Wired are reporting that the Mt.Gox crypto-currency exchange has most likely gone out of business.
It has apparently lost hundreds of millions of dollars due to a years-long hacking effort that went unnoticed by the company.
The hacking attack is detailed in a leaked “crisis strategy draft” plan, apparently created by Gox and published Monday by Ryan Selkis, a bitcoin entrepreneur and blogger.
Gox’s insolvency has also been independently confirmed by Coinbase.
The exchange is reputed to have lost 744,408 Bitcoins — worth about $350 million at Monday’s (Fe, 24, 2014) trading prices.
Wired reached a Gox representative last night who declined to comment on the above document and referred the reporter to the company’s webpage, before abruptly hanging up. But the website went offline a few hours after the company suspended trading on its exchange, and if the document is indeed authentic, the situation it described could reverberate across the world of Bitcoin and possibly hamper the future of the digital currency.
Mt.Gox has also deleted all of the tweets from its Twitter account.
Citing a long-standing lack of confidence in Mt.Gox, Roger Ver in an instant message interview said “Gox is the worst-run business in the history of the world.” Ver is a Bitcoin advocate who lives across the street from Mt. Gox’s Tokyo offices and tried to help out the troubled exchange the last time it was hacked, back in 2011.
Coinbase and Blockchain quickly put out a statement as news of the hack spread. “This tragic violation of the trust of users of Mt. Gox was the result of one company’s abhorrent actions and does not reflect the resilience or value of Bitcoin and the digital currency industry,” they said. “There are hundreds of trustworthy and responsible companies involved in Bitcoin.”
So what are your thoughts on this latest upheaval in the Bitcoin world?
Top image: Mark Karpeles, the man behind Mt. Gox. Screenshot: Reuters
Filed under: Bitcoin Journal