Chainalysis Says They’ve Found the Missing $1.7 Billion Dollar Mt Gox Bitcoins

Chainalysis Says They've Found the Missing $1.7 Billion Dollar Mt Gox BitcoinsOn June 8 the U.S. House Financial Services Subcommittee on Terrorism and Illicit Finance discussed the possible connection between cryptocurrencies and criminal activity. The hearing also revealed law enforcement officials know the “destination” of the missing 650,000 BTC lost during the Mt Gox insolvency. Also Read: Global Bitcoin ATM Proliferation Nearly Doubled During May Missing

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Chainalysis Says They've Found the Missing $1.7 Billion Dollar Mt Gox Bitcoins

On June 8 the U.S. House Financial Services Subcommittee on Terrorism and Illicit Finance discussed the possible connection between cryptocurrencies and criminal activity. The hearing also revealed law enforcement officials know the “destination” of the missing 650,000 BTC lost during the Mt Gox insolvency.

Also Read: Global Bitcoin ATM Proliferation Nearly Doubled During May

Missing Mt Gox Bitcoins ‘Destination’ Is Known By Blockchain Surveillance Firms

U.S. officials and blockchain company representatives held a subcommittee hearing on the implications of virtual currencies and illicit financing on June 8. Members of the blockchain subcommittee who testified at the congressional hearing include Jerry Brito (Coin Center), Scott Dueweke (Identity and Payments Association), Kathryn Haun (Stanford Law School), Jonathan Levin (Chainalysis), and Luke Wilson (Elliptic). Both Chainalysis and Elliptic are blockchain monitoring companies that are well known for helping law enforcement with digital currency surveillance.

“This hearing will explore terrorists and illicit use of financial technology (FinTech), the national security implications of virtual currencies such as Bitcoin, and the use of “blockchain” technologies to record transactions and uncover illicit activities,” details the congressional memo.  

One of the Biggest Robberies in History

Chainalysis Says They've Found the Missing $1.7 Billion Dollar Mt Gox BitcoinsDuring the discussion, U.S. Representative, Warren Davidson, R-Ohio, asked the blockchain monitoring company executives why they couldn’t locate the infamous missing Mt Gox coins supposedly lost in 2014.

“I was particularly struck by your opening remarks that we can detect the activity,” explained Representative Davidson. “It seems that if we have this ability, which it seems we theoretically should, then we would be able to find the missing Mt. Gox coins. Why can’t we?”

According to the Chainalysis co-founder Jonathan Levin, the company knows exactly where the missing 650,000 BTC are but doesn’t detail specific information during the hearing. “We actually did find those,” reveals Levin.

Chainalysis was the official investigator in the Mt. Gox bankruptcy case and the destination of those coins is definitely known.

The Destination Is Known, but Can the Bitcoins Be Accessed?

Over the past few months, the U.S. government has been concerned with digital currencies promoting criminal activities. There have been many hearings and bills set forth to tighten regulatory policies and research cryptocurrencies and blockchain behavior. Both Chainalysis and Elliptic have signed partnership deals with law enforcement officials worldwide and claim to have forensic tools that can trace transactions to locations.

Although Levin detailed “the destination of those coins is definitely known,” it doesn’t mean the missing coins can be accessed, and the Chainalysis co-founder has not responded to questions from the press.

What do you think about the statements made by Chainalysis during the congressional hearing? Let us know in the comments below.


Images via Wiki Commons, and Quartz.


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Mark Karpeles Open Letter to Coinlab Looks to Settle Lawsuit for $5M

Mark KarpelesOn May 10 Bitcoin.com reported on how bitcoin’s price rise is slowly bringing the Mt Gox bankruptcy closer to solvency. The former CEO of Mt Gox Mark Karpeles confirmed that the price was helping, but the Coinlab lawsuit was a significant deterrent. Now Karpeles has written an open letter to Coinlab’s founder Peter Vessenes asking

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Mark Karpeles

On May 10 Bitcoin.com reported on how bitcoin’s price rise is slowly bringing the Mt Gox bankruptcy closer to solvency. The former CEO of Mt Gox Mark Karpeles confirmed that the price was helping, but the Coinlab lawsuit was a significant deterrent. Now Karpeles has written an open letter to Coinlab’s founder Peter Vessenes asking him to settle the lawsuit for five million.

