Mt Gox Faces New Challenges as Clients Report Hack Attempts

Mt Gox Faces New Challenges as Clients Report Hack Attempts

The notorious cryptocurrency exchange Mt Gox, which collapsed in 2014, is facing fresh turmoil as clients report attempted hacks on their accounts. These incidents have raised concerns among users who are still awaiting their long-overdue repayments.

Mt Gox Users Highlight Suspicious Activity on Reddit

Several Mt Gox clients have taken to Reddit to report unauthorized login attempts. One user, ezeuiqels, shared their experience on the r/mtgoxinsolvency subreddit, detailing suspicious emails received shortly after a legitimate communication from Mt. Gox.

The initial email informed them of a completed blockchain transfer of their Bitcoin (BTC) and Bitcoin Cash (BCH) repayments to Kraken. However, minutes later, they received five additional emails about unauthorized login attempts.

“I have [two-factor authentication] 2FA setup, and when I actually logged in (before I put the 2FA), I noticed that I received the email from Gox stating that I logged in (even before I used the 2FA), which leads me to think someone might have my password, but the 2FA prevented them from accessing the account. Unless, of course, this is some sort of fluke. Anyone has seen similar behavior?” ezeuiqels wrote.

Other users speculated that the notifications could be the result of a bug causing confirmation emails to be sent even if 2FA checks fail. Amid this confusion, Mt Gox’s rehabilitation claim filing system website is “temporarily down for maintenance,” further adding to creditors’ anxiety.

User nelbert69 shared their correspondence with Mt. Gox support regarding the login attempts. Support advised resetting passwords and changing contact email addresses if necessary. They noted that login notification emails are sent regardless of the correct password entry to alert users of any unauthorized attempts.

Repayment Process and Market Reactions

BeInCrypto reported that Mt. Gox began disbursing BTC and BCH to creditors earlier this month. Kraken, a cryptocurrency exchange, confirmed that it received funds from Mt. Gox trustees and will distribute the repayments within the next seven to fourteen days.

While the repayments offer relief, this news has caused concern in the crypto market about potential major sell-offs. However, a recent Reddit poll showed that many users intend to retain their Bitcoins, with some planning to hold onto their BTC while possibly selling their BCH.

Despite the fear, uncertainty, and doubt, analysts believe that the market might be overestimating the impact of the Mt. Gox distribution on Bitcoin’s selling pressure. Alex Thorn, Galaxy Digital’s head of research, noted that many of these creditors are long-term Bitcoiners.

They are early adopters “and have previously rejected aggressive offers to liquidate their claims for cash.” Additionally, the substantial capital gains on these assets would result in high taxes for those who choose to sell.

In summary, while Mt. Gox’s repayment process continues, the reported hack attempts and subsequent security concerns have added a new layer of anxiety for creditors. The market awaits further developments as these users navigate the repayment and security issues.