Key Takeaways
- Hackers have made an attempt to steal Bitcoins that were stolen from Mt.Gox crypto exchange about a decade ago.
- The hackers have chosen the dormant Bitcoin address holding 79,956 BTC that are worth over ~$8.69 billion.
- The attackers have used a sophisticated formula called OP_RETURN that takes the user to a fake webpage that entices the user into entering their details and using them to compromise a crypto wallet.
- This attack is a red flag as OP_RETURN requests are used to record data only but are now being used in creating phishing links.
Noticed by BitMEX Research, the hackers made a wild attempt in getting 79,956 Bitcoins by using a function called OP_RETURN. This function is used to embed important data on the blockchain.
BitMEX Research tweeted,
This signals that Bitcoin addresses that haven’t moved any funds for years could be at a greater risk as hackers eye on wallets that seem like they have been abandoned by the holder.
The Fall of Mt. Gox Cryptocurrency Exchange
Mt.Gox was a Japanese based crypto exchange that started operations in 2010. By 2014, the exchange was managing over 70% of Bitcoin transactions globally. Hackers stole approximately ~850,000 BTC over the years. The exchange eventually filed for bankruptcy in February, 2014.
The CEO of Mt.Gox, Mark Karpelès was accused of data falsification and embezzlement. He eventually served an extended prison sentence.
Mt.Gox Delayed Repayment To Creditors
The trustee of Mt. Gox exchange has postponed the repayment schedule to 31st October 2025. According to sources, this is the second time that the exchange has postponed the repayment date. The previous date to repay the creditors was scheduled for 31st October, 2024.
According to analysts, the rescheduling of payment to creditors has kept the market stable. If the repayments were made all at once then users would have flocked to the market to sell their BCH – Bitcoin Cash and BTC – Bitcoin which would have caused extreme price volatility.
The enforcement agency did manage to recover 140,000 Bitcoins that are now sitting into dormant wallets. While the hackers couldn’t steal Bitcoins, it is crucial that users keep an eye on their crypto holdings.
What Can You Do To Secure Your Crypto Holdings?
When signing into any wallet, web apps make sure you check the url and thoroughly look into the transactions you sign. If you find anything suspicious, make sure you secure your crypto and refrain from sharing any sensitive information online.
Ensure that you have your crypto funds in a wallet with some activity. Wallets that haven’t moved any funds are more susceptible to such hacks.
Users holding cryptocurrency in centralized exchanges can choose to move their funds into a self custodial wallet.
To learn more about self custody of crypto, read: Hot vs. Cold Wallet, What’s best for your Cryptos?
