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One Bitcoin address may have sunk Mt. Gox

Mt. Gox's Mark Karpeles declared bankruptcy (in Japan) Friday, Feb. 28, 2014. In today's Examiner 'The Street's Market Report' video Ruben Ramirez addresses the Mt. Gox debacle. A fiasco via hacking may be the more correct term for the recent events at the techno currency online exchange. The fiasco is big news as it is being reported by media outlets (Feb. 28, 2014) like The NYT's DealB%k and USA Today. What do Bitcoin "investors" think of the goings on at Mt. Gox and other cryptocurrency exchanges? You may want to check the board at Bitcoin Forum.

Major Bitcoin exchange Mt. Gox is in bankruptcy.
Andrew Burton/Getty Images/Examiner;

Google featured a snippet from one slightly mean-spirited (but funny) comment on the board. Ruben (The Street) reported that prior to Mt. Gox filing for bankruptcy the exchange "lost" about 770,000 Bitcoins and an additional 100,000 Bitcoins of their own. Those are estimated figures. The dollar valuation for the loss is about "$473 million". Just where did those figures come from? On Feb. 25, 2014 a somewhat "mysterious" entry appeared on The Hacker News about a Bitcoin address. Quoting the entry "A Bitcoin address with 782,000 BTC moved through it". It was a link to a Blockchain Info address.

Some of the follow-up comments on the THN entry observe that the Bitcoin address "doesn't pass the smell test". The link to that Bitcoin address is still up on the Blockchain Info site and ends with the last 4 characters "3Tew". You can evaluate the sending Bitcoin addresses by using the Taint Analysis. There are currently seven addresses sending the Bitcoins to the huge 3Tew address. Today's address total is at 791,000 plus Bitcoins. Is this the address receiving/transferring Bitcoins from the presumed hacked Mt. Gox accounts? They can only be related by the amount of the transfers and proximity in time. No parties, guilty or innocent, are identifiable.

Are Mark and the rest of the good people at Mt. Gox addressing the 3Tew transfers and all others? Well, they may have to according to Reuters and WSJ - they have been subpoenaed by a federal prosecutor. The subpoena was issued on or about Feb. 26, 2014. They will likely have to address other international authorities over the Bitcoin fiasco - especially in Japan. Is Mt. Gox sunk and where are all those Bitcoins? Mt. Gox has left only a very limited amount of information on its inactive website.

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