Mt. Gox Trustee Seeks Information on BTC-e Operator from the US

The trustee of the defunct crypto exchange Mt. Gox Mt. Gox Mt. Gox is the name of a Japan-based cryptocurrency exchange that was infamously hacked for 850,000 BTC worth roughly $450 million at the time in February of 2014. During July 2010 Mt. Gox formally launched Mt. Gox launched its exchange and price quoting service. It was subsequently sold to French developer Mark Karpelès in early 2011.Prior to its hacking, Mt. Gox suffered from other security vulnerabilities as early as June 2011. On 19 June, 2011, a security breach of the exchange caused the no Mt. Gox is the name of a Japan-based cryptocurrency exchange that was infamously hacked for 850,000 BTC worth roughly $450 million at the time in February of 2014. During July 2010 Mt. Gox formally launched Mt. Gox launched its exchange and price quoting service. It was subsequently sold to French developer Mark Karpelès in early 2011.Prior to its hacking, Mt. Gox suffered from other security vulnerabilities as early as June 2011. On 19 June, 2011, a security breach of the exchange caused the no Read this Term is seeking information about Alexander Vinnik, the alleged operator of BTC-e Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, from the US Department of Justice.

Announced at a creditors’ meeting on Tuesday, the rehabilitation trustee Nobuaki Kobayashi has contacted the US authority through a US law firm to gather the necessary information.

Vinnik is alleged to be the operator of the doomed crypto exchange BTC-e, which is believed to have played a major role in laundering the stolen funds from Mt. Gox. He was arrested in 2017 in Greece on request of the US authorities and currently imprisoned in the European country.

The US Department of Justice brought in a $100 million case against Vinnik for operating an unregistered money service business and failed to prevent money laundering.

Meanwhile, a Russian law firm recently approached the Mt. Gox creditors, claiming that it can recover up to an estimated 200,000 stolen tokens. The law firm also mentioned the role of BTC-e and is targeting the recipients of the funds from the exchanges like BTC-e and WEX.

However, in return, Zheleznikov and Partners is demanding 50 to 75 percent of the recovered amount from the creditors along with hourly fees for its services to handle the paperwork. This kept away the creditors of the bankrupt exchange from taking the service of the law firm.

Some discrepancies in numbers

Notably, there is a significant drop in the account balance of the rehabilitation trustee reported in the recent meeting’s report compared to the previous one. As of September 24, 2019, the trustee secured JPY 69,397,600,922, a figure JPY 155,000,000 lower than the balance of JPY 69,553,086,521 reported in March.

The report also detailed that by September 30, the rehabilitation trustee holds 141,686.35446516 BTC and 142,846.35166254 BCH and is trying to recover more digital assets belong to the creditors.

Meanwhile, a federal judge in Philadelphia recently declined to dismiss a proposed class-action suit which accused the exchange's former CEO Mark Karpeles of hiding issues before the collapse of the exchange.