Monday, March 3, 2014

Mt. Gox Lost More than Just Bitcoins

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A protester asks the $500 million question. (ASSSOCIATED PRESS)

Following the bankruptcy of Bitcoin exchange Mt. Gox on Friday, the company has released a full statement on the matter on the homepage of its website.

Under the purview of the Tokyo District Court on Friday, the company began “procedure of civil rehabilitation.” This includes orders preventing the company from paying its debts, transferring assets, or performing other financial maneuvers.

It also gives specifics numbers on how the liabilities of the company dwarf their current assets. Gox currently has assets totaling 3,841,866,163 yen, and liabilities estimated around 6,501,119,371 yen (roughly $38 million and $64 million, respectively). Those estimates only account for fiat currency, and clearly don’t take into account the loss of the bitcoins themselves, which is estimate to reach as high as $500 million.

It appears that Gox’s losses extended further than just the hundred of thousands of bitcoins. The notice also states:

[On Feb. 24], we found out large discrepancies between the amount of cash held in financial institutions and the amount deposited from our users. The amounts are still under investigation and may vary but they approximate JPY 2.8 billion.

For the rest of the story: http://www.thewire.com/business/2014/03/mt-gox-lost-more-just-bitcoins/358726/

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