Mt. Gox, the infamous crypto exchange that collapsed in 2014, faces new turmoil as clients report hack attempts on their accounts.
These issues have raised concerns among users awaiting their long-overdue repayments.
Mt. Gox Users Report Suspicious Activity on Reddit
On Reddit, several Mt. Gox clients reported multiple unauthorized login attempt notifications. One user, ezeuiqels, shared their experience on the r/mtgoxinsolvency subreddit. They described 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) repayment to Kraken. However, they received five additional emails about unauthorized login attempts minutes later.
“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.
Read more: Top Crypto Bankruptcies: What You Need To Know
Other users suggested the notifications could stem from a bug where confirmation emails are sent even if 2FA checks fail. Amid this situation, the website of Mt. Gox’s rehabilitation claim filing system is “temporarily down for maintenance” at the time of writing. This bug, alongside the current website maintenance, has led to confusion and heightened anxiety among creditors.
User nelbert69 shared their correspondence with Mt. Gox support regarding the login attempts. Support advised resetting their password and changing their contact email address if necessary. They noted that login notification emails are sent regardless of the correct password entry to alert users of any unauthorized attempts.
BeInCrypto reported Mt. Gox began disbursing BTC and BCH to creditors earlier this month. Crypto exchange Kraken confirmed it received funds from Mt. Gox trustees and will distribute the repayments within the next seven to fourteen days.
Although the repayment provides relief, this news stirred the crypto market with fears of major sell-offs. However, a recent Reddit poll showed that many users intend to retain their Bitcoins. Some users plan to hold onto their BTC while possibly selling their BCH.
Read more: Who Owns the Most Bitcoin in 2024?
Despite the fear, uncertainty, and doubts, analysts believe that the market might overestimate the actual impact of the Mt. Gox distribution on Bitcoin’s selling pressure. According to Alex Thorn, Galaxy Digital’s head of research, many of these creditors are long-term Bitcoiners.
They are early adopters “and have previously rejected aggressive offers to liquidate their claims for cash.” Moreover, the huge capital gains on these assets would result in high taxes for those who decide to sell.
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