Also read: Xapo Forwards Miner Fees to Users After a Grueling Two Weeks of Backlog

 Mark Karpeles Openly Asks Coinlab to Drop the $75 Million Lawsuit

Mark Karpeles Open Letter to Coinlab Looks to Settle Lawsuit for $5M
Mark Karpeles former CEO of the defunct bitcoin exchange Mt Gox.

Lately, Mt Gox claimants have been focused on the words of Mark Karpeles, as he seems to be trying to help people reclaim their funds these days. Karpeles has been talking with Mt Gox claimants on Reddit and telling them bitcoin’s rising price may help the bankruptcy claims. However, because Coinlab is suing Mt Gox for $75 million the defunct trading platform’s customers may not see their money for a very long time.

The problem started when Mt. Gox and Coinlab announced they were forming a partnership where the Canadian company Coinlab would take over the exchange’s American customers. The deal never materialized because Coinlab says Mt Gox breached a contract clause. Furthermore, the trading platform was subsequently hacked and was followed by bankruptcy. Karpeles recent “Open letter to Peter Vessenes,” says now the lawsuit is impeding customers who don’t deserve to lose funds because of a bad business arrangement.       

“This lawsuit today is not CoinLab vs. MtGox, but CoinLab vs. the MtGox customers, now creditors, who have done nothing to deserve being involved in this,” explains Karpeles.

I am writing today in hope to convince you to agree to settle this lawsuit for the five million USD which you owe to Mt Gox since four years ago.

‘A Hope to Stop Hostilities and Accept the Situation’

Mark Karpeles Open Letter to Coinlab Looks to Settle Lawsuit for $5M
Peter Vessenes, Coinlab CEO.

Currently, the CoinLab vs. MtGox lawsuit has been transferred to Japan and documents are locked inside the Tokyo District Court. There have been many bitcoin enthusiasts who believe Coinlab’s lawsuit is unjust and seriously deterring Mt Gox claims over the course of over three years. There is even an organization called Goxdox II, that has a website filled with disturbing issues and leaked documents concerning the CoinLab vs. MtGox lawsuit.

Karpeles agrees the lawsuit is undeserving as he writes to Vessenes saying “maybe it’d be time to consider you have gone far enough and stop with this farce.” The former Mt Gox CEO says Coinlab should settle for the $5 million the company has owed the exchange for over four years.

What I am hoping for today is to see both sides stop hostilities and accept the situation. Your $75 million USD against Mt Gox and Tibanne is clearly without merit, Coinlab never suffered any losses and never even started providing the expected service, and Mt Gox will never see the $5 million USD Coinlab kept.

Former Mt Gox CEO Believes Bankruptcy Trustee Would Agree to the Settlement

Karpeles says he hopes Vessenes will see the post on the Mt Gox insolvency Reddit forum and “stop this while it still makes sense to do so.” He also details that he has no authority to authorize a settlement but believe the bankruptcy trustee would agree to the suggestion.

“Some creditors may argue this is way more than you deserve for having provided virtually nothing to Mt Gox, but at this point going further would only increase costs without any relief in sight, instead delaying further something that shouldn’t take that long,” explains Karpeles.

Whether or not Coinlab and the company’s CEO Peter Vessenes will respond remains to be seen. Allegedly the Coinlab executive wrote on Mt Gox insolvency forum that he was receiving a number of emails concerning the bankruptcy. In the forum post, Vessenes says the rumors that the CoinLab vs. MtGox lawsuit is impeding the bankruptcy is incorrect information. However, the Reddit comment has since been deleted, but a screenshot of the statement was captured.

What do you think about Mark Karpeles open letter to Peter Vessenes? Do you think Coinlab should settle with Mt Gox for $5 million? Do you think the lawsuit is impeding the bankruptcy claims? Let us know what you think in the comments below.


Images via Shutterstock and Pixabay.  


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