Is Potential Cyber Attack Targeting Mt. Gox Creditors?

• Mt. Gox has reported an unauthorized login attempt to its creditor accounts.
• Mt. Gox still holds 90.334K BTC in its wallet: Arkham Intelligence data.

The defunct crypto exchange Mt. Gox creditors have reported numerous brute force attempts on their accounts, evoking the fear of a potential cyberattack. The Mt. Gox creditor subreddit has been filled with screenshots from users displaying multiple login attempts on their accounts, in the last 24 hours. While others reported issues logging into their accounts. This raised alarms within the community, and the website went into maintenance mode. 

Users have shared several alarming experiences; one user pointed out that they are adding another layer of complexity to the situation without allowing creditors to change the repayment information. Another user mentions, “Just received 15 notifications for account login. Now can’t get into my account. Is Mt. Gox under attack???” Moreover, several similar issues echoed by many others who faced the same problem. Those who regained access to their accounts are left uncertain about the proper course of action, particularly whether to reset their passwords. 

The community is anxious about the suspected attacks, questioning the motive behind targeting Mt. Gox. Notably, after the Bitcoin assets are transferred for repayments.

The Hack Record of Mt. Gox

Looking back at the 2011–2014 Mt. Gox hack, the first confirmed security breach in 2011 continued until a massive theft in 2014. In 2011, the exchange reported that attackers had stolen about 25,000 BTC from 478 user accounts. Later, hackers stole over 650,000 bitcoins from Mt. Gox’s hot wallets. The incident went undetected for years due to the company’s negligence from early 2012 until its crash in 2014. They suspended trading and went offline in early 2014. 

The final rehabilitation plan was approved by the Tokyo courts in June 2023. After yet more delays, the final date for customers that chose the early payout to be repaid is set for October 31, 2024.

Mt. Gox transferred approximately 43,000 Bitcoins, valued at $3 billion, on May 28, 2024. That marks the first such transfer in five years and a major step toward resolving the bankruptcy proceedings of the exchange. The repayment announcement has had an immediate effect on the Bitcoin market. The asset dropped under $60K, followed by the announcement. The decline reflects the market’s concern over potential selling pressure as large amounts of BTC are in circulation. 

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