54% of Cryptocurrency Exchanges Have Security Holes

Traders hope and expect the exchange they’re trading on takes security seriously. But while all crypto platforms pay lip service to good cybersecurity practices, many fail at even the most basic measures such as enforcing strong passwords. New research has found 54% of all cryptocurrency exchanges have poor security in at least one area, leaving them and their users vulnerable to attack.

Also read: Japanese Regulators Urgently Respond to Zaif’s Hack

Despite Hundreds of Millions of Dollars in Hacks, Many Exchanges Still Have Shoddy Security

The cryptocurrency landscape has changed significantly since Bitcoin’s earliest days, but one thing that’s remained constant is exchange breaches. From the Mt Gox days to last month’s Zaif hack, exchanges have been regularly surrendering their funds, despite the increasing value of crypto assets incentivizing them to up their opsec. A detailed new report from ICO Rating has revealed the extent of the lax security practices that pervade many exchanges, including several supposedly top-tier platforms.

The ICO listing and analysis site profiled 100 exchanges whose daily volume exceeds $1 million and found most of them wanting in one or more areas. For example:

  • 41% of exchanges allow passwords with fewer than 8 symbols
  • 37% of exchanges allow passwords with either digits or letters alone
  • 5% of exchanges allow the creation of accounts without email verification
  • 3% of exchanges lack 2FA
  • Only 46% of exchanges meet all four parameters
  • Just 4% of Exchanges Were Found to Have Best Practice for Domain Security

ICO Rating also considered registrar and domain security. Specifically, it looked for things such as a registry lock, preventing unauthorized changes to the domain registry, and DNSSEC, to prevent DNS cache poisoning, which has been an attack vector previously used to target platforms like Myetherwallet. Its findings were as follows:

  • Only 2% of exchanges use registry lock
  • Only 10% of exchanges use DNSSEC
  • Only 4 % of exchanges use best practice in 4 out of 5 of these areas

Coinbase and Kraken Score the Highest – Okcoin the Lowest

ICO Rating concludes by publishing a table rating all 100 exchanges profiled according to their aggregated security score. No exchange manages to score 90% or higher but Coinbase comes the closest, at 89/100, followed by Kraken at 80 and then Bitmex and Gopax in joint third (78). Other notable entries on the list are Cobinhood (8th), Ethfinex (12th), Bittrex (13th) and Binance (17th).

54% of Cryptocurrency Exchanges Have Security Holes
The top 10 exchanges for security according to ICO Rating

Bottom of the list is Okcoin.cn, which scores just 15/100. Other noteworthy exchanges that score poorly are Mercatox (25/100), the hacked Zaif (29/100), and Bithumb (34/100). While previous attempts have been made at rating the security practices of cryptocurrency exchanges, ICO Rating’s report is the most detailed yet. It is not comprehensive, for it does not detail such matters as dynamic IP verification, withdrawal checks, and other security measures. Nevertheless, it provides a snapshot of the health of crypto exchanges and shows there’s room for improvement across the board.

Which cryptocurrency exchanges do you think suffer from lax security? Let us know in the comments section below.

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$230 Million: Mt. Gox Trustee Confirms Past Bitcoin Sell-Off

Bitcoin investors who have dutifully monitored cryptocurrency wallets associated with defunct bitcoin exchange Mt. Gox for early warnings of a possible sell-off have been proven justified in their paranoia. Mt. Gox Trustee Confirms $230 Million Bitcoin Sale According to a document published on the Mt. Gox website, Nobuaki Kobayashi, the exchange operator’s trustee, sold approximately … Continued

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Crypto Bloodbath: Bitcoin and Ethereum Record Losses in $10 Billion Wipeout

Over the past 24 hours, the crypto market has experienced a large sell off as Bitcoin demonstrated a 3 percent drop in price, leading the market to drop $10 billion. Ethereum and EOS recorded the largest drop amongst major cryptocurrencies at 9 percent, while Bitcoin Cash, Litecoin, Monero, Cardano, and Dash demonstrated steep 7 percent … Continued

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This Dormant $720 Million Bitcoin Wallet Has Woken Up – But Who Owns It?

