TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Bitcoin bankruptcy: $425M missing

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Saturday, March 1, 2014, 12:01 a.m.
 

TOKYO — The Mt. Gox bitcoin exchange in Tokyo filed for bankruptcy protection on Friday and its chief executive said 850,000 bitcoins, worth several hundred million dollars, are unaccounted for.

The exchange's CEO Mark Karpeles appeared before Japanese TV news cameras, bowing deeply. He said a weakness in the exchange's systems was behind a massive loss of the virtual currency involving 750,000 bitcoins from users and 100,000 of the company's own bitcoins. That would amount to about $425 million at recent prices.

The online exchange's unplugging and accusations it had suffered a catastrophic theft have drawn renewed regulatory attention to a currency created in 2009 as a way to make transactions across borders without third parties such as banks.

It remains unclear if the missing bitcoins were stolen, voided by technological flaws or both.

“I am sorry for the troubles I have caused all the people,” Karpeles, a Frenchman, said in Japanese at a Tokyo court.

Karpeles said in a web post on Wednesday that he was working to resolve Mt. Gox's problems.

The loss is a setback to the currency's image because its boosters have promoted bitcoin's cryptography as protecting it from counterfeiting and theft.

Bitcoin proponents have insisted that Mt. Gox is an isolated case, caused by the company's technological failures,

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Hackers have wide reach
  2. Macy’s prepares outlet stores
  3. ‘Rank and yank’ doesn’t meet all expectations
  4. Shale gas violations down as DEP steps up inspections
  5. Fund fees within investor control
  6. Week yields lessons on China
  7. US stocks pare losses after 1,000-point Dow plunge
  8. Crash-prevention technology changes face of auto industry
  9. Allstate patents driver analysis
  10. S.W. Randall Toyes & Giftes of Pittsburgh’s owner finds joy in toys
  11. Alleged keyless ignition danger triggers lawsuit by consumers