The company's CEO Mark Karpeles says that Mt. Gox lost approximately 750,000 customer Bitcoins. February 28, 2014 5:24 AM PST Mt. Gox, the embattled Bitcoin exchange that fell into a state of disarray earlier this month following a security issue that prompted withdrawal fraud, has filed for bankruptcy protection. The exchange's CEO Mark Karpeles announced the news in Tokyo on Friday, saying that Mt. Gox lost nearly 750,000 customer Bitcoins, as well as 100,000 of the exchange's own Bitcoins. The total number of lost Bitcoins translates to nearly $500 million, the Wall Street Journal reported on Friday. Related stories Fed chief Yellen: No power to regulate Bitcoin Bitcoin exchanges reportedly served with subpoenas Sen. Manchin demands complete US ban on Bitcoin Mt. Gox CEO: I'm working to find fixes for our Bitcoin exchange Hey, Mt. Gox: I want my two dollars! (or my .02 bitcoin) The admission that so many Bitcoins were lost had been rumored all week, though Mt. Gox would not confirm the news. Due to the currency's encryption technology, it might be difficult, if not impossible, for the stolen Bitcoins to be restored to their owner's accounts, leaving people across the globe with significant losses. At its height, Mt. Gox was one of the most popular Bitcoin exchanges. It was often cited in news stories discussing the shocking rise of Bitcoin, which at one time, flirted with a $1,000 currency exchange. Mt. Gox's Karpeles acknowledged that the Bitcoins were stolen by virtue of a weakness in his company's system that allowed the attackers to slowly withdraw the currency. According to Karpeles' lawyer, Mt. Gox has $63.6 million in debt, and about half that in assets. Despite the bankruptcy protection, Karpeles would like to see Mt. Gox live on and come back, though it's not clear whether that will happen or if customers would come back and use the exchange. In the meantime, Mt. Gox has been shuttered.
The company's CEO Mark Karpeles says that Mt. Gox lost approximately 750,000 customer Bitcoins.
Mt. Gox, the embattled Bitcoin exchange that fell into a state of disarray earlier this month following a security issue that prompted withdrawal fraud, has filed for bankruptcy protection.
The exchange's CEO Mark Karpeles announced the news in Tokyo on Friday, saying that Mt. Gox lost nearly 750,000 customer Bitcoins, as well as 100,000 of the exchange's own Bitcoins. The total number of lost Bitcoins translates to nearly $500 million, the Wall Street Journal reported on Friday.
Related stories
- Fed chief Yellen: No power to regulate Bitcoin
- Bitcoin exchanges reportedly served with subpoenas
- Sen. Manchin demands complete US ban on Bitcoin
- Mt. Gox CEO: I'm working to find fixes for our Bitcoin exchange
- Hey, Mt. Gox: I want my two dollars! (or my .02 bitcoin)
The admission that so many Bitcoins were lost had been rumored all week, though Mt. Gox would not confirm the news. Due to the currency's encryption technology, it might be difficult, if not impossible, for the stolen Bitcoins to be restored to their owner's accounts, leaving people across the globe with significant losses.
At its height, Mt. Gox was one of the most popular Bitcoin exchanges. It was often cited in news stories discussing the shocking rise of Bitcoin, which at one time, flirted with a $1,000 currency exchange.
Mt. Gox's Karpeles acknowledged that the Bitcoins were stolen by virtue of a weakness in his company's system that allowed the attackers to slowly withdraw the currency.
According to Karpeles' lawyer, Mt. Gox has $63.6 million in debt, and about half that in assets. Despite the bankruptcy protection, Karpeles would like to see Mt. Gox live on and come back, though it's not clear whether that will happen or if customers would come back and use the exchange. In the meantime, Mt. Gox has been shuttered.
