Chapter 801 Distributed Foundation

"I know that Tibanne Company of Japan also wants to buy your website, and their bid is higher..."

Lamy didn't care about Jade's attitude. He calmly said:

"But if my guess is correct, I'm afraid you didn't talk about some of the security vulnerabilities of Mt.Gox when you contacted this company, right? It's even possible that Mt.Gox has already had its coins stolen. Something happened..."

Hearing Lamy's words, Jade's expression changed, but he still pretended to be calm and said:

"This is completely untrue. Mt. Gox's operating conditions are very normal and it is developing rapidly..."

"If this is really the case, then you should not object to us kindly reminding Tibanne Company to pay attention to this possibility."

Jade took a deep breath and suddenly asked:

"Did you do that?"

"No……"

Lamy seemed to have heard something funny:

"This is completely unnecessary, sir. If you can understand the background of our Matrix Capital, you should know that for an investment of this scale, we do not need to take legal risks to do such a thing... It is just in the acquisition Before, basic background checks still needed to be done, and it was at that time that we happened to discover this matter..."

In Barron's previous life, in transactions including BitC, no one could get around the famous "Mentougou Incident".

At that time, Mt.Gox was already the world's largest BitC exchange, accounting for more than 80% of the world's BitC trading share. Then in February 2014, Mt.Gox had a withdrawal problem. After a period of time, Mt.Gox announced that it would suspend all trading activities. , the Mt.Gox website leaves only a blank page.

According to a document circulated on the Internet at the time, Mt.Gox lost a total of nearly 850,000 BitCs, including 100,000 BitCs from the Mt.Gox platform itself, and 744,408 BitCs stolen by hackers over the years. 850,000 BitCs accounted for 850,000 BitCs in circulation at the time. 7% of the total amount - based on the average price of BitC of US$400 at the time, this wave of losses was approximately US$470 million.

At that time, Mt.Gox had been sold by Jade, and the owner at the time was Marc Capelles, a BitC enthusiast from France.

On February 28, 2014, Mt. Gox filed for bankruptcy protection in Tokyo, and then on March 9, it filed for bankruptcy protection in the United States.

The remaining 200,000 frozen BitC coins in Mt. Gox have been derived from other properties (later forked through BitC, there are various other coins, which are also of considerable value), until the time of Barron's rebirth in his previous life. No compensation plan for Mt. Gox users has been finalized. These BitCs have also become the "Sword of Damocles" hanging above their currency prices. After all, the total amount of 200,000 BitCs will be very high once the plan is finalized. There may be compensation for the sale, which must be a huge shock to the market.

Back to Lamy, although the "Mentougou Incident" happened three years later, in fact, before Jed sold Mt. Gox, hackers had already stolen money. About 80,000 BitC were lost…

In fact, at this time, exchanges including Mt. Gox were all privately established. Compared with other financial systems, their scale was too small, and their security protection was naturally so-so...

Therefore, this kind of hacker theft of coins really happens frequently - when the "Mentougou Incident" broke out earlier, in March and May 2012, hackers took advantage of the vulnerability in the security measures of the Bitcoin exchange network server to conduct two separate attacks. The attack resulted in the theft of 61,000 Bitcoins, which eventually led to the bankruptcy of Bitcoinica.

So, when Lamy took out a document and told Jed that when they were conducting security checks on the Mt. Gox website, the technicians discovered many loopholes in the website, and also found traces left by hackers. ——Their transfer records from Mt. Gox’s official wallet can be matched one-to-one with these traces...

In this case, he finally convinced the other party to sell Mt. Gox to Matrix Capital at a "reasonable" price, and Mt. Gox Capital was willing to help him clean up the current "mess."

It is also because of Mt.Gox’s current popularity among BitC enthusiasts that they decided to acquire this website instead of starting a new one.

And Barron also hopes to avoid the "Mentougou Incident" that later caused great harm to BitC.

After all, only 80,000 BitCs have been stolen from Mt. Gox, and at the current price of BitCs, only a small amount of money is needed to make up for this hole.

The reason why the Mt. Gox incident got bigger and bigger later was because as time passed, the value of BitC changed drastically, making these losses difficult to make up for.

You must know that the 850,000 BitC lost by Mt. Gox was already worth US$470 million in 2014, but ten years later, its highest value was close to US$60 billion!

For now, there is no need for Barron to personally intervene in the acquisition of Mt. Gox in terms of the scale of funds.

But this is still very important for future layout.

For the time being, Mt.Gox will not change much. After the acquisition is completed, Mt.Gox's headquarters will be moved to Koloblita, and professional security teams will be set up in London and China HK to eliminate website loopholes and prevent hackers from stealing coins.

And later, Mt.Gox will also adopt the practice of various exchanges later - storing most of the BitC assets in a "cold wallet" that is physically isolated from the network, and only storing a small amount of BitC for daily circulation in a "hot wallet" that is connected to the Internet on a daily basis, which can greatly increase its security.

Even if it is occasionally hacked by a hacker, at most it will only lose a small amount of BitC and other assets in the hot wallet.

And in the future, they also plan to use part of the website's surplus to establish an "investor protection fund" to protect users' property - once an unexpected risk occurs, the fund will be used to make advance compensation to Mt.Gox users to protect their rights and interests.

In addition to acquiring Mt.Gox, an institution called Distributed Foundations was also established in Britta, the capital of Colo.

The BitC that Barron’s people obtained through early mining is under the control of this foundation. In order not to attract attention, the Distributed Foundation currently holds about 500,000 BitC, which are scattered among dozens of cold wallets, and the number of BitC in each wallet will not exceed 10,000.

And for a long time to come, the BitC they hold will be in a "dormant" state.

The private keys of these wallets are split and engraved on two separate stainless steel sheets, which are stored in the vault of the United Bank of Africa in Britta and the vault of Standard Chartered Bank in London.

In addition, the Distributed Foundation will continue to purchase relatively small amounts of BitC on the market and properly seal them.

In the future, I am afraid that in the eyes of many people, the BitC in these wallets will also be part of the "permanent loss"...