Most Mt Gox Bitcoins Were Gone by May 2013, Report Claims

magnifying glass investigation

Mt Gox’s missing bitcoins were stolen from the exchange over a period of time beginning in 2011, according to a new report released today by a group investigating its collapse.

They were gone long before the company’s collapse in February 2014, the report said. Gox had therefore been operating on a fractional reserve basis for most of that time, either knowingly or unknowingly.

The stolen bitcoins had been withdrawn and sold off on various exchanges including Mt Gox itself, and given the timing probably at prices far below the 2013-14 highs.

Tokyo-based bitcoin security firm WizSec, which produced today’s update and a previous one in February, has been conducting an unofficial investigation into Mt Gox’s collapse based on data pieced together from various leaks, hacks and other sources.

Bankruptcy trustee Nobuaki Kobayashi and his police team have still not made all transaction data available, including a list of all the bitcoin addresses Mt Gox used.

WizSec’s report says its team has assembled a list of over 2m bitcoin addresses related to Mt Gox by comparing leaked data with blockchain records and performing clustering analysis on addresses used at similar times.

Huge discrepancy

The resulting chart

Read more ... source: CoinDesk