Mt Gox, the infamous cryptocurrency exchange that collapsed in 2014, is facing renewed security threats as creditors report a surge in unauthorized login attempts. 

The incident has prompted concerns of a potential ‘brute-force’ attack targeting user accounts, leading to the exchange temporarily taking its website offline for maintenance.

The security scare unfolded when numerous creditors received multiple notifications of attempted logins to their Mt. Gox accounts. Redditors on the r/mtgoxinsolvency forum expressed alarm as accounts, protected by two-factor authentication (2FA), seemingly faced breach attempts. 

Reports indicated that while some users managed to prevent unauthorized access using 2FA, others encountered persistent login notifications without successful entry into their accounts.

“Just received 15 notifications for account log in… Is Mt. Gox under attack?” queried Redditor ovkovk in a widely circulated post, echoing the shared concerns of many affected users. 

Technical Glitch or Deliberate Attack?

Amidst the chaos, speculation arose regarding the origins and intentions behind the breach attempts. Some users attributed the incidents to technical glitches within Mt. Gox’s systems, while others voiced suspicions of a coordinated cyberattack aimed at compromising user data and potentially accessing Bitcoin holdings.

“It seems we are re-goxxed,” lamented a concerned Redditor, referencing the exchange’s troubled history and the lingering uncertainties faced by its creditors. 

Questions also surfaced regarding the timing of the security breach, coinciding closely with Mt. Gox’s recent movements of significant Bitcoin amounts for creditor repayments.

The security incident has not only rattled Mt. Gox creditors but also sparked concerns within the broader cryptocurrency community. Fear of potential data breaches and account compromises has cast a shadow over investor confidence.

Recently Indian exchange, WazirX, was hacked for $235 million, affecting many users.

Mt. Gox Redistribution

The recent news came amid the exchange’s efforts to redistribute Bitcoin holdings to its creditors, totaling nearly 140,000 Bitcoin valued at approximately $9 billion. Initial fears that creditors might flood the market with Bitcoin upon repayment have been tempered by a recent survey suggesting a more cautious approach among participants.

Survey Insights

A survey conducted on Reddit’s Mt. Gox forum revealed a surprising sentiment among creditors regarding their Bitcoin holdings. More than 55% of respondents indicated no intention to sell any of their redistributed Bitcoins immediately. 

This cautious stance contrasts sharply with earlier market expectations, where widespread sell-offs were anticipated following the exchange's repayment efforts. Less than 19% of participants expressed readiness to sell all of their new holdings, highlighting a conservative approach to managing their Bitcoin windfall.