Tokyo-based former Magic: The Gathering card trading emporium and world’s largest BitCoin crypto-currency exchange Mt Gox has finally declared bankruptcy after losing 500 million dollars of BTC and pretending it was solvent for the better part of a year.
At its 2013 heights the site reputedly handled 70% of the world’s BitCoin exchange transactions, but soon after delays and limits on withdrawals began and by February the exchange had halted all BitCoin transactions (thankfully it stopped handling Magic cards some years before).
Several weeks of evasion then culminated in a bankruptcy filing at a Tokyo court, with French CEO Mark Karpeles apologising “for causing so much trouble.”
With the main exchange having suffered so many high profile problems for so long the value of BitCoins themselves was badly affected, but the protocol itself is believed to be sound and other exchanges continue to trade without issue.
MtGox still maintains weaknesses in the BitCoin protocol (or more likely weaknesses in its notoriously poorly coded exchange platform) allowed unknown hackers to make off with enough of its coin balances to force it into insolvency, all without being detected.
Needless to say a variety of alternative explanations substituting criminal conspiracy for sheer incompetence have emerged (to say nothing of those who maintain the entire currency is a grand pyramid scheme), although any official investigations have yet to even begin.
The Internet is filled with the wroth of those unfortunate enough to have stashed all their wealth in BitCoins rather than the physical security of a Black Lotus, and 2ch is no exception:
“So they are blaming it all on unauthorised accesses!”
“One guess as to where they originated – from themselves, most likely.”
“A pretty high level fraud scheme, all in all.”
“All according to plan.”
“Who ended up with all the coins then?”
“That pig is running I see!”
“Expect him in Dubai next month living the high life.”
“Have they not raided him yet?”
“Just look at that smug look on his face. Guess who did it.”
“He’s obviously been eating and drinking his fill these past few years…”
“Largess at the top and embezzlement probably account for all those coins. Serves anyone dumb enough to have traded with them right.”
“Even if he gets a sentence he will be out in a few years with millions secretly stashed in BitCoin accounts to enjoy.”
“BitCoin is too convenient for its own good – no way would governments let it go unmolested for long.”
“So much for the Magic The Gathering Online eXchange…”
At least MTG cards are still worth something.
First silkroad got robbed (by their own staff), and then MtGOX bankrupt, i see bitcoin are very far away from “safe currency”
Would bang 24/7/365.
& in other news; “Quiznos, the second largest submarine sandwich restaurant chain in North America, announced they intend to file for bankruptcy debt protection because the company owes $570 million in debt.” Coincidence? You decide.
Kill ’em!! Kill ’em before they reproduce!!!