Technology

Mt. Gox Files For Bankruptcy

| by Will Hagle

The Bitcoin community is used to drastic fluctuation. That’s the nature of the deregulated digital currency. Still, Bitcoin owners were shocked when Mt. Gox, one of the world’s most popular bitcoin exchanges, was robbed. 

The company initially reported that it had lost a total of 850,000 Bitcoins, 750,000 of which belonged to users and investors. The Star estimates that number translates to around $480 million. 

Although the incident immediately rattled concerned Bitcoin users, Mt. Gox CEO Mark Karpeles has remained relatively silent on the issue. The Tokyo-based French CEO was recently forced to make public statements when he appeared in court, filing for civil rehabilitation, or the Japanese equivalent of Chapter 11 bankruptcy in the U.S. Although Mt. Gox has promised that it was working to fix the issue, most members of the Bitcoin community speculate that the stolen coins are gone forever. 

In his court statement, Karpeles indicated that he stands by Bitcoin despite his company’s recent incident. 

“First of all, I’m very sorry. The Bitcoin industry is healthy and it is growing. It will continue, and reducing the impact is the most important point,” Karpeles said.

Karpeles’s apology serves as an admission of guilt for his role in what many believe to threaten the future of the digital currency. It’s likely, however, that Bitcoin will continue to operate despite the loss of its once dominant exchange. 

In response to the incident, Mt. Gox has opened a call center in order to answer any customer’s questions regarding the significant loss of money, Mashable reports.