TLDR
- Mark Karpelès proposed a hard fork to move 79,956 BTC without a private key.
- The stolen Bitcoin has remained unmoved for over 15 years.
- The plan requires all Bitcoin nodes to upgrade before activation.
- Critics warn the proposal may challenge Bitcoin’s immutability principle.
Mt. Gox’s former CEO has proposed a controversial hard fork to recover nearly 80,000 Bitcoin stolen more than a decade ago, reigniting debate over Bitcoin’s core principles. The plan would require a network-wide upgrade to make an invalid transaction valid and move the long-dormant funds to a recovery address, raising fresh questions about immutability, governance, and creditor repayments tied to the collapsed exchange.
Mt. Gox CEO proposes hard fork recovery plan
Mark Karpelès has submitted a proposal to modify Bitcoin’s consensus rules. The change would allow 79,956 Bitcoin to move to a recovery address.
He shared the proposal on GitHub and asked for community feedback. The Bitcoin was stolen from Mt. Gox and remains in a single wallet. The coins have not moved for more than 15 years.
Karpelès stated that the measure would require a hard fork. He wrote, “It makes a previously invalid transaction valid.” He added that all nodes must upgrade before activation.
He said the proposal aims to start discussion. He also said he is not trying to bypass the development process. The goal is to provide a concrete plan for review.
Trustee stance and distribution process
The Mt. Gox trustee, Nobuaki Kobayashi, oversees creditor repayments. Karpelès said the trustee declined on-chain recovery efforts. The trustee cited uncertainty about community support.
Karpelès wrote that this created a deadlock. He said the trustee will not act without certainty. He added that the community cannot assess the idea without a formal proposal.
If the coins become accessible, the trustee would manage distribution. Existing legal frameworks would apply to creditors. Repayments have already been ongoing under bankruptcy proceedings.
Karpelès noted that 12 years have passed since bankruptcy began. He described the unrecovered Bitcoin as “probably the last sore point on this whole case.”
Community reaction and debate
The proposal faced criticism on online forums. Many users argued that Bitcoin transactions should remain irreversible. They warned that altering consensus rules may set a precedent.
One forum member wrote that repeated recovery rules would “destroy the bitcoin concept in full.” Another user said Bitcoin should remain independent from law enforcement decisions.
Karpelès acknowledged these concerns. He argued that the case is unique due to public tracking and legal findings. He stated there is broad agreement that the address holds stolen funds.
Some creditors expressed support for recovery efforts. One creditor said he would seek his share if the coins ever move. He reported receiving about 15% of his original holdings.
Background on Mt. Gox collapse
Mt. Gox operated from 2010 to 2014. At its peak, it handled about 70% of global Bitcoin transactions. The exchange became a target for hackers.
Security weaknesses allowed unauthorized transfers in 2011. Operational errors also caused losses. In February 2014, reports claimed the company was insolvent.
Mt. Gox later announced the loss of 750,000 customer Bitcoin and 100,000 company Bitcoin. The exchange filed for bankruptcy protection in Tokyo. At that time, liabilities were about $65 million.
The stolen 79,956 Bitcoin remains visible on the blockchain. The wallet is publicly tracked and widely known. The proposed hard fork would allow movement without the private key.
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