Once again in the world of cryptocurrency, we have a mystery on our hands. A $720 million sleeping giant has woken up after four years, with $100 million moved to Bitfinex and Binance over the course of ten days at the end of August. The bitcoin wallet contains 111,114 BTC or 0.52% of the total supply. The sudden … Continued

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Corporate Creditors Can Now File Claims for Mt Gox Restitution

Corporate Creditors Can Now File Claims for Mt Gox Restitution

This week the trustee in charge of the Mt Gox legal case has announced that corporate customers can now file rehabilitation claims for the October 22 deadline. The news follows the claim process that started for non-corporate customers on August 23.

Also read: Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules

Corporate Clients Can Now Apply for the Mt Gox Civil Rehabilitation Refund

Corporate Creditors Can Now File Claims for Mt Gox RestitutionCorporate creditors can now join the rest of the claimants filing for the new rehabilitation process for a chance to receive some of the funds that were lost during the Mt Gox scandal. The process is being overseen by Nobuaki Kobayashi, the rehabilitation trustee for the now-defunct exchange. The new process was invoked by a group of Mt Gox customers who were not pleased with the previous bankruptcy case. The group managed to move the case from a bankruptcy proceeding to a civil rehabilitation which could produce far better results for customers who lost funds. Last August Nobuaki Kobayashi opened up the option for non-corporate clients to begin the claim process.

On September 12 Nobuaki Kobayashi wrote on the Mt Gox website:  

We are pleased to announce that we have released an online rehabilitation claim filing system (the “System”) for corporate users who filed their proofs of bankruptcy claim by using the Mt Gox online bankruptcy filing system (in the bankruptcy proceedings) which allows corporate users to file their proofs of claim by online methods in connection with the civil rehabilitation proceedings.

New Mt Gox Claim Process Confusing to Some Claimants

On the subreddit r/mtgoxinsolvency, a forum focused on the Mt Gox insolvency case, it has been filled with people discussing the civil rehabilitation. A quick scan through the forums top posts shows many people have been filing claims and discussing the process in great detail. One big complaint was that some of the claimants are saying that a confirmation email is not being sent to the user saying the filing was complete. “There is no email confirmation, sadly,” explains one claimant. “How can it be confirmed the process was done correctly?” The subreddit moderators have also pinned a very informative post that gives a lot of information on the Mt Gox civil rehabilitation process.

Corporate Creditors Can Now File Claims for Mt Gox Restitution
Kolin Burges and the group ‘Mt Gox Protest’ have been fighting for Mt Gox customers for years. Burges is also well known for being pictured in many Mt Gox photos. 

Close to 800,000 BTC was lost during the Mt Gox fiasco, and after the site went dark some of those funds were found in cold storage. Mt Gox customers have been fighting for the remainder of those funds for years. Civil rehabilitation customers believe they are entitled to the fair market value of all the coins. This includes the BTC and the BCH tethered to the original addresses in contrast to the $500 per BTC promised to them during the bankruptcy case.

What do you think about the new Mt Gox civil rehabilitation process? Let us know what you think about this subject in the comment section below.

Images via Pixabay, Shutterstock, and the Mt Gox building in Japan. 

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Mt. Gox Begins Taking Claims from Corporate Bitcoin Creditors

Defunct bitcoin exchange Mt. Gox has opened up its online rehabilitation claim filing system to corporate creditors who were holding cryptocurrency funds on the platform when it went belly up in 2014. Mt. Gox rehabilitation trustee Nobuaki Kobayashi made the announcement in a document dated Sept. 12 and published on the Tokyo-based bitcoin exchange operator’s … Continued

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Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules

Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules

Since its implosion back in 2014, the Mt. Gox exchange hacks continue to loom large within the cryptocurrency ecosystem. The U.S. District Court for the Eastern District of Pennsylvania determined recently it does not have jurisdiction in a case involving Gox victims and a bank closely associated, in effect condemning victims to redress their grievances at the scene of the crime, Tokyo, Japan.

