Bitcoin Mt. Gox Collapse

Mt. Gox was a bitcoin exchange website based out of Japan, which was once the largest of any other exchange platform. In February of 2014, Mt. Gox filed for bankruptcy, claiming a loss of 750,000 customers’ bitcoins along with 100,000 worth about $500 million dollars.

The blame for the cause of the bitcoin loss was hacking. The hacker was accused of manipulating the company’s account system. A year later, a man was brought into custody suspected on manipulating his account making it appear as though $1 million was added to it. The man was Mark Karpeles, who was head of Mt. Gox at the time of the collapse. While the connection between his account, that of  Mt. Gox and the missing $500 million was unclear, it was suspected that Karpeles was the cause of the missing bitcoin. However, no official statement was given by Japanese police to confirm the theory. Mr. Karpeles has not been charged with a crime yet but was taken into police custody on Saturday, August 1st 2015.  He has not been brought up on charges since he was brought in for questioning.

Mt. Gox’s mysteriously disappearing bitcoin has people questioning the situation, doubting it was really lost. This is especially the case when Mt. Gox claimed to have found some of the “missing” bitcoin, but for the rest of the missing bitcoin its whereabouts are still unknown. Theorists speculate that Mr. Karpeles himself stole the bitcoin and exchanged it for money. Due to bitcoins untraceable nature, the theory cannot be proven, but it was enough that angry customers sat and protested in front of Mt. Gox headquarters.

It is unclear whether Mr. Karpeles was the cause of the collapse or even the mastermind behind it. To date, there has been no official arrest made. Instead, an investigation was opened. The courts appointed another exchange company to help find the missing bitcoin, but the odds of finding the collapsed Mt Gox bitcoins are not good.