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Mt Gox files for bankruptcy in Japan

Digital currency exchange goes under in the land of rising sun
Fri Feb 28 2014, 15:32
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BITCOIN EXCHANGE Mt Gox has filed for bankruptcy in Japan, according to reports.

Various reports have the bankruptcy story as a given, but this has not been confirmed by the firm, which recently took to making bleak statements on its website.

"As there is a lot of speculation regarding MtGox and its future, I would like to use this opportunity to reassure everyone that I am still in Japan, and working very hard with the support of different parties to find a solution to our recent issues," said the latest post on the Mt Gox website.

"Furthermore I would like to kindly ask that people refrain from asking questions to our staff: they have been instructed not to give any response or information. Please visit this page for further announcements and updates."

Mt Gox is based in Japan, and Reuters reported that its bankruptcy filing refers to losses of half a billion dollars worth of Bitcoin.

The company is already under investigation in Japan and earlier this week when the shutdown and reports of theft surfaced Yoshihide Suga, the Japanese government chief cabinet secretary, confirmed the investigation.

"I understand that ministries and agencies concerned, financial services, police and the finance ministry, are looking into the matter to learn the full scope of the issue," he said. "Once we have full knowledge of what happened, we will take action if necessary."

Fox Business has published part of an IRC chat between Mt Gox CEO Mark Karpeles and Jon Fisher, an industry consultant.

In the discussion Karpeles confirmed the authenticity of a document that has been doing the rounds and talked about the crisis at the exchange that is thought to have led to its problems.

Karpeles acknowledged the Crisis Strategy Draft, but added that it was merely that, a draft document. "As the name suggests it's a draft, and it's a bunch of proposals to deal with the issue at hand, not things that are actually planned and/or done," he said. µ


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