Mt Gox

About Mt Gox

Mt Gox was a bitcoin exchange based in Tokyo. At its peak, Mt Gox handled approximately 70 percent of all bitcoin trades worldwide. In February 2014, Mt Gox suspended withdrawals and filed for bankruptcy, revealing that 850,000 bitcoins valued at approximately 450 million had been stolen. CEO Mark Karpeles claimed the bitcoins were lost due to a software vulnerability called transaction malleability. Later investigation revealed that the bitcoins had been stolen over several years. Karpeles was arrested and charged with embezzlement. He was convicted of falsifying data but acquitted of embezzlement. Mt Gox creditors are still pursuing recovery through Japanese bankruptcy proceedings. Approximately 200,000 bitcoins were eventually recovered. The Mt Gox collapse was the first major cryptocurrency exchange failure.