Bitcoin News: Mt. Gox Exchange Files for Bankruptcy

Hundreds of thousands of bitcoins are missing

   

Bitcoin News: Mt. Gox Exchange Files for Bankruptcy

It appears to be the end of the road for a troubled bitcoin exchange.

Bitcoins 300x168 Bitcoin News: Mt. Gox Exchange Files for Bankruptcy
Source: Flickr

On Friday, Japan-based Mt. Gox filed for bankruptcy protection. Appearing before Japanese media in Tokyo, Mt. Gox CEO Mark Karpeles apologized for “the troubles” he had caused Mt. Gox customers. Karpeles said that a vulnerability in the bitcoin exchange’s systems had led to the disappearance of 850,000 bitcoins, the Associated Press notes.

Bitcoins185 Bitcoin News: Mt. Gox Exchange Files for Bankruptcy
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At current a current trading price of about $500 per bitcoin, that would put Mt. Gox’s bitcoin losses at north of $400 million. No one yet knows if the bitcoins were stolen from Mt. Gox, or somehow lost due to technical problems.

Japanese financial authorities say that they have no regulatory authority over bitcoin exchanges.

Trouble at Mt. Gox surfaced earlier this month when the exchange halted bitcoin withdrawals from customer accounts. At the time, the bitcoin exchange attributed the move to a technical glitch in its software, insisting that it was only a temporary measure.

Other bitcoin exchanges have recently suffered a series of denial-of-service attacks.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/02/bitcoin-news-mt-gox-exchange-files-bankruptcy/.

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