Possibility of Recovery of Lost $2 Billion in Mt. Gox Bitcoin Hack

Possibility of Recovery of Lost $2 Billion in Mt. Gox Bitcoin Hack

A Moscow-based law firm is offering an alternative resolution to the creditors of Mt Gox bitcoin exchange. On the other hand, another opportunity has been offered by ZP Legal of recovery of a quarter, which can be around 170,000 to 200,000 worth of $1.7 billion to $2 billion, of stolen 850,000 bitcoins. It can be rescued by taking legal action against Russian nationals as receiver of the stolen money.

A thought of Alexander Zheleznikov, the managing partner of ZP Legal, is that some portion of stolen money of from Mt Gox may have terminated up on another annihilated crypto exchange namely BTC-e. In that case, Russian national Alexander Vinnik, operator of BTC-e, being alleged get arrested in Greece and is now facing extradition to the U.S., Russia to face trial over money laundering charges.

They aim at representing the Mt Gox creditors and help them report to Russian Law Enforcement as the investigators could establish the connection between the stolen funds from Mt Gox, the operations of BTC-e and WEX, utilizing vinnik’s case.

Cross-border Proposition

The firm of Zheleznikov as well as Mt Gox creditors reached out to lawyers with the assistance of Russian embassy in Tokyo. A meeting was held with the lawyers for ZP and separately with the Mt Gox Legal insolvency lawyers. 

According to a source it came to knowledge that ZP Legal demanded to have recovered as much as $1 million of funds on behalf of an anonymous client of WEX. Zheleznikov said that his firm worked with two individuals whose money was frozen at WEX. The investigation process has been begun by WEX. Then a few people went to the firm with a view to compensating the WEX users’ losses.

Governing Expectancy

Recovery of up to 170,000-200,000 BTC is possible through an intimate fellowship with law enforcement which is act up to a document shared by Pag. Finding out involved individuals with the incidents is the responsibility of law enforcement. Clients can expect to have their balance in fiat. Just some funds will be recovered that a court will be able to confiscate.

The balance will be calculated on the basis of the current rate and BTC will be converted to hard currency. But the problem is that in Russia there is no obvious methodology for valuing cryptocurrency. Zheleznikov said they are not guaranteeing anything and they have certain legal skills and there are some existing laws.

Infamous Clientele

Since 2014, Zheleznikov has been safeguarding the Russian neo-Nazi Maxim Martsinkevich who is serving a 10-year term in Russian jail for striking individuals he and his partners accepted to be drug pushers. Zheleznikov has additionally safeguarded mainstream Russian journalist Anton Krasovsky and oligarch Konstantin Malofeev who is accepted to be a patron of the nonconformist powers that stood up to the Ukrainian armed force on the South East of Ukraine in 2014.

After the amount was stolen, Mt Gox overhang trading filed for bankruptcy protection and started liquidation proceedings. Creditors will have bitcoin instead of fiat sum as the exchange stepped up from bankruptcy proceeding to civil rehabilitation. But it is yet unclear that when the fund will be returned.  

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