Shutdown of Mt. Gox Imminent?

  1. [​IMG]

    All good things must come to an end; or at least, that is what it seems like for Mt. Gox. Around 9PM EST, Reddit user relliMmoT reported that trading has been suspended on the Bitcoin Exchange. This is just the latest news in a string of disasters for Mt. Gox.

    On February 7th, withdrawals were revoked on all trading accounts. This was a direct result of an operational exploit to the cryptocurrency which allowed individuals to partake in a form of receipt fraud. Once Gox discovered the attack, they closed off withdrawals. Since then, traders have not been able to access their funds. Despite their efforts to remedy the issue, the damage was already done. One warning of the fall of Mt. Gox was when the exchange deleted all tweets off their official Twitter account. Thousands of tweets vanished in a matter of minutes. This lead to yesterday's announcement that CEO of Mt. Gox, Mark Karpeles, resigned from the Bitcoin Foundation's board of directors. Bitcoin Foundation is the leading advocate for the currency's standardization and protection in a global marketplace. Karpeles cited the reasons for leaving the foundation were to focus on Mt. Gox's current problems. Other board members claim that the CEO left on good terms. Board member Elizabeth Ploshay remarked "they have their hands full. It's better for them to be taking care of the matters they have in front of them."

    Clearly Mt. Gox is in flux and there doesn't appear to be any signs of life. The website is currently down with no access. Many investors may have lost all their funds in this debacle as Mt. Gox was the largest Bitcoin exchange in the world. Prices on other exchanges continue to fall as uncertainty lingers in the Bitcoin marketplace. Could this be the end of Mt. Gox?

    Update:
    Did a little more digging and found this. These are unconfirmed emergency plans that begins with an announcement tomorrow. According to the documentation, they are liable for nearly $120 Million!

    Share This Article

Comments

To make a comment simply sign up and become a member!