Update | 850,000 bitcoins lost as Mt Gox exchange files for bankruptcy
Bowing in contrition, Mt Gox chief executive Mark Karpeles apologises for troubles and blames lax internal computer security systems
Troubled bitcoin business Mt Gox yesterday filed for bankruptcy, ending days of speculation about the Tokyo-based company's dire financial situation.
At a press conference at Tokyo District Court, Mt Gox's French CEO Mark Karpeles said the firm had applied for bankruptcy protection as it was saddled with 6.5 billion yen (HK$494 million) in outstanding debt and only 3.8 billion yen in assets to cover losses.
A bigger black hole for investors may yet emerge as Mt Gox said the exchange, used overwhelmingly by foreigners, had lost 750,000 of its users' bitcoins and 100,000 of its own. At the current bitcoin price of about US$565, that would total some US$476 million.
Just hours before the bankruptcy filing, Japanese Finance Minister Taro Aso said: "No one recognises them as a real currency. I expected such a thing to collapse."
Japan's financial regulators have been reluctant to intervene in the Mt Gox situation, saying they do not have jurisdiction over something that is not a real currency.
An embattled Karpeles looked tired and resigned as he appeared in front of the cameras.
Bowing in contrition, Karpeles spoke in Japanese and said: "I am sorry for the troubles I have caused all the people." He apologised for what he cited as "a weakness in our system", pointing a finger at lax internal computer security systems.
