Mt. Gox Founder Claims He Lost $50k in Exchange's Collapse

Jed McCaleb, the original founder of Mt. Gox, says he has lost the funds he held at the exchange.

AccessTimeIconMay 2, 2014 at 11:28 a.m. UTC
Updated Sep 11, 2021 at 10:43 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Jed McCaleb, the original founder of bitcoin exchange Mt. Gox, has said that he lost around $50,000 following the collapse of the exchange.

McCaleb pulled out of Mt. Gox and sold the bulk of the company to Mark Karpeles in 2011, but retained a 12% stake.

The $50,000, which he indicated was held in an online wallet in USD not bitcoins, was lost when the exchange went bankrupt after an alleged massive hack.

In an interview with Ars Technica, McCaleb said he is no longer involved with Mt. Gox, aside from his stake in the company.

Minority shareholder

Following his departure form the exchange, McCaleb went on to develop Ripple and earlier this year he announced a secret bitcoin-related project. For a while it seemed as if he would never cross paths with Karpeles nor Mt. Gox, but the unfolding disaster forced him to reconsider.

He told Ars Technica that recent legal disputes “brought him back” to Mt. Gox for the first time in years, and insisted that he had no involvement with the exchange since early 2011, other than the fact that he was a minority shareholder.

He never met Karpeles in person, McCaleb said, and never received any profits from him. He also later learned that Karpeles rewrote the entire Mt. Gox codebase in 2011, after taking over the company.

Back in the game?

McCaleb recently joined a group of creditors and investors headed by Sunlot Holdings, who aim to revive the troubled exchange and compensate creditors with a minority stake in the company.

While he did not offer a full explanation of his involvement in the revival plan, McCaleb's interests appear community-driven:

“When I first made Mt. Gox, I wanted to give the bitcoin community a place to gather. Although I am proud of how much the community has grown over the years, it saddens me to see the negative impact that Mt. Gox ended up having. Like many [others], I had money in Mt. Gox which I have also lost. The community deserves to find out the truth, and I am going to do what I can to help.”

However, the group's plans for Mt. Gox hit a snag yesterday. It remains unclear whether Sunlot and its supporters can make a compelling case for the revival and the settlement decision has been delayed, as Mt. Gox bankruptcy trustee Nobuaki Kobayashi appears to be pushing for liquidation.

The matter is not likely to be resolved until the summer, since most of the Japanese and US hearings have been scheduled for June and July.

Dollars image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.