Mark Karpelès, former CEO of the collapsed Mt. Gox Bitcoin exchange, is seeking community support for a radical proposal to recover more than $5.2 billion in Bitcoin stolen over a decade ago.
Karpelès submitted a proposal to add a consensus rule allowing the 79,956 Bitcoin, which have been dormant for over 15 years, to be moved from their current wallet without the original private key. He argues that if recoverable, the existing trustee framework would ensure distribution to rightful owners.
He acknowledges this is a hard fork, a significant change requiring node upgrades. Karpelès states the proposal aims to initiate discussion, as the Mt. Gox trustee has declined on-chain recovery due to uncertainty about community adoption.
Critics argue the proposal risks Bitcoin's immutability and could set a dangerous precedent, leading to repeated calls for consensus rule changes after hacks. However, some creditors affected by the Mt. Gox bankruptcy support the idea, hoping to reclaim a share of the lost funds.
Mt. Gox was once the world's largest Bitcoin exchange, handling 70% of transactions before its collapse in 2014 due to security breaches and operational errors, resulting in the loss of nearly 850,000 Bitcoin.