Also read: Philippines Okays PDAX Crypto Exchange

Gox Victims Must Take Up Claims in Japanese Courts

Gregory Pearce, according to court documents, picked the perfectly worst time to attempt withdrawing $5,900 through Mizuho Bank Ltd of Tokyo, Japan. The bank had the sole US market for Gox withdrawals and deposits at the time. Mizuho and Gox were both under suspicion for crimes, with the bank allegedly thought to be funding organized crime in various aspects. Gox, then processing something like 70% of the world’s bitcoin, was equally under investigation for suspected money laundering.

Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules

According to the court decision, “Mizuho facilitated international cash wire transfers from Mt. Gox users into the exchange and processed user requests to withdraw fiat currency from the exchange to their outside bank accounts,” the judge wrote. “When a user wished to deposit money in their Mt. Gox account, Mizuho would accept the payment that had been wired through the user’s outside banks and deposit the funds into Mt. Gox’s Mizuho account. Such wire transfers not only designated Mt. Gox as the beneficiary of the wire and Mizuho as the beneficiary’s bank, but also included the Mt. Gox user’s account number to which the funds were to be directed.” He continued:

Likewise, when a user wished to withdraw fiat currency from their Mt. Gox account, Mt. Gox would provide the request to Mizuho for processing. Such requests included the user’s banking information and the amount to be transferred. Mizuho would then transfer out the requested amount to the user’s outside bank.

Right around this exact time, exchange clients began agitating about not being able to withdraw from accounts. Either unknowingly or willingly, the bank continued to take deposits and collecting requisite fees up until Gox, and not the bank, blocked users. Mr. Pearce was among them. He received notice of a “delay” for international withdrawals.

Mizuho Off the Hook in US

The rest is cryptocurrency history, and the broader community has been fighting Gox and its creditors and receivers to get at funds owed. Mr. Pearce brought a class action against Mizuho, claiming it had balked on its contract. Mr. Pearce also brought claims of fraud and negligence against disgraced exchange CEO and president Mark Karpeles. Unfortunately for Mr. Pearce, he brought his suit in the wrong jurisdiction, Philadelphia.

Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules
Judge Robert F. Kelly

Mizuho quickly moved to have the claims dismissed on the grounds the bank is a Japanese company operating under Japanese law, and therefore a US court was clearly out of bounds. The bank doesn’t have a single employee in Philadelphia, much less a branch. Other than Mr. Pearce being a resident, the bank’s ties are exactly zero. Judge Robert F. Kelly agreed, granting the dismissal.

The court affirmed not having general jurisdiction in this matter, arguing Mr. Pearce did not establish “a prima facie case for specific jurisdiction over Mizuho.” Beyond even that, it wasn’t clear to Judge Kelly the bank had any idea Mr. Pearce was requesting withdrawal (the spark of the whole matter). What this might mean for US victims in the Gox case as a whole is unclear, going forward. At the very least, the US judicial system is of little use. It appears that for US victims they’ll have to either file in Tokyo proper or hitch their claims to a larger class action suit filed in Japan. 

Should US courts assist its citizens in their Gox claims? Let us know in the comments section below.

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$800M BTC Wallet Reactivates: Tens of Millions to Exchanges

$800M BTC Wallet Reactivates: Tens of Millions to Exchanges

Speculation has been swirling around a BTC wallet held dormant for over four years that is suddenly showing movement. That it contains something on the order of nearly one billion dollars worth of bitcoin core (BTC) has the ecosystem in both investigative mode and panic, as it could signal a giant dump at the very time the broader market appears to be recovering.

Also read: Square’s Big Week: Crypto Patent, Shares Leap, and Lightning Plug

$800 Million BTC Wallet Moves After Over 4 Years

“The original wallet owned 111,114.62 $BTC / $BCH , which is currently valuated ~ $844M (without taking in account other #Bitcoin forks),” reads the beginning of a crypto saga posted over three days. “Last movements on these subwallets are 4 years and 5 months old (March 9th, 2014). The chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.”

