Mt. Gox, once the world’s largest Bitcoin exchange, shut down after detecting “unusual activity.” Leaked documents reveal that over 740,000 bitcoins are missing from Mt. Gox, which translates to hundreds of millions of dollars in losses.
From CBC News:
In yet another blow to virtual currency bitcoin, a major bitcoin exchange has gone bust after secretly racking up catastrophic losses, other virtual currency companies said Tuesday.
Tokyo-based Mt. Gox posted an update on its website on Tuesday, saying a “decision was taken to close all transactions for the time being.”
Mt. Gox had imposed a withdrawal ban earlier this month after detecting what it called “unusual activity” and then on Tuesday, its website went dark. The new message posted later in the day said: “We will be closely monitoring the situation and will react accordingly.”
On Sunday, Mt. Gox CEO Mark Karpeles resigned from the board of the Bitcoin Foundation, a group seeking legitimacy for the currency, which has been tainted by extreme volatility, dodgy exchanges and its association with criminal activities.
Prominent members of the bitcoin community — including San Francisco-based wallet service Coinbase and Chinese exchange BTCChina — sought to distance themselves from the Mt. Gox collapse. They called it an isolated case of mismanagement and said other exchanges have better security and management systems.
“As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today,” the statement said.