Mt. Gox Bitcoin exchange breaks silence, files for bankruptcy protection

[Shawn Knight]

Those behind troubled Bitcoin exchange Mt. Gox have finally broken their silence after abruptly shutting down shop earlier this week without explanation. During a news conference at the Tokyo District Court in Tokyo on Friday, the site’s French CEO Mark Karpeles announced they were filing for bankruptcy protection after losing nearly 750,000 of their customers’ Bitcoins and 100,000 of their own.

The total loss is just below $500 million at current exchange rates and represents around seven percent of the total number of Bitcoins in existence.

In speaking with reporters, Karpeles said technical issues allowed hackers to make fraudulent withdrawals earlier this month. He apologized for the mess and to Mt. Gox customers but said the Bitcoins have disappeared. He added that the Bitcoin industry is healthy and it will continue growing and that reducing the impact is the most important point.

Truth be told, Mt. Gox’s problems have been mounting for quite some time. According to the filing, the exchange had liabilities of 6.5 billion yen, or around $63.67 million – far more than the 3.84 billion yen in assets. We also learned the exchange had 127,000 creditors in bankruptcy, or in other words, a lot.

Moving forward, the exchange said it intends to try and continue to operate in order to pay back its creditors. Doing so might require the use of sponsors, however.

Given the mostly anonymous nature of Bitcoin, it’s unlikely that those who lost money on the exchange will ever get their coins back.

Permalink to story.

https://www.techspot.com/news/55850-mt-gox-bitcoin-exchange-breaks-silence-files-for-bankruptcy-protection.html

 

[Kibaruk]

Well... he is sorry after all, we should just let it go...........

 

[Guest]

Still looking at graphs and surprisingly, not any major krach...
People still buy bitcoins even if thousands owners lost theirs.

 

[Raoul Duke]

Unless he has them, or the ability to repay them, what can you really do? Being a currency with an unusual status, who knows what disclaimer there is for using the exchange or what the legal status is.

 

[Ranger12]

Still looking at graphs and surprisingly, not any major krach...
People still buy bitcoins even if thousands owners lost theirs.

I'm surprised as well. I guess the point is that the bitcoins protocol wasn't compromised. It's the "bank" that was compromised. The bank being the weaker link in this case.

 

[Gars]

I'm not
the protocol is strong and wealthy
the problem is settled much far ago
its called "Magic:The Gathering - eXchange "

WoW is next

 

[Holotus]

These are the growing pains of cryptocurrencies. This is not the end of bitcoin; but rather these events will make the currency stronger in the long term.

 

[Raoul Duke]

This is not the end of bitcoin; but rather these events will make the currency stronger in the long term.

yes, like the US Dollar gets better with time, like a fine wine

 

[Guest]

Any of y'all want to paint my fence? I'll give you 100 pogs.

 

[Jad Chaar]

Wow that is a huge amount of bitcoins lost. Shame.

 

[captaincranky]

Wow that is a huge amount of bitcoins lost. Shame.

Or at least it would be, if they ever, "existed", in the first place.

Yeah, yeah I know, I'm old, and I still cling to "old" ways and concepts. Pay me no mind.

yes, like the US Dollar gets better with time, like a fine wine

Good one!

 

[WithoutAnyMilk]

yes, like the US Dollar gets better with time, like a fine wine

Please tell me you're joking. o.O

 

[captaincranky]

yes, like the US Dollar gets better with time, like a fine wine

Please tell me you're joking. o.O

Dude, you can't tell that's blatant sarcasm?

Or is it that I can't tell you're being sarcastic?

 

[rub900]

Wow the kids come out to play. Or a bunch of hackers and drug dealers.

 

[Raoul Duke]

yes, like the US Dollar gets better with time, like a fine wine

Please tell me you're joking. o.O

Used to be a time when the US Dollar was the most valued currency in the world. You could land by parachute almost anywhere on the planet and if you had USD you were o.k. Now.....can't find the words to describe the kind of decline

 

[treetops]

You think the 1% would let you make a new currency?

 

[captaincranky]

Wow the kids come out to play. Or a bunch of hackers and drug dealers.