$800Mil Bitcoin BTC Wallet Reactivates: Tens of $Millions to Exchanges
Rare photograph of DPR

Simply delicious imaginings by Reddit poster sick_silk touch upon all the hot button, notorious BTC bagholders of yore: could it be Satoshi Nakamoto herself, back to take profits? How about the real Dread Pirate Roberts of Silk Road fame, busting an old stash open now that coasts have cleared? Or is it those dastardly Mt. Gox sorts, out to cash their lucre?

Theories abound as to just who or what moved bitcoin core from a four-year dormant virtual wallet containing more than 111,000 BTC, a value of right around $800 million at current prices. The movement was indeed uncovered by sub-reddit user sick_silk, and in a series of posts, attempts are made by both the poster and commentators to divine the wallet’s owner and motive(s).

$800Mil Bitcoin BTC Wallet Reactivates: Tens of $Millions to Exchanges

Dread Pirate Roberts, Satoshi, Gox

The wallet’s creation dates back to just before summer of 2014, and is now active or moving, and funds are heading to at least two exchanges. Over 11k BTC, about $80 million, made its way from the mysterious wallet to Bitfinex. A cool $32 million found its way to Binance.

By themselves, they’re not earth-shattering amounts. However, in an extended bear market, one lingering since late 2017, enthusiasts are wary of any news that might even hint at a potential glut or dump of BTC. For better or worse, as BTC moves, so does the crypto market as a whole.  

$800Mil Bitcoin BTC Wallet Reactivates: Tens of $Millions to Exchanges

In fact, many investors continue to smart after the Gox trustee sold off heavy amounts of BTC and BCH not too long ago, effectively tanking prices (a practice he’s since sworn off). In the background too is evergreen speculation about Satoshi’s real personage, with new allegations extending to the likelihood of it being more of a group: three men, and of the principals only one is alive with access to keys enabling him to claim the giant prize by around 2020.   

Less read crypto news outlets have widely settled on the rumor the wallet belongs to the long defunct Silk Road website in some fantastic way. They, and many others in the space, claim the US government is the wallet’s subsequent, post-conviction owner, and it is merely taking advantage of a small spike in prices.

Whatever the actual truth, and the posts themselves could be a major troll, it does make for some pretty interesting reading.     

What’s your theory about this wallet’s sudden activity? Share your thoughts in the comments section below!

Images courtesy of Shutterstock.

At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

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Storing a Lot of Bitcoins in One Wallet Is a Bad Idea

Keeping a Lot of Bitcoins in One Wallet Is a Bad Idea

Interest has piqued in a bitcoin wallet that’s lain dormant for four years. This week’s movement of the funds it contains, worth close to $850 million, has sparked intense debate over whose address it might be. Regardless of which whale holds the rights to it, the wallet’s very existence demonstrates the drawbacks of holding a lot of bitcoins in one address.

Also read: Payment Platform Bitpay Adds Bitcoin Cash Settlement Services

Mt Gox, Silk Road, and the Mystery of the Whale-Sized Wallet

Gawping at the fortunes of the super rich is a universal pastime with a storied past. In centuries gone by, the poor would watch in envy as the rich rattled past on their horse-drawn carriages clad in the finest scarlet robes. Today, the rich retain much of their fortune in digital form, and the closest we get to inspecting it is on a blockchain explorer. In many other respects though, little has changed. Observers have been transfixed, over the past 72 hours, by the movement of funds from a wallet containing 111,000 BTC and an identical number of BCH.

Storing a Lot of Bitcoins in One Wallet Is a Bad IdeaA lot of the attention has focused on the identity of the wallet’s owner, whose funds have been attributed to Silk Road or Mt Gox – the usual suspects in other words. Craig Wright also claimed ownership of the wallet in a lawsuit, though like many of his claims, this one has been granted no credence. The open nature of blockchains is an inherent part of their design; rich or poor, whale or minnow, everyone’s transactions are equally transparent in a block explorer. While democratic, this system does have its downsides, such as when wishing to move a large amount of bitcoin without attracting scrutiny.

