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article imageBitcoin exchange MtGox files for bankruptcy

By Tim Sandle     Mar 4, 2014 in Business
MtGox, one of the largest Bitcoin exchanges, has filed for bankruptcy. Bitcoins provide a bank account to anyone with a mobile phone, no ID required. However, the freedom to trade seems to have led to a weakness in the systems of major bitcoin exchanges.
According to the BBC, MtGox filed for bankruptcy in Japan on Friday. A few days beforehand the site had closed down after losing an estimated 750,000 of its customers' bitcoins. The total losses amounted to around $500 million.
Mt. Gox is a Bitcoin exchange based in Tokyo, Japan. Mt. Gox was established in 2009 as a trading card exchange, but the company rebranded itself in 2010 as a Bitcoin business and was, for a time, the largest-volume Bitcoin exchange
Explaining why the collapse happened MtGox have said in a statement that There was a "high probability" that the bitcoins had been stolen through a bug in the firm's systems.
Mark Karpeles, the chief executive officer, is quoted by Wired as saying: "We had weaknesses in our system, and our bitcoins vanished. We’ve caused trouble and inconvenience to many people, and I feel deeply sorry for what has happened."
The Register has criticized the company for failing to answer customer questions about their bitcoins. Apparently the helpline has not been answered for several days.
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