Well that sure moved the thread along, didn't it?

I'd say it isn't funny, or on topic, just snide, But what would I know, I'm a child, and hacker, and a drug dealer all rolled into one....

Did you get the pun about "rolled"?

You think the 1% would let you make a new currency?

The trouble with Bitcoin, and/or any other type of ostensibly "global currency", is that they don't work. The issues with the European Union, and spendthrift Greece, should be a testimonial to that.

All the internet whizzes, and the likes of Steve Jobs, and Bill Gates, have all become billionaires, (or "1 percent-ers, if you prefer), using the existing currencies of the realm(s).

So, a crypto-currency agenda, pushed forward by a bunch of internet malcontents, is likely to meet the same fate as Esperanto.

What many of the whimpering ideologues need, is more talent, some decent ideas, and an improved work ethic, rather than an Easter egg hunt through the hard drives of the world, for whatever stupid bits God knows who put there.

Like the TV commercial says, "Amazon, (etcetera), started in a garage. And so many have succeeded, beyond their wildest dreams, within the framework of existing monies, existing banks, existing tax codes, et al..

If you are correct, and speculating in some bull s*** play money scheme makes you rich, you'll be no better than the bankers, and stock brokers, you're always railing about. And a lot of good people, may be ripped off in the process.

 

[Raoul Duke]

So, a crypto-currency agenda, pushed forward by a bunch of internet malcontents, is likely to meet the same fate as Esperanto.

If you are correct, and speculating in some bull s*** play money scheme makes you rich, you'll be no better than the bankers, and stock brokers, you're always railing about. And a lot of good people, may be ripped off in the process.

Completely agree, it been a long time since I thought about Esperanto. All you young chillun that are saying Esperanto, WTF?, google is your friend (perhaps one of the few times it may be so)

 

[treetops]

Well that sure moved the thread along, didn't it?

I'd say it isn't funny, or on topic, just snide, But what would I know, I'm a child, and hacker, and a drug dealer all rolled into one....

Did you get the pun about "rolled"?
The trouble with Bitcoin, and/or any other type of ostensibly "global currency", is that they don't work. The issues with the European Union, and spendthrift Greece, should be a testimonial to that.

All the internet whizzes, and the likes of Steve Jobs, and Bill Gates, have all become billionaires, (or "1 percent-ers, if you prefer), using the existing currencies of the realm(s).

So, a crypto-currency agenda, pushed forward by a bunch of internet malcontents, is likely to meet the same fate as Esperanto.

What many of the whimpering ideologues need, is more talent, some decent ideas, and an improved work ethic, rather than an Easter egg hunt through the hard drives of the world, for whatever stupid bits God knows who put there.

Like the TV commercial says, "Amazon, (etcetera), started in a garage. And so many have succeeded, beyond their wildest dreams, within the framework of existing monies, existing banks, existing tax codes, et al..

If you are correct, and speculating in some bull s*** play money scheme makes you rich, you'll be no better than the bankers, and stock brokers, you're always railing about. And a lot of good people, may be ripped off in the process.

Now when a new online currency comes up they will briefly mention it on the news and reference bitcoin smugly. A pretty awesome turn of events for country founded currency. I've always said bitcoins were worthless, they don't even have imagined credit backing up the pixels.

Call me paranoid but I suspect either bitcoin was in on it for an ungodly sum of money or the banks just flexed on bitcoin.

p.s. I am not a 1%er new age hippy, they lack clear goals.

 

[captaincranky]

Call me paranoid but I suspect either bitcoin was in on it for an ungodly sum of money or the banks just flexed on bitcoin.

p.s. I am not a 1%er new age hippy, they lack clear goals.

I misinterpreted the intent of your original post and beliefs, please accept my apologies for that.

However, my rant against bitcoin, and the ability to succeed within the current monetary system "stands". But with the proviso, "to whom it may concern".

From what I can gather, paranoia and rumor, is causing many people histrionic fits, and they are being herded unwittingly, to online currency schemes.

Like I constantly find my self saying, the stock markets represent corporations which have tangible, physical, holdings. If I want to wipe a Bitcoin holder out, all I need to do it click on, "reformat".