Friday, February 28, 2014

Digital Currency: Bitcoin Chaos: World's largest stock exchange Mt.Gox is broke - ABC Online

It had already become apparent: Earlier this week, is Mt.Gox disappeared from the Internet. Now the oldest Bitcoin Stock Exchange reported, according to media reports to the bankruptcy. Users tremble now to their credit.

The largest trade platform for the digital currency Bitcoin, Mt.Gox, has filed for insolvency. Mt.Gox have debts of around 6.5 billion yen (approximately 46 million euros), it said on Friday at a press conference in Tokyo, as the Japanese news agency Kyodo reported. Rumors of a bankruptcy appear to have been confirmed. Also, stay the speculation about a gigantic theft of client funds exist.

Bitcoin Stock Exchange had previously discontinued until further operation. Since the beginning of February, investors no longer come to their stored there deposits. On Tuesday morning Mt.Gox had suddenly disappeared from the Internet. At the web address appeared in the meantime only a blank white page. Then released CEO Mark Karpeles there a few lines in which he promised to work on a solution and denied rumors of a flight from Japan.

Course dollars at times over 1000 per Bitcoin

Bitcoins, also referred to as “hacking currency” has been around since 2009. They are generated in complex computing processes on the users’ computers, but can also be purchased on the internet with established currencies such as the dollar or euro. They are primarily for payments on the Internet to use. Last year the course was temporarily risen above $ 1,000 per Bitcoin. Finally, the price was quoted at $ 570. The closure of Mt.Gox crashed the currency in a crisis of confidence.

users of Mt.Gox fear all the more for their money, as well as rumors of a scam that should have taken place over the years on the page do not tear. According to a paper published on the Internet may have disappeared to the current value of over 300 million dollars more than 740,000 Bitcoins. In a chat log, which published, among others, “Fox Business” Karpeles had acknowledged that the document was “more or less” serious.

investigations initiated for Mt.Gox

in Japan have already been initiated investigations into Mt.Gox. “The government will take action if necessary, once we have analyzed the situation,” a government official said on Wednesday. According to “Wall Street Journal” investigate the case and U.S. authorities. U.S. federal prosecutors in New York are said to have requested subpoena documents from the company.

The new Fed chief Janet Yellen considers it difficult to exert control over the ailing digital currency Bitcoin. The Fed had no authority to regulate, Yellen said on Thursday evening before the Banking Committee of the U.S. Senate. She called the Bitcoin as an innovation, the abspiele outside the banking sector. It is but appropriate that the U.S. Congress dealing with legal questions about digital currencies.

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