Mt Gox creditors report multiple brute-force login attempts

Users claiming to be Mt Gox creditors flooded the exchange’s subreddit with claims of multiple login attempts on their accounts by unknown hackers. These users also posted screenshots of emails as evidence of the login attempts.

Also Read: Mt Gox repayments to creditors may not affect Bitcoin as expected 

The Redditors emphasized that the perpetrators used brute-force techniques to try to access their accounts. Two-factor authentication security protocols likely prevented the attackers from accessing the creditors’ accounts. Other users suggested that the exchange’s website may have been experiencing technical issues that were prompting the login email notifications.

Creditors react to possible brute-force attacks

One user said that they had received twenty-two different notifications for account log-in and went ahead to ask if the exchange was under attack. The Redditor also confirmed that they were able to log in to the account successfully and that nothing had changed from their previous login.

Another Redditor responded to the post, stating that they received six login attempts. The Redditor highlighted that Mt Gox’s email system sends the “you have logged in” email before users feed in the 2FA code. 

He also explained the likelihood that hackers may be in possession of Mt Gox’s emails and may be trying to access the system using multiple passwords. The Redditor clarified that they contacted Mt Gox’s support, which instructed them to change their email and password.

“I contacted their support but they only suggest I change email and password. That seems like a weird respond to hundreds of affected users..”

–Reddit User

As alleged creditors remain in distress, Mt Gox’s rehabilitation claim filing website is defective and has written instructions urging visitors to visit at a later time due to ongoing maintenance. 

Mt Gox begins the payout process to creditors

MtGox customers have finally started receiving Bitcoins! After over 10 years I wasn't sure anymore if it'd finally happen, but here we are finally!! This has been a long journey and I'm happy to see we're finally getting there, only a bit more…

— Mark Karpelès (@MagicalTux) July 5, 2024

The brute force attempts follow the exchange’s initiative to pay investors who have been waiting for almost a decade since the exchange collapsed in 2014. On July 5th, the exchange’s trustee announced that the firm had begun paying its creditors in Bitcoin and Bitcoin Cash. 

The announcement detailed that only creditors who met the pre-selected requirements and conditions would receive the funds. These conditions highlighted in the announcement included account verification and a subscription to one of the selected exchanges to be used in the disbursement process.

Kraken, a crypto and derivatives exchange, is among the five designated crypto exchanges expected to facilitate the disbursement process. On July 16th, the exchange received more than 48,000 BTC, worth $3 billion at the time. 

Arkham Intelligence, a blockchain explorer, flagged the transaction on X, associating the recipient’s unlabeled address, “3JQie,” with Kraken Exchange. Kraken emailed creditors to confirm that the exchange had received funds from Mt Gox to facilitate the reimbursement process.

Nobuaki Kobayashi, Mt Gox Rehabilitation Trustee, issued a separate statement on July 16th, confirming that the trustee had commenced the payout process and had already paid over 13,000 creditors at the time. Japanese exchanges Bitbank and SBI VC Trade also received funds from the defunct exchange.