NPR : News

Filed Under:

Bitcoin Exchange Mt. Gox Files For Bankruptcy In U.S.

Weeks after its financial troubles forced it to file for bankruptcy protection in Japan, Mt. Gox has obtained similar protection in the U.S. The Tokyo-based bitcoin exchange suffered a collapse after a reported theft of hundreds of millions of dollars.

Mt. Gox had been the most active bitcoin exchange before it announced the loss of hundreds of thousands of units of the cryptocurrency in an attack by hackers. The company said its own bitcoins were stolen along with those of customers.

At least two lawsuits have been filed in U.S. courts against Mt. Gox, including a class-action suit in Chicago federal court, as Reuters reports.

From Japan's NHK:

"The federal court in Texas granted temporary Chapter 15 bankruptcy protection to the Tokyo-based Mt Gox.

"The exchange has not disclosed the amount of its assets in the country. But the U.S. Department of Homeland Security seized 5 million dollars' worth of its assets last May for unlicensed fund transfers."

At the end of February, Mt. Gox "filed for bankruptcy protection in Japan, saying it had lost track of nearly $480 million worth of the virtual currency," as Mark reported for the Two-Way.

The current price for a bitcoin stands at $621 today, according to the CoinDesk site – a price that's slightly above the levels seen on the day Mt. Gox announced the theft. The currency had hit highs of more than $1,000 in the months before that news came out

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

NPR

Pack These Pages: Three Must-Reads For Summer

Harriet Logan, owner of Loganberry Books in Shaker Heights, Ohio, recommends a graphic novel about trash, a George Eliot classic and a children's book about a bear pianist.
NPR

Why Does Every New Restaurant Look Like A Factory?

The stripped-down look of exposed brick, poured cement floors, and Edison light bulbs is popular in restaurants across America. One reporter dares to ask, "Seriously, why?"
WAMU 88.5

Why Local Nonprofits Haven't Fixed Poverty

As long as there has been poverty, there have been people trying to end it. We explore the obstacles and inefficiencies local nonprofits run into when trying to solve society's stubborn problem.

WAMU 88.5

Can We Trust Our Cars?

There were more airbag recalls this week, and VW has agreed to pay nearly fifteen billion in its emissions cheating scandal. Meanwhile, cars with driverless technology are becoming available, but whether they will make us safer is up for debate. A look at auto safety and consumer trust.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.