Thursday, June 27, 2019

JED MCCALEB SUED FOR THE MT. GOX HACKS

Jed McCaleb, a US-based programmer and businessman, is getting sued by two crypto investors: Joseph Jones and Peter Steinmetz.

In late 2010, Jed McCaleb created a Bitcoin exchange named MtGox.com based in Tokyo, Japan. Three years after its launch this exchange was handling more than 70 percent of Bitcoin transfers around the world. 

At the beginning of 2014, the exchanges shut down and filed for bankruptcy protection from creditors. Some months later, it was announced that nearly 850,000 BTCs were stolen from Mt. Gox. 200,000 of the missing coins were found since then. Jed McCaleb later went to become one of the founders of the Stellar Development Foundation.

Jones and Steinmetz accused Jed McCaleb of careless management of Mt. Gox before it was bought by Mark Karpeles. They claim that this resulted in the theft of Bitcoins, which at the time were valued at $400 million. 

“It was declared that Jed McCaleb had been informed about security concerns during the first year and instead of dealing with these issues, he decided to sell a major portion of his interest and tried to disguise security issues failing to inform users about them.”

Jed McCaleb assured investors that the platform was secure.

‘Jones and Steinmetz were informed that McCaleb, along with Karpeles, planned to conceal the theft of crypto coins. In 2011, around 80,000 crypto-assets were stolen. These and so many more Bitcoins were stolen and never restored by Mt. Gox.”

 Jones and Steinmetz lost respectively 1,900 and 43,000 Bitcoins that at today’s rate are worth $24 and $537,5 million. Both of them are still trying to return their lost Bitcoins.

 

The post JED MCCALEB SUED FOR THE MT. GOX HACKS appeared first on Bitcoin News.



from Bitcoin News https://www.cryptocynews.com/jed-mccaleb-sued-for-mt-gox-hack/
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