Head of troubled bitcoin exchange still in Japan

Feb 27, 2014 by Yuri Kageyama

(AP)—The head of troubled bitcoin exchange Mt. Gox says in a web post that he is still in Japan, and "working very hard" to find a solution to the Tokyo-based organization's problems.

The exchange has suspended trading amid accusations it suffered a catastrophic theft and its website went blank Tuesday, sparking speculation that it has collapsed.

Bitcoin, created in 2009, is an online currency that allows people to make transactions across borders without involving third parties such as banks or credit card issuers.

Tokyo-based Mt. Gox was one of the world's biggest exchanges for bitcoins.

CEO Mark Karpeles, who has disappeared from the public eye, said in a two paragraph post on the Mt. Gox website dated Wednesday that he has the support of different parties in finding a "solution to our recent issues."

He did not say who they were, what the solution might be or when trading might resume.

Some investors have traveled to Tokyo from abroad to try and reclaim money tied up in bitcoins at Mt. Gox.

In his statement, Karpeles also asked people to refrain from asking questions of Mt. Gox staff.

"Please visit this page for further announcements and updates," he said.

It is unclear whether Mt. Gox's woes make for an isolated case or will put bitcoins at risk. Boosters of the online currency say cryptography makes it immune to theft or counterfeiting but Mt. Gox's problems have underlined its risks.

Japanese authorities have said they are gathering information about the problem, but regulators said virtual currencies don't fall under their jurisdiction.

Explore further: Website of Bitcoin exchange Mt. Gox offline (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Bitcoin rises above $1,000

Nov 27, 2013

The virtual currency bitcoin Wednesday broke above $1,000 per unit, quintupling in a month, according to Mt. Gox, which manages trading in bitcoin.

Bitcoin entrepreneurs bullish despite tech trouble

Feb 12, 2014

A freeze on Bitcoin withdrawals imposed by three major exchanges won't cause any long-term harm to the digital currency's credibility, entrepreneurs attending a Bitcoin conference said Wednesday.

Bitcoin value plunges on Japanese exchange

Feb 19, 2014

The value of bitcoin on a Tokyo exchange was less than half that on other platforms Wednesday, two weeks after it suspended withdrawals claiming a bug in the software that underpins the virtual currency.

Recommended for you

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

Apple starts iPhone 6 sales in key China market

Oct 17, 2014

Apple began selling its latest iPhone in China Friday, nearly a month after other major territories due to a licence delay by regulators, but it faces a tough battle with rivals led by Samsung in the crucial ...

Microsoft CEO launches diversity training effort

Oct 17, 2014

(AP)—Microsoft CEO Satya Nadella has again apologized to employees and announced in a company-wide memo that all workers will receive expanded training on how to foster an inclusive culture as he works to repair damage ...

Arguments made in ex-dictator's suit against game

Oct 17, 2014

(AP)—A judge has heard arguments from lawyer and former New York City Mayor Rudy Giuliani calling for the dismissal of a lawsuit filed against video game giant Activision by former Panamanian dictator Manuel Noriega.

User comments : 0