Mt Gox Files for Bankruptcy, Lost $400 Millions Worth of Bitcoins

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Mt Gox Files for Bankruptcy!

According to court documents obtained by Bloomberg, Mt Gox files for bankruptcy in a Japanese court. Mt. Gox claimed to have lost over $400 millions worth of customers bitcoins and in dear need of protection. We reported early this week that Mt. Gox had closed down its doors, now the company is looking for a lifeline from the Japanese court system after lawsuits from customers started to pilling up.

“The company believes there is a high possibility that the Bitcoins were stolen,” Mt. Gox said in a statement earlier this week. The bankruptcy filing yesterday pretty much sealed the faith of the Tokyo-based bitcoin exchange company. After the turbulent month in which Mt. Gox saw his software hacked, suspended withdrawals and a complete shutdown, the writing is on the wall…this is it!

Those who have invested in the company are left with more questions than answers. The statement released by Mt. Gox last week did nothing to ease their worries and rightfully so.

“Mt. Gox is the only exchange that wasn’t backed by venture funds or institutional investors,” Micky Malka, the founder of Palo Alto, California-based Ribbit Capital and a Bitcoin investor, said in an interview. “It will take time for the rest of the Bitcoin ecosystem to prove that this is a bad apple and not a problem of the entire ecosystem.”

Mt Gox Files for Bankruptcy Protection

The bitcoin exchange company reported a revenue of 135 million yen ($1.33 million) in March of this year (2014). But according to court papers, Mt. Gox is in the hole by 2.7 billion yen with a lost of 750,000 customers’ bitcoins and 100,000 bitcoins belonging to the company’s inside investors. “We are in a situation close to what you would call Chapter 11 in the U.S.,” said Mark Karpeles, Mt. Gox CEO.

What do you think of Mt. Gox’s bankruptcy protection filing? Should they take some responsibilities for the lost? What do you think of the future of bitcoins as an alternative currency?

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Jonas Chokun

I fell in love with bitcoin about 2 years ago and have never looked back. Over a 2 year period, I learned as much as I can about this hot/new virtual currency and have bought, sold and traded a few bitcoins myself. Now, I want to share with you what I know! Enjoy.

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