Don’t Keep All Your Bitcoins in One Basket

Keeping a Lot of Bitcoins in One Wallet Is a Bad IdeaThe attention that the 111,000 BTC/BCH wallet has gathered highlights some of the pitfalls to keeping large quantities of coins in a single address. For one thing, the cost of failure is insanely high. Lose the private key and you’ve lost your fortune. From a risk management perspective then, it would seem sensible to break a large wallet down into smaller parts. From a privacy perspective, it also makes sense to move smaller quantities of coins at one time rather than attract attention by shifting six-figure amounts of bitcoin in one go.

Aside from pondering the mystery of the wallet’s owner, observers have been rapt in case a tranche of those coins is sent to an exchange wallet. In the past, EOS sending large quantities of ETH to Bitfinex, for example, has been enough to spark panic among holders fearing a major dump. Whales have probably got better things to do with their time than send hundreds of millions of dollars of bitcoin to an exchange wallet just to spook traders. It is a quirk of bitcoin’s design, however, that such an event is even possible. As of today, 83 wallets have received just under 1,000 BTC apiece as the wallet’s owner distributes their estate. This may be the last time their wealth is analyzed so openly by so many.

Who do you think the whale-sized wallet belongs to? Let us know in the comments section below.

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Bitcoin Exchange Mt Gox CEO Mark Karpeles Disputes U.S. Fraud Lawsuit

Mark Karpeles has urged a U.S. federal judge in the state of Illinois to dismiss a fraud lawsuit brought on by former customers of the now-defunct bitcoin exchange Mt. Gox, by insisting that the U.S. court has no personal jurisdiction over him in Japan. Representatives for Mark Karpeles told U.S. District Court Judge Gary Feinerman … Continued

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Bitcoin Lost: The Heroic and Maddening World of Crypto Wallet Recovery

Bitcoin Lost: The Heroic & Maddening World of Crypto Wallet Recovery

David Veksler of Walletrecovery.info has seen it all. News.Bitcoin.com caught up with the man many in the ecosystem call upon when the ‘you-know-what’ hits the fan. Lost seeds. Fires. Seemingly unrecoverable hard drives. Mr. Veksler views the impossible as an interesting problem, a puzzle to crack. As more folks onboard into cryptocurrency, and as prices inch up, there is a lot at stake when things go wrong with a wallet holding precious digital coins.

Also read: $1.1 Million Landmark Crypto Fraud Case Establishes CFTC Jurisdiction

Crypto Wallet Recovery Comes in Many Forms

News.bitcoin.com (BC): Let’s jump right into it. What are some instances where cryptocurrency recovery seemed doomed?

David Veksler (DV): The family of an early Bitcoin enthusiast who died in a farm accident asked me to recover his Bitcoin fortune. I had to [search] through the entirety of his digital life to find his Bitcoin wallet backup. Several of his laptops had been burned in a fire and the data on the drives had to be extracted from the burned out shells.

[In another instance a] customer forgot the password to his Doge wallet. All he remembered was that the password was a Doge meme.  I wrote a Doge meme generator which created a database of every possible Doge meme (over 8 million). This wasn’t especially hard, just a fun project.

Most cryptocurrencies based on Bitcoin Core use a BerkeleyDB database to store the wallet data. Many of my cases involve recovering private keys from a corrupt database. Sometimes my existing tools can directly export the keys from the database file. My most difficult recovery involved an especially corrupt Litecoin database. I had to compile a custom build of the BerkeleyDB tools to reconstruct the wallet enough for it to be salvaged.

Bitcoin Lost: The Heroic & Maddening World of Crypto Wallet Recovery
David Veksler often has to grapple with damaged parts.

BC: Wow. How did you get into cryptocurrency initially?

DV: In 2013, I partnered with a friend in China to build a Bitcoin exchange. I was invited to join this project based on my software architecture and stock market trading experience, not because of any particular interest in Bitcoin. (I had briefly tried Bitcoin mining back in 2010 but left my gaming desktop behind when I moved to China.) Building an exchange was a rapid and deep dive into the crypto community. At the peak of the bubble in December 2013, I attended a Bitcoin meetup in Shanghai. I met a number of “crypto celebrities” such as Roger Ver and was inspired by their belief in the world-changing potential of Bitcoin. There were in it for the long haul, and not just out to make a quick buck.

