Rebirth of England.

Chapter 801 Distributed Foundation
"I know that the Japanese company Tibanne also wants to buy your website, and their offer is higher..."

Rami didn't care about Jed's attitude. He said calmly:

“But if I’m not mistaken, I’m afraid you didn’t mention 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…”

Hearing what Rami said, Jed's face changed, but he still pretended to be calm and said:
“This is totally untrue. Mt. Gox’s operations are normal and developing rapidly…”

"If this is really the case, then you should have no objection to us kindly reminding Tibanne to pay attention to this possibility."

Jed took a deep breath and suddenly asked:
"That's what you did?"

"Do not……"

Rami seemed to have heard something funny:
"This is totally unnecessary, sir. If you know the background of Matrix Capital, you should know that for an investment of this size, we don't need to take legal risks to do this kind of thing... It's just that before the acquisition, a basic background check still needs to be done. It was at that time that we happened to discover this matter..."

In Barron’s previous life, the famous “Mentougou Incident” was something that no one could get around, including in transactions involving BitC.

At that time, Mt.Gox was already the world's largest BitC exchange, accounting for more than 80% of the global BitC trading share. Then in February 2014, Mt.Gox had withdrawal problems. After a period of time, Mt.Gox announced the suspension of all trading activities, and the Mt.Gox website was left with only a blank page.

According to a document circulating on the Internet at the time, Mt.Gox lost a total of nearly 85 BitCs, including 10 BitCs from the Mt.Gox platform itself and 744408 BitCs stolen by hackers over the years. 85 BitCs accounted for 7% of the total circulation at the time. Based on the average price of BitC of US$400 at the time, this wave of losses was approximately US$4.7 million.

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

On February 2014, 2, Mt. Gox filed for bankruptcy protection in Tokyo, and then on March 28, it filed for bankruptcy protection in the United States.

As for the remaining 20 BitCs frozen by Mt.Gox and other properties derived from them (later, BitC was forked into many other coins, which also have considerable value), no compensation plan for Mt.Gox users was finalized until Baron was reborn in his previous life. These BitCs have become the "Sword of Damocles" hanging over the price of the currency. After all, the total amount of 20 BitCs, once the plan is determined, will most likely be sold for compensation, which will inevitably be a huge shock to the market.

Back to Rami, although the "Mt. Gox incident" happened three years later, in fact, the hacker theft of coins had already occurred before Jed sold Mt. Gox. Before he sold Mt. Gox, he had lost about 8 BitC...

In fact, at this time, exchanges including Mt.Gox were all privately founded. Compared with other financial systems, they were too small in scale, and naturally did a sloppy job in terms of security protection...

Therefore, this kind of hacker theft of coins really happens frequently. Even earlier than the "Mentougou Incident", in March and May 2012, hackers took advantage of security loopholes in the Bitcoinica exchange's network server to launch two attacks, stealing 3 bitcoins and eventually causing Bitcoinica to go bankrupt.

So, Rami took out a document and told Jed that when they were testing the security of the Mt. Gox website, the technicians found many loopholes in the website, and also found traces left by hackers - the transfer records from the official wallet of Mt. Gox and these traces can be matched one by one...

Under such circumstances, he finally persuaded the other party to sell Mt.Gox to Matrix Capital at a "reasonable" price, and Matrix Capital was willing to help him clean up the current "mess".

It is also because of the popularity of Mt.Gox among BitC enthusiasts that they decided to acquire the website instead of starting a new one. And Baron also hopes to avoid the "Mentougou Incident" that later caused great harm to BitC.

After all, only 8 BitCs were stolen from Mt.Gox, and at the current price of BitC, only a small amount of money is needed to fill the hole.

The reason why the Mt.Gox incident became more and more serious was that with the passage of time, the value of BitC changed dramatically, making it difficult to make up for these losses.

You should know that the 85 BitCs lost by Mt. Gox were worth $2014 million in 4.7, but ten years later, its peak value was close to $600 billion!

For now, given the scale of the funds involved, there is no need for Barron to personally oversee the acquisition of Mt.Gox.

But this is still very important for future layout.

For the time being, Mt.Gox will not undergo major changes. After the acquisition is completed, Mt.Gox's headquarters will be moved to Koloblita, and professional security teams will be formed in London and Hong Kong to eliminate website vulnerabilities and prevent hackers from stealing coins.

And later, Mt.Gox will also adopt the practice adopted by 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. This can greatly increase its security.

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

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 payments to Mt.Gox users to protect their rights and interests.

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

The BitC that Barron's people obtained through early mining is all under the control of this foundation. In order to avoid attracting attention, the Distributed Foundation currently holds approximately 50 BitC, which are scattered among dozens of cold wallets, and the number of BitC in each wallet will not exceed 1.

Moreover, for a considerable period of time afterwards, the BitCs they have will be in a "dormant" state.

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

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

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"...

(End of this chapter)