money will be able to get some of the money they lost when the exchange was hacked. If indeed about $2 billion worth of Bitcoins hs been recovered, it means most of them will be getting some profits since the stolen bitcoins were worth around $450 million at the time of the hack.

[lobat999]

According to Mt Gox creditors, ZP Legal contacted them earlier this year, offering an opportunity to recover almost a quarter of the missing 850,000 bitcoins stolen in the 2014 hack of the exchange. (The coins were worth more than $450 million at the time of the theft and $8.5 billion today.)

I have an interesting idea! Assuming that a quarter of all 850,000 Bitcoins that was lost during the hack could be recovered, and with a 50 -75 percent cut by that law firm, the stakeholders could receive an estimated net of more or less $530 million from current value which is a little bit higher than its estimated value of $450 million at the time of the hack.

Now I was thinking if there was an "under the table deal" between this  law firm and those that benefited from this hack? So that they could come into a negotiated deal which could by far free those people from legal liabilities and so in the end, they all go home in a win-win situation. I think a compromised agreement will be made out of this crypto drama.


Source: https://www.coindesk.com/2-billion-lost-in-mt-gox-bitcoin-hack-can-be-recovered-lawyer-claims

[justagox]

Want to correct some misconceptions. Trustee is still working on returning the bitcoins he is holding. Current estimates put it at about 16% of claim + $480 usd per coin.
Also, stolen coins going through btce is well known and is almost but certain. Vinnik had account and doxxed himself on gox as WME. It is the current guess by many that the coins went to btce and any further recovery is tied to Vinnik. Until further events happen in regards to his extradition (supposed to be by January) it is hard to know how this will take course

[lobat999]

Adding to the complexity of the situation is that many of the entities are interested to have a share of the recovered funds but I guess they will get into a compromise on this matter! Anyway what ever will be the outcome of the investigations lately, I just hope that those who had suffered loss during the hack will be given justice and just compensation and a chance to move on. Imho.

[boltz]

If this is true, then the MT Gox victims could get their hope back and maybe even their lost bitcoin but that firm will take some for sure if they provide that service. The amount of money that those bitcoin are worth now is big enough to cover any costs that will take in order for the operation to be done.
Even so , the difficulty in this is way above normal and I still don't know how they could recover such a big amount if bitcoin who were lost more than 4 years ago because a lot of blocks have been mined since then. Anyway I hope all of the Mt Gox victims will have another reason to celebrate sooner than they think.

[lobat999]

If this is true, then the MT Gox victims could get their hope back and maybe even their lost bitcoin but that firm will take some for sure if they provide that service. The amount of money that those bitcoin are worth now is big enough to cover any costs that will take in order for the operation to be done.
Even so , the difficulty in this is way above normal and I still don't know how they could recover such a big amount if bitcoin who were lost more than 4 years ago because a lot of blocks have been mined since then. Anyway I hope all of the Mt Gox victims will have another reason to celebrate sooner than they think.

That law firm might be outstanding and what they are talking maybe true - thus the possibility to recover those lost BTC maybe realized! But I feel an injustice to those victims of that hacking incident since its not right to charge their customers with an insanely 50 - 75 percent cutback!

Considering the huge amount of money involved in this matter, I guess that condition makes them looks like opportunists which in essence, they are just like those hackers! Greed sets in again.

[Lauren Smith]

It would be nice if what the lawyer claims is true and can be done.  The thing is, lawyers tends to say things to console the victims for the sake of getting paid for their services.  It had been several years passed and yet, the lost Bitcoin had not been recovered.  Even if they pinpoint who the receivers are, it is quite impossible to get 100% of the lost funds of MT. Gox because they could had been sold already.  Another thing is the accuracy of finding involved people.   It is easier said than done IMHO.

I don't think they will get any funds. This is just a spectacle. Even if they do retrieve the funds who do they give them to or what do they do with them? You right lawyers do console theor clients like that. I always say when you sue someone like a custody battle and things like that the only winners are the two lawyers and they are laughing all the way to the bank.

[Kyraishi]

in a nutshell, theres more than meets the eye in this situation! crypto users who lost money from this hack should not expect anything from this news. sounds great but lets look at the reality!

 wonder how far these lawyers will go out their way to follow through this case. or this is just another media propaganda?

Agreed. There is 100 percent no way people will get their money back, even if the money is recovered, it needs to go through the law firm, the government, and other possible entities before distribution of the remaining funds starts, which is going to be rough, because will anyone actually bother to send out all of these funds? The likely answer will be no.

[clickerz]

If this is true, then the MT Gox victims could get their hope back and maybe even their lost bitcoin but that firm will take some for sure if they provide that service. The amount of money that those bitcoin are worth now is big enough to cover any costs that will take in order for the operation to be done.
Even so , the difficulty in this is way above normal and I still don't know how they could recover such a big amount if bitcoin who were lost more than 4 years ago because a lot of blocks have been mined since then. Anyway I hope all of the Mt Gox victims will have another reason to celebrate sooner than they think.

That law firm might be outstanding and what they are talking maybe true - thus the possibility to recover those lost BTC maybe realized! But I feel an injustice to those victims of that hacking incident since its not right to charge their customers with an insanely 50 - 75 percent cutback!

Considering the huge amount of money involved in this matter, I guess that condition makes them looks like opportunists which in essence, they are just like those hackers! Greed sets in again.

I pity  that this goes this way. Its unfortunate to those  who loss their money in this Mt. Gox exchange scandal. It seems that the victims will be scammed again in recovering their crypto assets. But, if they can recover I think its better than never. But its difficult to identify those clients especially now that several years had past.

[justagox]

https://www.coindesk.com/criminal-case-against-failed-wex-exchange-points-at-russian-law-enforcement

[gentlemand]

https://www.coindesk.com/criminal-case-against-failed-wex-exchange-points-at-russian-law-enforcement

Hmm. Would it be a surprise if this was true? American law enforcement had plenty of fun on Silk Road.

It's certainly doing no favours for Russia's image to the outside world but they seem to be long past minding about that.