BC: So, then, what eventually drove you to start a wallet recovery business?

DV: Jeffrey Tucker and I have worked on various projects together since 2003. He forwarded a request for help to me because he knew that I have a strong background in crypto. I offered to recover my first wallet on a whim. Once my client had sent me their wallet, I was able to complete the recovery within 30 minutes and the client was very happy.

The idea to turn my experience into a business came from my wife. Most recoveries are technically straightforward – the most the most difficult part is gaining the customer’s trust. I knew that my personal brand and marketing skill would give me an edge here.  I also discovered that my competitors did not offer a solid legal contract or in-person meeting with customers, and I could offer additional assurance by being the first to offer both.

Bitcoin Lost: The Heroic & Maddening World of Crypto Wallet Recovery

More Secure Wallets Exist

BC: Is at least part of the problem in cases brought to you the fact wallets and general crypto software is just too clunky, not user-friendly enough? Do you think that’s going to change for the better?

DV: Yes, absolutely. We can view cryptocurrency development in three stages: discovery, infrastructure, and adoption. The discovery stage was from 2008-2013 when the community identified the basic concepts and tools of cryptocurrencies. The infrastructure stage started around the time that people realized the need to build alternatives to the failed Mt Gox exchange in 2013. Once the mature infrastructure is in place for cryptocurrencies, the stage will be set mass adoption. This infrastructure includes foolproof custody solutions for consumers, trusted intermediaries, and a diverse network of vendors who accept Bitcoin. That might drive me out of business, but on the other hand, when billions of people start using Bitcoin, some users will inevitably find ways to make mistakes.

BC: Can you recommend some wallets you find more secure than others?

DV: Yes.  Without a doubt, hardware wallets are far more secure than any software wallet. Both the Trezor and Ledger Nano are superior in safety to any software-based wallet. Generally, both these are fairly secure and foolproof to use. However, I have worked with many customers who nevertheless lost or had their coins stolen from these wallets, so it is important to use them properly and keep in mind that hardware wallets are only safe if used properly. One customer had printed out his seed words but was missing several due to incorrectly set page margins. Another customer’s funds had been stolen because the customer had entered his words into notepad on his computer to print them out, and promptly had his Bitcoin stolen due to a keylogger. A customer stored his recovery word card in his jeans. The card was destroyed when the jeans had been laundered, which he only discovered months later when updating his wallet firmware.

BC: I get the feeling you encounter many of the same scams over and over again. Can you reveal the most common scams to help readers steer clear?

DV: Fake mining contracts: “mining contracts” which offered fantastic payouts, such as doubling your money in 10 hours. After sending the “mining company” Bitcoin, they would either disappear or usually ask for more money to unlock funds. Some “mining services” send a public address as proof of payment, or hold “mining profits” in a web wallet which cannot be withdrawn from. [See screenshot below]

Bitcoin Lost: The Heroic & Maddening World of Crypto Wallet Recovery
Scam screenshot.

Malicious wallet software: wallet software that sends private keys to a central server, which steals the victim’s coins. “Electrum Pro” was a notorious example, as electrum.org is a real wallet, and electrum.com hosted a malicious wallet which stole victim’s Bitcoin.  

Fake forking services: these are services which promise to help users claim their forked Bitcoin Cash, Bitcoin Gold, Bitcoin Private, etc. Once the seed or private keys were entered, they disappear with the funds. Some customers had Bitcoin stolen from their hardware wallets because they did not realize that their recovery seed could be used to steal their Bitcoin.

Fraudulent exchanges: Many people are confused about where they store their legitimately purchased Bitcoin, or how Bitcoin is created and distributed. Malicious vendors take advantage of them by either claiming to sell cryptocurrency or simply announce that the recipient has coins which they forgot to claim. In some cases, they act like an advance-fee scam, where the victim has to pay upfront to collect their non-existent wallets. In other cases, the exchange takes payments (usually a credit card) for Bitcoin but makes withdrawing Bitcoin to a private wallet difficult or simply obscure. Many people are not aware of the importance of holding their own private keys, and leave their wallets with a third party for years until it disappears (as with Mt Gox).

