Mt. Gox Goes Down, Deletes All Tweets

In the blink of an eye, the world’s most popular Bitcoin exchange has vanished.

Mt. Gox has had a lot of negative news surrounding it ever since the exchange stopped allowing Bitcoin withdrawals on February 2nd. Today, all withdrawals have halted completely, and Mt.Gox’s website is completely unaccessible.

Update: A statement has been posted on the Mt. Gox website. It reads:

Dear MtGox Customers,

In light of recent news reports and the potential repercussions on MtGox’s operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.

Best regards,
MtGox Team

 

For now, there is no accessing Mt. Gox. But what could have happened to put them in this situation?

Leaked documents circulating around the internet state that Mt. Gox has been a victim of a major hacking, having lost up to 744,000 Bitcoins.

In 2011, Mt. Gox was similarly hacked, although the amount of Bitcoin stolen was significantly less. Mt. Gox made up for the issue, and returned all of the stolen coins to the owners. However, being in a poor financial situation at the moment, it is almost certain Mt. Gox will not be able to do so again.

On top of all of this, the CEO of Mt. Gox has stepped down from both Mt. Gox and the Bitcoin foundation, likely signalling the end of Mt. Gox. Mt. Gox is at the edge of bankruptcy, and the lack of a working exchange, along with lawsuits being filed against them, makes the outlook for the Bitcoin exchange look very poor.

The Future Of Bitcoin?

The Mt. Gox collapse has raised a lot of questions regarding the security and sustainability of Bitcoin and cryptocurrency in general. However, it’s important to remember that this was an issue with one specific exchange, rather than a problem with Bitcoin as a hole. Bitcoin is still in its early stages, and although we’ve ran into a problem now, overcoming the Mt. Gox situation will only make Bitcoin better in the future.

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