This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bitcoin Exchange Mt. Gox Files for Bankruptcy

By Hal M. Bundrick

NEW YORK (MainStreet) aAA What had been the largest bitcoin exchange in the world has filed for bankruptcy. Mt. Gox, the embattled Tokyo-based company, began bankruptcy proceedings today, reporting revenue of some $1.33 million for the year ended March, with debt exceeding its assets by $26 million. An attorney representing Mt. Gox told the Tokyo District Court that the company owed more than $63 million to 127,000 creditors.

"I'm truly sorry to have caused inconvenience," Mark Karpeles, the company's chief executive told reporters as he bowed in apology.

The firm, which at its height processed a reported 80% of all bitcoin transactions, says that it lost 750,000 bitcoins belonging to users -- and 100,000 of its own -- in a hacking attack. The combined total would represent nearly 7% of the entire 12.4 million bitcoins currently in circulation.

The company has visibly struggled with numerous issues for nearly a year, culminating in a halt to customer withdrawals on February 7.

"No one recognizes [bitcoin] as a real currency," Japan's Finance Minister Taro Aso told reporters after the bankruptcy announcement. "I expected such a thing to collapse."

Meanwhile U.S. federal prosecutors have issued subpoenas to Mt. Gox, as well as other bitcoin exchanges, seeking the preservation and surrender of data and documents. Senator Joe Manchin (D-W.Va.) called for a ban on bitcoin Wednesday, saying in a letter to the Treasury, the Federal Reserve and other regulatory agencies that bitcoin is "disruptive to our economy" and ripe for abuse by criminals.

"This virtual currency is currently unregulated and has allowed users to participate in illicit activity, while also being highly unstable and disruptive to our economy," Senator Manchin's statement said. "Before the U.S. gets too far behind the curve on this important topic, I urge the regulators to work together, act quickly, and prohibit this dangerous currency from harming hard-working Americans."

--Written by Hal M. Bundrick for MainStreet

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.25 -0.80%
FB $83.30 0.35%
GOOG $548.34 -1.23%
TSLA $185.00 -2.84%
YHOO $45.10 1.42%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs