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Mt. Gox Bitcoin Exchange Finds $114,000 in Old Digital Wallet

Image: Mt. Gox Bitcoin Exchange Finds $114,000 in Old Digital Wallet

By Nick Sanchez   |   Friday, 21 Mar 2014 02:18 PM

Mt. Gox, the embattled Japanese Bitcoin exchange that was hacked and filed for bankruptcy last month, said Thursday it found 200,000 Bitcoins held in an "old format wallet."

CEO Mark Karpeles issued a statement on the Mt. Gox website claiming that the digital wallet was found while researching wallets used before June 2011.

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The wallet accounts for 24 percent of the total holdings the company had when the site crashed, losing more than $450 million in total value. At today's rates, the found coins are worth about $114 million. According to CNN Money, when the company filed for bankruptcy in Tokyo and the U.S. it filed with debts totaling $64 million.

The company says it reported the finding to the bankruptcy court March 10, and had moved the bitcoins to offline, or "cold," storage by March 15.

The new development is likely to cause a flare-up among the customers whose money has been lost since the crash. Mt. Gox was one of the biggest exchanges in the world when it stopped customers from withdrawing money, blaming the disruption on technical troubles and cyber attacks.

Investors hold out little hope they will get their money back, as Japan had not regulated the exchange, and no deposit insurance was offered.

Several other exchanges and Bitcoin banks sought to reassure their own investors and account holders after the crash, among them the U.S.-based Coinbase, which has more than 1 million consumer wallets.

In a joint industry statement, the founders of Coinbase wrote, "As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today. ... We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that bitcoin offers as the future of payment in the Internet age."

Mt. Gox did confirm privately some of their technical issues with fellow industry players who signed the joint statement, and software developers who collectively run the Bitcoin protocol also fixed a few of issues the company initially cited as contributing factors in the failure.

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