ForexMinute.com – In a report published this Tuesday, Zurich-based Prof. Dr. Christian Decker and Roger Wattenhofer have denied transaction malleability to be the root cause of Mt. Gox Bankruptcy. The expert claims somehow thrashed the claims made by Mt. Gox representatives – including the exchange’s CEO Mark Kerpeles – who said that attackers used malleability attacks to freeze and drain their accounts.
Both Prof. Dr. Decker and Wattenhofer inspected the Bitcoin’s blockchain for over a year, and looked for the instances that suggest a potential transaction malleability attack. Prior to reaching any conclusion, the professors also offered readers an insight of such attacks, which they described as “the fact that the signatures that prove the ownership of Bitcoins being transferred in a transaction do not provide any integrity guarantee for the signatures themselves.” According to their report, there was no widespread use of transaction malleability attacks on Mt. Gox ultimately, despite of the fact they were attacked indeed.
They also concluded that only 1,811 Bitcoins were under attack when Mt. Gox shut down its website, leading to a halt in their withdrawing process. They also suggested that how the demised Japanese exchange clearly lied about losing 850,000 Bitcoins to the malleability attacks; contrary to a fact that says that there are a total of 302,000 Bitcoins that have ever been involved in malleability attacks.
“78.64% of these attacks were ineffective,” the report said. “As such, barely 386 Bitcoins could have been stolen using malleability attacks from Mt. Gox or from other businesses. Even if all of these attacks were targeted against Mt. Gox, Mt. Gox needs to explain the whereabouts of 849,600 Bitcoins.”
Mt. Gox’s Suspicious Role in Attacks
This surely has darkened the people’s perception over the alleged involvement of Mt. Gox in February’s hacking attacks. The reports are simply suggesting that how Mt. Gox has exaggerated the news, and has lied about their total number of lost Bitcoins.
And this is not the first time Mt. Gox is brought under the public’s scrutiny.
Earlier, the Japanese exchange was targeted by an anonymous hacker who trespassed into Mark Kerpeles’s blog and posted the inside details of Mt. Gox’s customers’ accounts, revealing that the Japanese exchange actually lied about their theft evaluations.
Few days later, Mt. Gox CEO informed of an unknown old wallet that had 20,000 Bitcoins in it. Dramatic isn’t it?
Meanwhile, the exchange has lately committed to provide full cooperation to the Tokyo police in the ongoing investigation. Let’s see where it takes them. We’ll keep you informed.
To contact the reporter of the story: Yashu Gola at email@example.com