MT.Gox faces loss of $425 million in Bitcoins

MT.Gox faces loss of $425 million in Bitcoins

The CEO of Mt.Gox Mark Karpeles said that 8, 50000 bitcoins –worth of millions of dollars- go missing. The Tokyo based bitcoin exchange company has filed bankruptcy protection on Friday. The news came into the limelight when CEO of Mt.Gox held a press conference before a Japanese TV and said in Japanese that “I am sorry for creating troubles for all people”. The sudden disappearance of huge figure of bitcoins is yet to be identified and the company has not stated officially how the bitcoins were gone missing.

He confessed before the press that the flawed system of exchange was the main reason of losing 7, 50000 bitcoins of people and 100,000 of the company. And, as per the recent price, the worth of missing bitcoins was about $425 million.

Inevitably, after the bankruptcy of Mt.Gox everyone considers the virtual currency insecure and unsafe. But, the Bitcoin business runners said that it was the technological failure at the part of Mt.Gox and it would not affect the potentiality of this virtual currency.

The Teikoku Databank that usually deals with bankruptcy cases has said that “the debt of Mt.Gox is greater than its assets and it is also more than 6.5 billion yen ($65 million)”. Upon hearing the saga, the Japanese Finance Minister stated that “I had already expected the collapse because no one is recognizing this currency”.

It goes without saying that Japanese Finance minister has categorically stated that it would not intervene in the matter of Mt.Gox because it does not fall under the financial regulations of Japan. On the other hand, the Consumer Affairs Agency’s Minister Masako Mori has cautioned everyone for using or investing in the bitcoin currency.
Last but not the least it was the gruesome situation for Mt.Gox and for the people who suffered the loss. And, people are warned by the official authorities of Japan that not to use the currency which does not have global recognition.
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