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Mt.Gox’s founder was aware of security issues years before the collapse occured

Jed McCaleb Mt.Gox

According to a lawsuit filed against the founder of Mt.Gox, the man behind the exchange was well aware of the security issues plaguing the company as early as 2010, years before the exchange suffered a crippling hack attack that cost it more than 850,000 Bitcoin.

The CEO is being sued by two Ex-Mt.Gox traders, Joseph Jones and Peter Steinmetz, who are the ones accusing McCaleb of not doing anything about company security while being aware of the issues.

Furthermore, the traders have mentioned that McCaleb has manipulated the community by using the opportunity to sell his share of the company, years before he knew it may collapse one day.

Both Jones and Steinmetz claim to be experienced crypto traders but were still convinced by McCaleb back in 2011 when a smaller attack happened, targeting weak password accounts.

It needs to be outlined that both of the plaintiffs are claiming to have possessed thousands of BTC during Mt.Gox’s bankruptcy.

To be more specific, Jones is claiming ownership of nearly 2,000 BTC, worth $24 million with today’s prices, and Steinmetz is claiming ownership of 43,000 BTC, worth more than half a billion dollars at press time.

Both of the traders mentioned that, should they have known about the security issues, they’d never have even touched the Mt.Gox exchange.

After having tasted glory, Mt.Gox was quickly brought to its knees, and some of its associates are already behind bars. It may be a matter of just a few months or weeks before the whole truth is unearthed about what exactly happened in February 2014.

Giorgi Mikhelidze

Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

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