Wallets for sale: scammers who sell cryptocurrency wallets with coins that are not spendable. Sometimes wallets are sold with the claim that the owners “forgot” the password for 5% of the value. (Many people assume that all cryptographic passwords can be broken if with enough skill, persistence, or hardware and ask me to do the hard work.) In other cases, wallets are sold to buyers who do not realize the proper way to transfer cryptocurrency to their personal address. Until very recently, Blockchain.info would reflect the watch-only (only the public address is stored) addresses in the total balance, which enabled the fraudulent sale of thousands of empty wallets with watch-only addresses.

Have you ever used a wallet recovery service? Share your thoughts in the comments section below.

Disclaimer: Bitcoin.com does not endorse nor support this product/service. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this interview.

Images via David Veksler.

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Mt. Gox Creditors Can File Rehabilitation Claims by October 22

Mt. Gox Creditors Can File Rehabilitation Claims by October 22

Victims of the Mt. Gox hack can now file rehabilitation claims under a new procedure announced by the trustee of the exchange, Nobuaki Kobayashi. Currently, the system is available only to individual claimants. October 22, 2018 is the filing deadline set by the Tokyo District Court.

Also read: Crypto Exchange Rents Pricey HK Offices, UAE Realtor Sells Homes for Crypto

Mt. Gox Trustee Announces Rehabilitation Proceedings

Mt. Gox Creditors Can File Rehabilitation Claims by October 22Crypto investors who lost funds in the Mt. Gox hack have been invited to file rehabilitation claims against the exchange for the return of cryptocurrency and money, according to a press release posted on its website. The claim procedures were announced and will be overseen by the court-appointed rehabilitation trustee, Nobuaki Kobayashi.

In accordance with the Civil Rehabilitation Act of Japan, the victims of the notorious hack can now submit proofs for rehabilitation, either online, or via mail to the office of the trustee in Tokyo if they are unable to use the recommended online method. Instructions for both the online and offline filings have been published as well. The announcement reads:

Users around the world can, without using time or money, easily participate in the civil rehabilitation proceedings through filing proofs of exchange-related rehabilitation claim in accordance with the Civil Rehabilitation Act of Japan and other laws and ordinances. Filing proofs of rehabilitation claim with the online method will benefit all interested parties.

Further details can be found in another document listing basic questions and answers titled “Q&As for Filing Proofs of Rehabilitation Claim.” The trustee has warned claimants that inquiries made directly to his office by email will not be answered. The preferred point of contact is the following phone number: +81-3-4588-3922, between 1:00 pm and 10:00 pm Japan time.

Filing System Intended Only for Individual Claimants

According to the notice, the filing process described is intended only for individual investors. Corporate creditors will have to file their claims at a later date, after a separate system is released. October 22, 2018 is the deadline set by the Tokyo District Court for filing proofs of rehabilitation claim. After that the right to claim might be lost. The planned date for the trustee to submit his approval or rejection to the court is January 24, 2019 but a definite date is yet to be determined.

When filing a claim, investors can also check the balances in their Mt. Gox accounts by signing in with their username or e-mail address and password. The maintained database reflects the conducted claim investigations. It’s been pointed out that additional functions will be released in the future. Further notifications will be made public via the platform’s website.

Mt. Gox Creditors Can File Rehabilitation Claims by October 22

The announcement follows the approval of a petition filed with the Tokyo District Court in November, 2017. In June of this year the court heard it and issued an order for the commencement of the civil rehabilitation which effectively stayed the bankruptcy proceedings. With the civil rehabilitation claims creditors will be able to receive compensation in bitcoin, their assets will not be converted to fiat currency.

