Mt Gox in 2018 - Might You be Handling Stolen Bitcoin?

• Bitcoin price plummets as Bankruptcy Trustee decides to sell $400 million of recovered Mt Gox Bitcoin
• Existing non-Mt Gox Bitcoin holders could theoretically have Bitcoin confiscated one day, as Chainalysis co-founder admits that the location of stolen BTC is known to authorities
• Controversy surrounds the fact that no Mt Gox users who lost Bitcoin in 2014 hack will benefit significantly from the current sale

If you own any amount of Bitcoin, the chances are that you are familiar with the 2014 Mt Gox exchange hack. The biggest Bitcoin hack (so far) in history led to the loss of 850,000 Bitcoins valued (then) at $450 million. - Did you know, however, that in theory, you too could lose some (or all) of your Bitcoin, due to legal fallout from the Mt Gox hack?

Might You Own Stolen Mt Gox Bitcoin?

In recent days the Bitcoin price has plummeted. Rather, however, than investors losing faith in Bitcoin, prices are being driven down by Japanese attorney Nobuaki Kobayashi, deciding to sell $400 million worth of Bitcoin successfully recovered from Mt Gox.

Needless to say, $400 million of suddenly reappeared Mt Gox Bitcoin has severely impacted overall cryptocurrency market prices. As it happens, however, the Mt Gox fiasco might not be over just yet. This is due to the fact that in ongoing court proceedings, Bitcoin and cryptocurrency security specialists Chainalysis, have revealed that they know exactly where Bitcoin not recovered after the Mt Gox hack is located.

Why Does the Location of Bitcoin Stolen in 2014 Matter now in 2018?

Bitcoin is essentially just a virtual transaction ledger. This means that it is possible to track every Bitcoin through every transaction it is ever used in. - This and as a result, identify the present wallet address/location of any amount of Bitcoin.

Needless to say, the fact that the Bitcoin ledger can’t be altered, means that finding Bitcoin stolen from Mt Gox should be altogether easy. What is more, on June 8th, 2017, Bitcoin law enforcement specialists Chainalysis, admitted just this when questioned in court.

“Chainalysis was the official investigator in the Mt. Gox bankruptcy case and the destination of those coins is definitely known.”

As for why the present location of Mt Gox Bitcoin matters, the reason is simple. As announced by Mt Gox CEO Mark Karpeles when questioned on the matter, Karpeles stated that: “Due to ongoing law enforcement operations, I am unable to comment on this issue, publication of such information may compromise any future potential arrest(s).”

In short, anecdotal evidence would suggest that authorities don’t just know where stolen Mt Gox Bitcoin is located. As well as this, authorities do still plan to arrest those who masterminded the 2014 hack and presumably, confiscate stolen Bitcoin in the process.

You Likely Won’t be Arrested but the Bitcoin Mt Gox Debacle is Still Far From Over

Will authorities ever confiscate Mt Gox linked Bitcoin? Most likely, regular users wouldn’t be affected. Not that is, unless a Bitcoin investor purchased tainted coins immediately after the Mt Gox hack and has held coins since then. What investors do need to be wary of, however, is the fact that Mt Gox bankruptcy trustee Nobuaki Kobayashi, still has approximately 166,000 BTC, as well as an equivocal amount of Bitcoin Cash, Bitcoin Gold, and Bitcoin Private in his possession.

Could $400 Million of Surplus Bitcoin be just a Drop in the Ocean?

Cryptocurrency prices might be recovering after news of Nobuaki Kobayashi selling 35,841 Bitcoin and 34,000 Bitcoin Cash between September 2017 and February 2018. In reality, however, Kobayashi still controls almost 1% of the total Bitcoin global supply. What is more, that 1% will still require liquidating at some point. This being the case, future BTC price pull-backs are almost guaranteed. All that investors can do in the meantime, is hope that Kobayashi will liquidate Mt Gox recovered digital assets more responsibly in future.