Mt. Gox

Mt. Gox63 posts

Mt. Gox was one of the first Bitcoin exchanges, a place where customers could convert their local currencies into the virtual currency. The site was located in Japan and run by Mark Karpeles, a young French programmer. As Bitcoin increased in value the site experienced technical difficulties, hacking and public relations crises, culminating in the exchanges’ bankruptcy in February 2014, and the loss of hundreds of millions of dollars of users’ funds.

21 May, 2014

Bankruptcy proceedings schedule


The Bankruptcy Trustee sets April 24 as the date for the start of bankruptcy proceedings, at Mt Gox offices in Shibuya, Tokyo. A creditors’ meeting for reporting on the status of the assets will be held on July 23 at the Tokyo District Court. Creditors do not have to attend the meeting; the proceedings will be posted to the Mt Gox website. Bankruptcy claims must be submitted to the trustee before Nov 28, using a form provided by the trustee. Claims will be assessed on Feb 25, 2015.

17 Mar, 2014

Canadian class action announcement


Canadians with deposits in Mt Gox announce a class action for $500 million in compensation for  losses on the exchange. The lawsuit targets Mt. Gox, Karpeles and Jed McCaleb, and Mizuho bank, one of the largest banks in Japan, according to a notice of action to Ontario Superior Court. Toronto litigation lawyer Ted Charney said:

We’re never going to find out what’s going on unless we start a lawsuit because it’s the only way we’re going to get access to the records. It’s really the only way to get the thing going.

The notice of action, a summary of the case, gives lawyers a month to file a substantive statement of claim.

24 Feb, 2014

Other exchanges issue statement

AnnouncementMakes Statement

A statement is issued by the founders of other Bitcoin exchanges, distancing themselves from Mt. Gox:

This tragic violation of the trust of users of Mt.Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants.  As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.

17 Feb, 2014

Withdrawals will restart ‘soon’


We have now implemented a solution that should enable withdrawals and mitigate any issues caused by transaction malleability. With this new system in place, MtGox should be able to resume withdrawals soon. At the beginning we will do so at a moderated pace and with new daily/monthly limits in place to prevent any problems with the new system and to take into account current market conditions.

10 Feb, 2014

‘Transaction Malleability’ bug


The exchange announces the reason for the suspension of withdrawals is the detection of unusual activity on transactions from the exchange’s Bitcoin wallets to external wallets, known as “transaction malleability”.

An individual could request bitcoins from an exchange or wallet service, alter the resulting transaction’s hash before inclusion in the blockchain, then contact the issuing service while claiming the transaction did not proceed. If the alteration fails, the user can simply send the bitcoins back and try again until successful.

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