In early August creditors agreed to be paid by the trustee 160,000 in BTC and 168,000 in BCH. Nobuaki Kobayashi had already liquidated 30,000 of the 200k bitcoins he controlled. Mt. Gox, once the largest and most popular bitcoin exchange, filed for bankruptcy protection in 2014 after losing 744,000 BTC in the hack.

What is your opinion about the procedures for compensating victims of the Mt. Gox hack? Share your thoughts on the recent developments in the comments section below.  

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Crowd Source or Complete Tasks With Bitcoin.com’s Bounty Hunter Portal

Crowd Source or Complete Tasks With Bitcoin.com's Bounty Hunter Portal

Ever since the Bitcoin network was launched the online world of digital bounty hunting began to prosper significantly, allowing individuals the ability to scour the web for jobs that pay in cryptocurrency. Just recently Bitcoin.com revamped its portal, Bitcoin Bounty Hunter, a service that allows anyone to anonymously crowd source bounties to complete tasks. Armchair detectives and online bounty hunters can make a lot of money as the current bounty list has close to $400K in digital asset rewards available.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Bitcoin Bounties Enables Economic Prosperity from Remote Locations All Around the World

Bitcoin is an incredible technology that has not only revolutionized money but the protocol has also transformed many other facets of the world’s economy and the way we interact within the online world. The concept of cryptocurrency bounty hunting had naturally emerged almost immediately after Satoshi launched the peer-to-peer currency and thousands of individuals have completed tasks over the years in order to grow their coin reserves.

Crowd Source or Complete Tasks With Bitcoin.com's Bounty Hunter Portal
At the time of writing the listed bounties on Bitcoin Bounty Hunter add up to close to $400K USD worth of bitcoin rewards.

Bitcoin.com is all about economic freedom and prosperity through free market capitalism, so we’ve launched our own bounty portal that allows anyone the ability to crowdsource bounties. Furthermore, highly skilled bounty hunters looking to complete online ventures can visit the Bitcoin Bounty Hunter page so they can earn a bunch of bitcoin cash.

Bitcoin Bounty Hunter: Close to $400K USD Worth of Cryptocurrencies Available Now

At the moment, Bitcoin Bounty Hunter has close to $400,000 USD worth of bitcoin cash (BCH) and bitcoin core (BTC) dispersed among six unsolved bounties. Some of the tasks include helping catch whoever is responsible for the missing 600,000 BTC from Mt Gox, find out who is responsible for the thousands of BTC stolen from Bitcoinica, help identify a Localbitcoins scammer named ‘Pablo777’ who stole 10 BTC from a trader, and a few more unsolved mysteries for online sleuths to solve.

Crowd Source or Complete Tasks With Bitcoin.com's Bounty Hunter Portal
Six bounties available today. All types of tasks can be crowd sourced like project building, design services, video work, writing tasks, software development, bug fixes, marketing needs, and really any undertaking you can think of that doesn’t involve violence or harassment. 

The bounties have full summaries of undertakings while also supplying important documents and clues. We originally started the bounty hunter page so we could help find the criminals who stole thousands of cryptocurrencies from innocent victims. But we have grown the service in order to include all kinds of tasks from within the crypto-community. If you have a task that you need accomplished take a minute and fill out the bounty request form.

Initiate All Types of Bounties or Help Complete Tasks in Order to Grow Your Coin Reserves

For instance, the types of bounties an individual or organization can initiate could include project building, design services, video work, writing tasks, software development, bug fixes, marketing needs, and really any undertaking that you are will to pay for with bitcoins. As mentioned above we allow bounties for a person who has committed a crime in which there is a victim, but we strictly prohibit any bounties involving violence or harassment.

There’s a lot of funds available for armchair detectives and online bounty hunters to complete already. Moreover, if a third party feels strongly about supporting a specific bounty they can anonymously contribute funds to the prize pool by donating to the associated bitcoin address tethered to each bounty.

So if you are in a position to fund tasks or you have the spare time to complete online bounties then you should check out our Bitcoin Bounty Hunter portal today!

What do you think about the Bitcoin Bounty Hunter page? Let us know your thoughts on this subject in the comment section below.

Images via Shutterstock, and Bitcoin Bounty Hunter.

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