Bitcoin exchange Mt. Gox goes offline amid serious trouble

By on February 25, 2014, 6:30 AM
website, bitcoin, cryptocurrency, mt gox

Update: Mt. Gox finally broke silence minutes ago with a short and vague statement about the sudden closure of its exchange: "In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly."

Original story below.

Major Bitcoin exchange Mt. Gox has been troubled in recent times, today going completely offline amid rumors of a possible acquisition or insolvency. Heading to their website at mtgox.com currently shows a blank page, and all tweets have been deleted from the company's Twitter account.

A Reddit user reports that Mt. Gox suspended all trading at around 8:59 PM ET, before the site went offline, while The Next Web also claims that new user registrations were prohibited around the same time. Mt. Gox are yet to release a statement on why they have disappeared, and users remain unsure about what will happen to any currency the exchange holds.

Several other digital currency exchanges - Coinbase, Blockchain, Circle, Kraken, Bitstamp, and BTC China - have slammed Mt. Gox in a joint statement, which claims the company is reponsible for a "tragic violation of the trust of [its] users". The statement goes on to say there "are hundreds of trustworthy and responsible companies involved in Bitcoin. These companies will continue to build the future of money by making Bitcoin more secure and easy to use for consumers and merchants."

A company spokesperson allegedly told Re/code that Mt. Gox has filed for bankruptcy, although that claim hasn't been verified. Looking at the source code for mtgox.com reveals placeholder text saying "put announce for mtgox acq here", which suggests the exchange has been acquired.

Mt. Gox has been in serious trouble for weeks now. The exchange halted all withdrawals on February 7th, and on Sunday CEO Mark Karpeles resigned. Not only that, but a leaked document suggests around 750,000 bitcoins (around US$350 million) belonging to customers have been stolen through security flaws over the course of several years, putting the company in crisis mode.

Issues with the exchange have had a flow-on effect for the entire Bitcoin community, with the price of the the cryptocurrency plummeting further at today's news. What will happen next at Mt. Gox remains to be seen, as we await a further news or an official statement.




User Comments: 29

Got something to say? Post a comment
ikesmasher said:

Huh, how did I miss this news. The crash of the biggest bitcoin exchange is sort of a big deal.

Skidmarksdeluxe Skidmarksdeluxe said:

This is great, maybe AMD Radeon cards will become available and start selling at sane prices again.

Guest said:

Well, the source on the size says:

<!-- put announce for mtgox acq here -->

An acquisition perhaps? A decoy more likely?

Guest said:

*site, not size

Guest said:

Well, the source on the size says:

<!-- put announce for mtgox acq here -->

An acquisition perhaps? A decoy more likely?

You clever, clever shrew(family guy)

2 people like this | Sniped_Ash said:

This is what happens when one of the foundations of your revolutionary digital currency is the MAGIC: THE GATHERING ONLINE EXCHANGE.

Eddo22 said:

This is great, maybe AMD Radeon cards will become available and start selling at sane prices again.

It's my understanding that Asic cards are the way to go for mining Bitcoins... so unfortunately it probably won't affect the price since other currency such as Litecoin currently run only on standard computer hardware and Asic can't currently be used for Litecoining.

Brodo Laggins Brodo Laggins said:

This is what happens when one of the foundations of your revolutionary digital currency is the MAGIC: THE GATHERING ONLINE EXCHANGE.

LOL I thought you were kidding but... http://en.wikipedia.org/wiki/MtGox#History

This is great, maybe AMD Radeon cards will become available and start selling at sane prices again.

What Eddo said.

Guest said:

Real currency is backed by an Army and nuclear weapons.

Guest said:

Perhaps if there was some kind of, oh I dunno... Government Regulation in place to prevent this kind of thing, you nerds would still have your money. Real Money for the win!

Brodo Laggins Brodo Laggins said:

Real currency is backed by an Army and nuclear weapons.

Perhaps if there was some kind of, oh I dunno... Government Regulation in place to prevent this kind of thing, you nerds would still have your money. Real Money for the win!

Soooo basically what you're saying is...

RzmmDX said:

If it was a legitimate exchange, it would have been announced before they started freezing everything... unless their management is incompetent.

RzmmDX said:

If it was a legitimate exchange, it would have been announced before they started freezing everything... unless their management is incompetent.

Lol, that update.

Guest said:

Nothing makes me happier than being one of the hundreds of thousands of users who was ripped off by that shit show of an exchange.

davislane1 davislane1 said:

Nothing makes me happier than being one of the hundreds of thousands of users who was ripped off by that shit show of an exchange.

I can't help but respect a man who chooses to feel ironically about his own misfortune. #LowBlow

2 people like this | davislane1 davislane1 said:

Perhaps if there was some kind of, oh I dunno... Government Regulation in place to prevent this kind of thing, you nerds would still have your money. Real Money for the win!

Yup. Just like they've regulated education into a massive success, and regulated financial institutions into sound lending practices, and legislated healthcare into perfection, and regulated business such that they can't cook their books. Gov't Regulation FTW!

