Almost four years ago, withdrawals and trading were halted on the largest crypto exchange the world had ever seen – Mt.Gox. This was the beginning of a long and drawn out battle creditors to the exchange would face. For many years the funds stuck on the platform were presumed to be lost forever, but a recent civil rehabilitation has given creditors fresh hope. Now, anyone who lost funds when the platform ceased trading and withdrawals can file a legal claim. If the claimant can prove the funds held in the platform are rightfully theirs, then there is a good chance that they will see some form of compensation. This truly is great news for thousands of crypto traders that were left burnt by the fall of Mt.Gox.
Bitcoin Sell-Offs Damaging Markets
As a liquidation firm took over the exchange, they repeatedly sold-off large sums of BTC in order to compensate creditors who had demanded their funds back. This in turn – allegedly – caused uncertainty in the BTC markets and triggered excessive volatility. However, this new process will enable creditors who held BTC to receive their BTC back, rather than have it sold and returned in a fiat currency. This new approach will help to keep markets stable by not flooding markets with cheap BTC. Currently, creditors need to send their application via mail, but an online solution is being prepared.
Japan Learned its Lesson
Following the case of Mt.Gox, the Japanese financial services authority (JFSA) has cracked down on cryptocurrency companies and crimes. Following a number of hacks, the JFSA has stepped up its security measures and surveillance operations in a bid to deter cybercrime and theft of digital currencies. In addition to this, the JFSA also makes the results of any investigation into a cryptocurrency firm public. This helps those that wish to get into cryptos have a strong understanding of a company’s prior experiences, why they were investigated, and the outcome. By understanding what a bad crypto company looks like, the JFSA hopes that it can clean up the cryptocurrency landscape on Japanese shores.
Crypto Attacks Still Commonplace
Unfortunately, the crypto world is still largely unregulated, and this gives criminals the perfect opportunity to make a quick buck. Hackers have been using malware to infect computers and routers in order to turn machines around the globe into phantom crypto miners. In China, over 1 million machines were infected alone, and this yielded just over $2 million in various cryptos. In South America, a batch of routers were compromised and the figure of illegally mined cryptos is still rising.
It is essential that regulations are put in place to prevent this behavior, as it gives the crypto space a bad reputation. There are many ways to protect yourself from attacks, but we recommend using your common sense. If it is too good to be true, it usually is, don’t download software from an unverified source, never click the links in emails if you don’t know the sender, and keep your software up to date.
Putting Mt.Gox to Bed
With some luck, the creditors to Mt.Gox who thought their funds were lost forever can at least gain some closure and will hopefully be appropriately compensated. While creditors are likely irritated that they couldn’t sell their coins at December 2017 highs, their BTC is now worth significantly more than it was back in 2014. Mt.Gox triggered one of the darkest periods in cryptocurrency history, with this recent news, the trauma and after effects could finally be put to rest.