Where did Mt. Gox's missing bitcoins go?
Investors were left millions of dollars out of pocket when Mt. Gox died, but was the exchange's hoard of virtual currency long gone before the abrupt closure?
According to a new analysis and results of an investigation conducted by WizSec, Mt. Gox's stolen bitcoin reserves -- worth over $300 million at the time's trading rates -- were taken from the virtual currency exchange's hot wallet systematically over time. However, the theft did not take place in 2014; rather, WizSec lead investigator Kim Nilsson alleges that the funds were taken from late 2011 onwards.
The bitcoin security specialist firm says "most or all" of the missing bitcoins were stolen over time, leaving Mt. Gox "knowingly or not" working on a fractional reserve -- which was basically depleted by 2013.