/sarcasm

Guest said:

BitCoin is not the only crypto-currency to go down in value. As far as I can see, all of them have gone down by about the same percent.

captaincranky captaincranky, TechSpot Addict, said:

Perhaps if there was some kind of, oh I dunno... Government Regulation in place to prevent this kind of thing, you nerds would still have your money. Real Money for the win!
Oh but there is Mon Cherie.

It's under Title 18 USC Chapter 25,(Criminal statutes), "counterfeiting".

[link]

Camikazi said:

BitCoin is not the only crypto-currency to go down in value. As far as I can see, all of them have gone down by about the same percent.

Because if the main ones reputation is tarnished it tarnishes all of them since most people see all crypto-currency as the same basic thing. The stock market is kind of the same way, usually if the biggest in one field has a huge problem others in the same field will feel the hit as well.

captaincranky captaincranky, TechSpot Addict, said:

Because if the main ones reputation is tarnished it tarnishes all of them since most people see all crypto-currency as the same basic thing. The stock market is kind of the same way, usually if the biggest in one field has a huge problem others in the same field will feel the hit as well.
Even the stock market has tangible property backing it up.GE has factories. Exxon Mobile has oil wells and refineries. In the case of commodities, it's usually speculative as to what crops are to be planted, and what will their value be at harvest

SO, Bitcoin is nothing like the stock market, it's pure bull s***, smoke and mirrors.

SchrödingersCat said:

Because if the main ones reputation is tarnished it tarnishes all of them since most people see all crypto-currency as the same basic thing. The stock market is kind of the same way, usually if the biggest in one field has a huge problem others in the same field will feel the hit as well.
Even the stock market has tangible property backing it up.GE has factories. Exxon Mobile has oil wells and refineries. In the case of commodities, it's usually speculative as to what crops are to be planted, and what will their value be at harvest

SO, Bitcoin is nothing like the stock market, it's pure bull s***, smoke and mirrors.

Wait a minute. The stock market isn't smoke and mirrors?

supertech supertech said:

What a disastrous idea. This is the first sign of a continued crash to this currency model.

captaincranky captaincranky, TechSpot Addict, said:

Wait a minute. The stock market isn't smoke and mirrors?
No it isn't. It's more like the hysteria of a chicken running around with its head cut off, with a bunch of inbred, fat cats betting on it.

Bitcoin is an update to an old adage. "Life sucks, and then somebody steals all your bitcoins".

Where the heck did they go anyway? What did Gox do, reformat all its hard drives?

Whoops,.....:oops: But these things are real money, I could swear to it.:p

Guest said:

Some people believe that Mt.Gox might have done the defraud themselves.

captaincranky captaincranky, TechSpot Addict, said:

Some people believe that Mt.Gox might have done the defraud themselves.
Isn't that how a Ponzie scheme works?

dividebyzero dividebyzero, trainee n00b, said:

Isn't that how a Ponzie scheme works?

Sounds like a fitting denouement for a what amounts to the pyramid scheme that cryptocurrencies are based around.

captaincranky captaincranky, TechSpot Addict, said:

Sounds like a fitting denouement for a what amounts to the pyramid scheme that cryptocurrencies are based around.
Nah man, we're all inside the matrix, and everything else is an illusion.\

Don't listen to me, I'm a bitter old man, who's just pissed because I don't have a video card powerful enough to, "mine" a fortune.

In other news, here in PA, many of the people that ran to change their electric suppliers, (after it became legal in PA), opted for a "variable rate plan". They were hit with bills ranging up to 25 cents a KW hour in January. A couple of old farts, (much as myself), pooped out a goldie when they got an $800.00 electric bill. (Our local utility would have cost them about $330.00).

Ironic huh? Just when the bottom fell out of the bitcoin market, the power companies jacked up the price of the power to mine them.

Wait, I know! Miners unite, all of you rush out and equip your houses with solar panels. You should be able to amortize that investment "quickly", with the returns from a mining operation. Say maybe, 2 or 3 decades?

dividebyzero dividebyzero, trainee n00b, said:

Wait, I know! Miners unite, all of you rush out and equip your houses with solar panels. You should be able to amortize that investment "quickly", with the returns from a mining operation. Say maybe, 2 or 3 decades?

A wise man* might start mining big time, and once a electricity usage pattern had been established, maybe switch to hydroponic cultivation. Resale of the Whatevercoin mining rig to some Johnny-come-lately at an inflated price should cover the new start up costs.

* Local pricing and demand, and whether you live in Colorado or Washington State dependant I guess.

captaincranky captaincranky, TechSpot Addict, said:

(captaincranky picks up lit thought provocation rollyerown, and inhales deeply)

....[ ....maybe switch to hydroponic cultivation......[ ]...
(cranky exhales with great force and a little cough).....Then says slowly, (still coughing), "Dude, what a positively stellar idea".....! *nerd*(y)

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