Mt Gox CEO Karpeles says bitcoin exchange is at "turning point"

Tue Feb 25, 2014 9:39am EST

Feb 25 (Reuters) - Mt. Gox, once the world's largest bitcoin exchange, is "at a turning point," CEO Mark Karpeles told Reuters in an email, as the trading website remained down on Tuesday after halting withdrawals earlier in February.

In an emailed response to a question of whether the Tokyo-based exchange was dead, Karpeles said: "We should have an official announcement ready soon-ish. We are currently at a turning point for the business. I can't tell much more for now as this also involves other parties."

The digital marketplace operator said earlier this month that it had detected "unusual activity" and its office in Tokyo was empty on Tuesday, barring a handful of protesters saying they had lost money in the virtual currency.

Six leading bitcoin exchanges distanced themselves from Mt. Gox in a statement, calling the exchange's activities a "tragic violation of the trust of users of Mt. Gox."

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Comments (8)
Fex wrote:
This is absolutely ridiculous.

If nothing else, there should be legislation that prevents market manipulating like this.

If all this turns to be just insider trading… I really hope there will be some ramifications.

Feb 25, 2014 10:11am EST  --  Report as abuse
The truth is Mark Karpeles and his company failed basic accounting, and the “unusual activity” was paying out to customers multiple times because of a flaw in how they were tracking payouts.

If they had the skill the average person uses in balancing their checkbook they would have noticed this. Despite the seeming complexity, bitcoin uses a public account book, where debits and credits for every account are recorded. Thus it is easy to track how much you have sent from your account to someone else’s.

People would claim a payout never arrived, and ask that it be sent again, and Mt.Gox didn’t properly verify what happened to the first payout. So they ended up sending it again. Obviously this leads to losses, and ultimately their collapse.

Feb 25, 2014 11:25am EST  --  Report as abuse
rjaklic wrote:
Did you ask him if funds are in safe place and if, will we get them back?

Feb 25, 2014 2:30pm EST  --  Report as abuse
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