MtGox bitcoin exchange reopens so users can see their loss

The collapsed bitcoin exchange now lets users log in so they can look at, but not touch, their balances.


MtGox, the defunct bitcoin exchange, has re-opened the ability to login to its site, but only to the extent of letting users see the balance in their wallets.

Since the site is openly insolvent, and reportedly holds 750,000 fewer bitcoins than it owes to customers, any balance displayed onscreen is unlikely to ever be returned to users.

The company is clear that the service is only being provided “for the convenience of all users”. It also notes that “confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure”, the equivalent of bankruptcy in Japan, where Mt Gox is based.

After staring longingly at the reminder that the bitcoins they once had are gone forever, former Mt Gox customers can join one of the many class-action lawsuits against the company. In the US, a lawsuit filed in February was recently amended to involve Mizuho Bank, the company’s Japanese bank, as well as the firm’s executives and its Japanese parent company Tibanne KK. MtGox is safe from such cases in America, where it has declared bankruptcy, but in Canada, the firm itself is the target of a lawsuit, along with Mark Karpeles and Jed McCaleb, its two major shareholders.

Failed Bitcoin exchange Mt. Gox is allowing users to log in to their accounts once again, nearly three weeks after it filed for bankruptcy protection.

Some users reported seeing accurate balances, but on various forums, users were, however, concerned that the exchange’s website had been hacked and the new login facility on the site may be a hoax.

“We believe this is an authentic notice on the website and we are confirming with the legal team,” a call center staffer said on Tuesday.

Another staffer had earlier said that she was unable to say whether the reactivated login was the result of an order by the Tokyo District Court, adding the database cannot be accessed while the case is being investigated by the court. Lawyers for Mt. Gox could not immediately be reached.

The notice on the website, which was said to have been posted Tuesday by the call center, invited users to log in to check their Bitcoin wallet balances. It’s the first access since the Tokyo-based exchange went offline Feb. 25 and later announced it had lost some 850,000 bitcoins.

Some users noted that the reopened access only confirms what they knew before the exchange’s meltdown and that their coins remain in limbo.

“The site shows the coins, but it indicates it has no real meaning with respect to claims,” said Aaron G., an investor who did not want his last name to be used. His balance indicates about 464 bitcoins (roughly $286,700 according to average bitcoin prices on other exchanges).

“So, just numbers on a screen—just as ‘real’ as they were before Gox went down,” he said in an email interview.

Aaron, who filed a fraud complaint against the exchange with Tokyo police, was referring to the legalese on the page citing Mt. Gox’s pending status under Japan’s Civil Rehabilitation Act.

“Please be aware that confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure and note that the balance amounts shown on this site should also not be considered an acknowledgment by MtGox Co., Ltd. of the amount of any rehabilitation claims of users,” the exchange said on its website.

“I can see the 10k Mtgox stole from me… hooray!” a Reddit user posted in reaction to the reactivation of the login.

The Mt. Gox website said it will post a method for filing claims as soon as it is in a position to do so, without providing details.

The move follows the exchange’s filing for bankruptcy protection in Tokyo District Court on Feb. 28 with liabilities of ¥6.5 billion ($63.6 million), when it said 750,000 of its customers’ bitcoins were missing, along with 100,000 of its own. Users were left wondering whether they will ever get their bitcoins back.

The rehabilitation procedure is one of several legal actions involving Mt. Gox and its parent company Tibanne, led by Mark Karpeles. Last week a U.S. district court judge ordered a freeze of the assets of Karpeles as well as Tibanne and Mt. Gox’s U.S. subsidiary amid allegations of fraud.

Gregory Greene filed the Chicago lawsuit against Mt. Gox on Feb. 27, alleging he lost around $25,000 worth of bitcoins in the exchange’s meltdown.

source: http://www.theguardian.com/technology/2014/mar/18/mtgox-bitcoin-exchange-reopens-so-users-can-stare-listlessly-at-their-loss & http://www.pcworld.com/article/2109240/after-bankruptcy-filings-fallen-mt-gox-exchange-lets-users-see-bitcoin-balances.html

MtGox bitcoin exchange reopens so users can see their loss