Mt. Gox crumbles: all the news on Bitcoin's biggest bankruptcy scandal


Mt. Gox was once Bitcoin's biggest exchange. After first slipping in the ranks to several newcomers, the exchange shut down its website and announced that hundreds of millions of dollars worth of customers' bitcoins had been lost to a series of hackings that had gone unnoticed over several years. It's since filed for bankruptcy protection and began to search, with some success, for the missing currency. Customers are of course irate, and there's no indication that they'll be able to get back the money that they had stored with Mt. Gox.

11 updates and 1261 comments below.

Apr 16 1:51a

Mt. Gox abandons rebuilding plans and files for liquidation: WSJ

Mt. Gox, the embattled bitcoin exchange that filed for bankruptcy protection last month after losing almost half a billion dollars' worth of customers' virtual funds, is now reportedly asking a Tokyo court for permission to liquidate. According to The Wall Street Journal, the once leading exchange has abandoned its attempt to rebuild the business under bankruptcy protection due to the complexity and unrealistic nature of the plans.

One source says that Mt. Gox is still attempting to find a...

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Mar 21 10:33a

Mt. Gox finds over $100 million of customers' missing bitcoins

Troubled Bitcoin exchange Mt. Gox says that it located nearly a quarter of the around $485 million worth of missing bitcoins that it's been searching for since shutting down its site and filing for bankruptcy protection late last month. Mt. Gox, once Bitcoin's top exchange, previously chalked much of the currency's disappearance up to hackings over the course of several years, leading to some obvious questions about its accounting practices and how this could have gone unnoticed until...

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Mar 10 12:11a

Hackers claim bankrupt Mt. Gox still has customers' bitcoins

Tokyo-based Bitcoin exchange Mt. Gox lost $400 million worth of bitcoins in February. Its management said the amount was stolen after hackers exploited a transaction bug to divert the funds, but some of Mt. Gox's users are not so sure, suggesting instead that the exchange's owners pocketed the cash. Now, facing silence from those owners about the fate of the money and the methods by which 6 percent of all of the Bitcoin in the world could have been stolen, a group of hackers claims it has...

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Feb 28 5:06a

Bitcoin exchange Mt. Gox files for bankruptcy protection with $64 million in liabilities

After weeks of speculation over its financial health, the beleaguered Bitcoin exchange Mt. Gox has filed for bankruptcy protection. A company lawyer made the announcement at an impromptu news conference held at Tokyo District Court, according to The Wall Street Journal.

Feb 26 2:48p

Who stole $400 million from Mt. Gox?

Mt. Gox headquarters in Tokyo.

By now, Mt. Gox's fate is more or less sealed. The Bitcoin exchange probably won't be bailed out, CEO Mark Karpeles will move on, and the rest of the Bitcoin economy will move on as if this was just a bump in the road. But as the community recovers, it's left a single, thorny question unanswered: who took $400 million worth of bitcoins from Mt Gox's vault?

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The Mt. Gox fiasco won't kill Bitcoin

By Adrianne Jeffries and Russell Brandom

On Monday at around 11PM Mt. Gox, the largest exchange for trading the virtual currency Bitcoin, started disappearing piece by piece. First the homepage disappeared. Next the support page was pulled, followed by the press releases and then the API. "The requested page was not found on this server," customers were told when they tried to access their deposits. Users started to panic as they realized they might never get their bitcoins back.

It had...

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Feb 25 10:36p

Mt. Gox under investigation while its CEO sidesteps theft claims

The woeful situation for Bitcoin exchange Mt. Gox, which went offline earlier today, is seemingly no close to getting better. A pair of reports suggest that the company is now being investigated by prosecutors in the US as well as Japan, while another suggests that it could have indeed lost over 744,000 Bitcoins in a theft several years ago. Citing an unnamed source, The Wall Street Journal says federal prosecutors subpoenaed Mt. Gox sometime this month, asking it to preserve documents.


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Mt. Gox disappears as Bitcoin community goes into damage control mode

The embattled Bitcoin exchange Mt. Gox has gone offline, after several organizations from the Bitcoin community released a joint statement distancing themselves from the Tokyo company's troubles. Mt. Gox's website remains inaccessible, and the exchange appears to have deleted its entire Twitter feed.

The joint statement was originally billed as "regarding the insolvency of Mt. Gox," but was later updated to remove that language. A spokesman for the group told Recode, however, that "Mt. Gox...

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Feb 19 11:01a

'Mt. Gox, where is our money?'

Mt. Gox, once the largest Bitcoin exchange in the world, is operated from an unmarked Tokyo office block that offers no indication of its major, controversial influence on the digital currency's health. No indication, that is, unless you've walked past the headquarters in the past week, where protesters are attempting to draw unwelcome attention to the company's existence. "Mt. Gox: Where is our Money," reads one sign. "Mt. Gox: Are you solvent?" reads another. What's going on?

Feb 10 10:00a

Mt. Gox blames account freeze on Bitcoin-wide vulnerability

Bitcoin exchange Mt Gox first halted withdrawals two days ago, spurring a selling panic and furious speculation — but now, they've finally come clean about why. In a post this morning, the team said it noticed a currency-wide vulnerability called "transaction malleability" that would allow a user to alter transaction details to make it seem as if a transfer failed when it had actually succeeded. Since users regularly report to exchanges that particular transactions did not go through, it...

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Feb 07 11:53a

Mt. Gox suspends Bitcoin withdrawals, causes price to plunge

The popular Bitcoin exchange Mt. Gox is suspending withdrawals for an unstated period of time in order to perform maintenance. The exchange hopes to resolve withdrawal delays that some users have been complaining about for months now, which have allegedly held up transactions for weeks or longer. It began working to resolve the issues late last month — noting that only a "limited number of users and transactions" were impacted — but it now says that it's necessary to fully halt withdrawals in...

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Apr 01 11:30a

Barons of Bitcoin: the Tokyo-based powerhouse that controls the world's virtual money

Mt. Gox chief marketing officer Gonzague Gay-Bouchery, left; CEO Mark Karpeles, right.

The virtual currency Bitcoin isn’t backed by any assets or central authority. It’s only three years old and its exact origin is a mystery. And yet, for some reason, tens of thousands of people have determined that a single Bitcoin — essentially a unique sequence of letters and numbers — hit $105 US dollars earlier today, the most in its short history. At a time when the euro seems increasingly unstable,...

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