Bitcoin exchange Mt. Gox reportedly files for liquidation

Mt. Gox, which at one point was the world's largest online Bitcoin exchange, has now apparently decided to cash out, literally. The Wall Street Journal reports, via unnamed sources, that the company has asked a court in its home city of Tokyo for permission to file for liquidation.

The report says that the current management of Mt. Gox, which filed for bankruptcy protection in late February, has found that holding meetings with its many creditors around the world was just too difficult. More importantly, there are no feasible plans to get the exchange out of bankruptcy. The Tokyo court will still have to approve the liquidation plan, and if that happens a trustee will be appointed to take over Mt. Gox and its remaining assets from its CEO Mark Karpelès.

When it filed for bankruptcy, Mt. Gox claimed that hackers had made false withdrawals from the online exchange that caused 750,000 Bitcoins to be taken from its customers, along with 100,000 of its own. The management of the exchange knew about the missing Bitcoins months beforehand but continued to trade in the controversial online currency until it finally shut down on January 25th. Since Mt. Gox entered bankruptcy, 200,000 of the lost Bitcoins have been recovered.

Source: Wall Street Journal | Image via Mt. Gox

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12 Comments

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I love watching the silly BitCoin confidence trick unravelling in the eyes of its disciples.

Hahah silly BitPeople believing in an unintelligible crypoto-nonsense notepad currency. HAHAHA

glen8 said,
When lots of people use a system to make profit, that system will always fail

Minorities get rich

Huh? Care to explain?

Yeah. When the system is flawed - but the Bitcoin system isn't so. Mt. Gox was the problem and not Bitcoin itself.

It comes down to what is considered just. Bitcoin follows the laws of economics and is thus neither just or unjust.

Robert Sundström said,

Huh? Care to explain?

Yeah. When the system is flawed - but the Bitcoin system isn't so. Mt. Gox was the problem and not Bitcoin itself.

It comes down to what is considered just. Bitcoin follows the laws of economics and is thus neither just or unjust.

Bitcoin may not be flawed in principle, but the reality is that when you put it into practice, you then have to deal with human beings. That means things can fail. If it fails enough, that could be a sign that the plan may just not work as envisioned, even if the base idea is sound. Adding in the human factor is a must when planning this stuff.

Hahaiah said,
Nice try with the "human" factor, so no real point then right?, got it.

Did I say that? Nope. But nice try overreacting to my comment.

It means you have to adjust your basic plan to account for the human factor. It means you try to come up with safe guards that can protect against such things happening again. It means everyone needs to be mindful of potential issues.

If you would rather ignore potential issues and just assume it will all work out, your much more likely to repeat the failures of the past.