Mt Gox Ex CEO Proposes Bitcoin Hard Fork to Recover $5.2B BTC

The former chief executive of Mt. Gox, Mark Karpelès, has proposed a Bitcoin hard fork to recover nearly $5.2 billion in stolen funds. The plan targets about 79,956 BTC linked to the exchange’s 2011 hack. The proposal has reopened debate about Bitcoin’s core rules and governance.

Source: Mempool

Mark Karpelès published the draft on GitHub on February 27, 2026. He asked the Bitcoin community to consider a one-time consensus change. The change would allow the locked coins to move without the original private key.

Mt Gox Ex-CEO Proposal Targets 2011 Hack Address

The draft focuses on a single address known as 1Feex…sb6uF. That wallet received nearly 80,000 BTC after Mt. Gox suffered a system breach in June 2011. The coins have not moved for more than 15 years.

Under current Bitcoin rules, only the holder of the private key can spend those funds. Karpelès proposed adding a special consensus rule for that address. The rule would allow spending the outputs using a signature from a designated recovery address.

The draft states that the recovered funds would enter the existing court-supervised rehabilitation process. Creditors would then receive distributions under Japan’s civil rehabilitation framework. Karpelès described the draft as “an attempt to start a discussion” about an exceptional case.

He also wrote that the change would apply only to that specific address. The rule would activate at a future block height if adopted by the network.

Hard Fork Mechanics and Network Risks

The proposal would require a coordinated hard fork. A hard fork changes consensus rules and makes previously invalid transactions valid. Node operators would need to upgrade before the activation block.

The draft acknowledges the risk of a chain split. Some network participants may refuse to adopt the change. That outcome could create two competing versions of Bitcoin.

Critics argue that altering ownership rules could weaken the network’s immutability. One forum user warned that special exceptions could invite similar requests after future hacks. Others questioned who would decide which cases qualify for protocol intervention.

Karpelès responded that this case is unique. He noted that the coins have remained inactive for 15 years. He also said law enforcement and many community members recognize the funds as stolen Mt. Gox assets.

Existing Mt Gox Repayments Continue

The 79,956 BTC referenced in the proposal are not part of current creditor repayments. After the 2014 collapse, about 200,000 BTC were recovered. Those coins came under the control of trustee Nobuaki Kobayashi.

Repayments began in mid-2024 under a court-approved plan. As of early 2026, the estate holds about 34,689 BTC in its wallets. As we reported, the trustee has extended the final repayment deadline to October 31, 2026.

Past wallet movements have often preceded distribution rounds. In November 2025, the trustee moved more than 10,000 BTC between wallets. Analysts viewed that activity as internal preparation rather than market sales.

Repayments occur through partner exchanges, including Kraken, Bitstamp, and BitGo. Creditors receive Bitcoin and Bitcoin Cash, and some also receive fiat in Japanese yen.

Mt. Gox once handled around 70% of global Bitcoin trading. The exchange collapsed in 2014 after losing about 750,000 customer Bitcoin. More than a decade later, the case continues to shape debates around Bitcoin governance and recovery efforts.