Mt. Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, by 2013 and into 2014 it was handling over 70% of all bitcoin (BTC) transactions worldwide, as the largest bitcoin intermediary and the world’s leading bitcoin exchange. In February 2014, Mt.
Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings.
Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time.
In March 2018, Mt. Gox CEO Mark Karpelès was arrested in Tokyo on suspicion of embezzlement and data manipulation. French-born Karpelès, who has lived in Japan for years, has denied any wrongdoing.
This is to inform all users of the Mt. Gox Bitcoin that the company has declared bankruptcy and is no longer in operation. All users of the Mt. Gox Bitcoin are advised to take appropriate action to protect their funds and investments, as there is no guarantee of recovering any lost funds. All users should be aware that there may be risks associated with investing in digital currencies such as Bitcoin, and should exercise caution when making any decisions about their investments.
Mt. Gox is currently in civil rehabilitation proceedings.
On February 24, 2020, a Tokyo court ordered Mt. Gox to pay a Japanese firm ¥1.25 billion ($11.5 million) in damages for losses caused by the now-defunct bitcoin exchange’s bankruptcy.
The order found that Mt. Gox had acted negligently by not keeping proper records of its clients’ bitcoins and by allowing their accounts to be used to trade with other customers without their knowledge or consent. The court also ruled that Mt. Gox was not liable for any damages caused by fluctuations in the value of bitcoin during the time when it was insolvent.
What happened to the Mt. Gox Bitcoin? The answer is still unfolding as the story continues to develop through civil rehabilitation proceedings.