BitGo selected as a designated custodian for Mt. Gox creditors

BitGo has been entrusted as one of the few places – and the only custodian – where Mt. Gox creditors can receive their long-awaited Bitcoin payout. It's also the best place for them to safeguard it, thanks to BitGo's outstanding security record, insurance coverage, and cold-storage trading.

New account sign ups were closed on April 6, 2023. Unfortunately at this time we are unable to accept new sign ups for Mt.Gox disbursements. Edited Feb 20, 2024.

Under the official process, creditors will be able to choose from designated distribution agents that have been carefully vetted by the Mt. Gox Trustee. By selecting BitGo, these creditors will be able to protect their funds in regulated cold storage, backed by up to $250M in insurance against theft, loss, or mismanagement of private keys. If eligible (by country, etc), creditors will also be able to trade directly from the safety of cold storage.

By contrast, Mt. Gox creditors may not get this level of protection from other partners, such as exchanges. For those who continue to believe in BTC and wish to HODL, trade, lend to earn interest, or borrow other assets with BTC as collateral, BitGo is the premier solution for their needs.

BitGo’s track record of security

While Mt. Gox and BitGo both emerged in the early days of crypto, our roads have diverged radically. Unlike Mt. Gox, BitGo has always emphasized customer safety above all else. To that end, we’ve created a system of technologies and processes to protect client funds, headlined by multi-signature security, which continues to be the leading model for protecting digital assets.

By creating multiple keys for each wallet and requiring two of the three keys to sign any transaction, our wallets prevent single sources of failure. This makes them exponentially harder to hack, since an attacker would have to compromise keys held in multiple locations.

The multi-sig model also creates distinct signatures on the blockchain, which provides asset holders with greater on-chain transparency. For each transaction, it’s clear to see exactly which keys were used.

Clients can also set up a number of policies on their wallets, such as velocity controls (limiting how much can be transferred in a given time period) or whitelisted addresses (limiting where the coins can be sent).

In addition to our battle-tested technology, BitGo serves as a “qualified custodian,” providing our cold, custodial wallets through our regulated trust entities. As a qualified custodian, we undergo regular audits and hold a fiduciary responsibility to protect our clients’ interests.

Our insurance coverage offers yet another layer of protection — something with which Mt. Gox creditors will be acutely aware. This policy applies to assets specifically held in our cold, custodial wallets.

How clients can use BitGo

Once onboarded and approved, creditors will receive their disbursement in a BitGo cold, custodial wallet. From there, they can mix-and-match between hot and cold wallets as desired.

In addition to safeguarding their funds, BitGo customers may also put their capital to work by trading, lending, staking, and accessing DeFi through our platform. This includes other coins and asset types beyond those they’re receiving from the Mt. Gox payout. BitGo is also the sole custodian for Wrapped Bitcoin (wBTC), which lets BTC holders participate in DeFi, as well.

(Note that eligibility for each of these services may differ from jurisdiction to jurisdiction, and may not be available everywhere).

Why select a custodian over an exchange

As Mt. Gox creditors know intimately, exchanges are often major targets for hacks. Moreover, most successful hacks have specifically compromised exchanges’ hot wallets, where the wallet had either a single key or where multiple keys were held in a single, accessible location.

By contrast, BitGo presents a dramatically safer option for creditors, thanks to our battle-tested, multi-signature security and our custodial wallet offering.

Moreover, creditors approved for BitGo Prime can trade directly from cold storage. In our model, we serve as the sole counterparty against a collection of exchanges and market makers in order to deliver a superior price. Customers can therefore trade — and trade efficiently — without sacrificing security.

By contrast, an investor looking for the best possible price will typically store funds across multiple exchanges and then pick the one offering the best terms at the moment they wish to trade. This quickly becomes capital-intensive, and subjects them to the risk of an exchange getting hacked (ie, like Mt. Gox).

With BitGo Prime, customers get the best of all worlds: The ability to trade, the ability to get the best price, and the ability to keep their funds safe throughout the entire process.

How the process works

Interested Mt. Gox creditors will need onboard through a dedicated Mt. Gox portal, which they can access through the Trustee’s website. They will need to supply the creditor ID number given to them by the Trustee, and must undergo a standard KYC process. Depending on their country and/or state, some services may not be available.

Note that this offering is only available to official Mt. Gox creditors designated by the Trustee. For more information, please contact mtgox@bitgo.com.

New account sign ups were closed on April 6, 2023. Unfortunately at this time we are unable to accept new sign ups for Mt.Gox disbursements. Edited Feb 20, 2024.