MtGox Bitcoin exchange 'files for bankruptcy protection'

[Redfairen]

Source: Agence France Presse

The troubled MtGox bitcoin exchange filed for bankruptcy protection in Japan Friday after claims of a multi-million dollar theft from its digital vaults, media reports said.

The Tokyo District Court accepted the application from MtGox, Jiji Press and public broadcaster NHK said.

The action was taken after US prosecutors reportedly served a subpoena on the company.

The website of Tokyo-based MtGox went dark on Tuesday, possibly heralding huge losses for investors, and sending ripples of alarm throughout the global community of digital currency adopters.


Read more: http://news.yahoo.com/mtgox-bitcoin-exchange-files-bankruptcy-protection-095204460.html

[tomm2thumbs]

1. How on earth did anyone think they financed the Olympics in Sochi anyway?

Loved the description... 'digital vaults' is an oxymoroon

[joshcryer]

2. HAHAHA!

HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA! HAHAHAHAHAHAHAHAHAHAHAHA!



Good.

[Crowman1979]

3. Another Libertarian EPIC FAIL!

This is what happens with an unregulated currency. Plus, Mt Gox is an acronym for "Magic The Gathering Online Exchange". Now why the hell anyone would want a currency based on gaming cards is beyond belief.

[sendero]

4. All that's left to discover..

... is whether this was insider theft or gross incompetence.

[titaniumsalute]

5. We live in fucking fantasy land

The digital vault was robbed? Jesus K Christ. What kind of a bizarre world are we in now anyway?

[randome]

6. The irony is incredible.

Using the existing monetary system to protect them from their own failed system.
[hr][font color="blue"][center]Stop looking for heroes. BE one.[/center][/font][hr]

[Tommy_Carcetti]

7. Is it Bitbankruptcy? nt

[Kelvin Mace]

8. They should have stuck to trading Magic cards

Much safer investment.

[jsr]

10. No kidding.

[Arkana]

9. Oh really? They'd like financial coverage from a currency they deem "insolvent"?

Fuck them. Anyone who invested in the bitcoin scam deserves to lose everything. Libertarians are morons.

[jsr]

11. Courtesy of n2doc:

[LynneSin]

12. The other day someone was trying to convince me how awesome bitcoins were.

I was thinking in 1980s mode and needed to get with modern times because there was all this amazing technology that made bitcoins the way to go with our money.

I have read about bitcoins and some of their technologies on how bitcoins are 'mined' and to me it sounded like one giant pyramid scheme. I also read about how bitcoins are the currency of choice for criminals, vendors on the internet underbelly and money launderers. In fact only a few months ago another bitcoin exchange CEO was busted for money laundering.

Complicated Math Problems mined to obtain bitcoins? Sorry that sounds like giant fricking scam to me. I think anytime someone at the top of the pyramind bitcom scam needed US currency they allowed for bitcoins to be 'found' while mining so they could get more suckers to buy the coins. These exchanges were really meant for people to buy currency - could anyone be foolish to think that these exchanges would have the actual cash to support the amount of currency out there.

The rate of bitcoins to US Dollars - that's all hyper-inflation. Maybe someone's bitcoin is worth $500USD but first you have to find someone to pay that much for it and with 2 Bitcoin exchanges going down that's going to be harder and harder.

For those of you who have somehow made money on bitcoins then I say congrats to you. But please play it smart - in the end bitcoins are nothing more than gambling in hopes that you might get a return on your money.