Report Suggests Mt. Gox Bitcoin Loss Was an Inside Job

By Jamie Condliffe on at

It's been almost a year since the bitcoin locker Mt. Gox went offline and took its digital currency with it. Now, a report in Japan's Yomiuri Shimbun newspaper claims that 99 per cent of the cryptocurrency that went missing from Mt. Gox falls were a result of "internal system manipulation".

The newspaper reports that only 7,000 of the 650,000 bitcoin that went missing can be attributed to hacking attacks. The rest, the article claims, must have been lost through some other, internal means. The article doesn't suggest that it's the work of CEO Mark Karpeles.

At the time, Mt. Gox blamed the disappearance of its bitcoin on a 'transaction malleability' flaw its underlying code. That vulnerability was later fixed, but not before Mt. Gox was forced to give up and file for liquidation.

Rumours about an inside job circulated at the time, but they were denied by bitcoin developers and Mt. Gox alike. The fact that the rumour has resurfaced suggests that there may be more truth to the claims than first thought. [Yomiuri Shimbun via Coin Desk]