Bitcoin exchange Mt.Gox insolvency crisis confirms inability to resume operations

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Zhang Zhu Zhixu

As the world's largest bitcoin exchange, it is now in the midst of a bankruptcy crisis. The collapse of the Mt.Gox platform, what does it mean for the bitcoin industry? How will the Bitcoin market be affected?

February 25, a bitcoin player said in the forum, Mt.Gox due to system loopholes, loss of a large number of Bitcoin, can not compensate for customer losses, the application for bankruptcy protection.

Soon, the domestic bitcoin trading website BTC China, in conjunction with 5 other foreign Bitcoin platforms (Kraken, Coinbase, Bitstamp, Blockchain,circle), issued a joint statement on Mt.Gox (hereinafter "the statement"), Discuss Mt.Gox's "bankruptcy" problem.

Ling Ai, vice president of BTC, told reporters that the six platforms had made a joint statement because of the fact that more information had been available from a wide range of channels, proving that Mt.Gox could not resume operations again.

After the 21st century Economic report reporter confirmed that the Mt.Gox website, its homepage page only presents a blank, the site does not have any content.

Indeed, the Mt.Gox crisis is not without warning. Since last summer, the platform's suspension of customer-mention events began to occur irregularly.

At the beginning of February this year, Mt.Gox to the technical failure of the user to stop the service. However, the bitcoin in China has not been much affected by the price, basically maintained at 5000 yuan level fluctuations.

February 10, Mt.Gox again issued a bulletin explaining that the technology failure originated bitcoin system software is called "Transaction ductility" loophole, and will continue to suspend Bitcoin until technical issues are resolved. According to the reporter understands, the so-called trade ductility loophole is actually the platform in the extraction bit currency link easy to be exploited by the hacker, uses the same TX code repeatedly to withdraw the currency. The Mt.Gox trading price fell to $500 trillion on the same day, hitting historic lows.

In the same period, the second largest Bitcoin trading platform in Europe, BTC-E trading price was once "collapsed", from 665 U.S. dollars to 102 U.S. dollars, a decline of 85%. The main reason for the slump is that the Mt.Gox will continue to suspend users and the spread of market panic.

10 days later Mt.Gox fruit again issued a notice, said that the present will be delayed again. In the meantime, the platform's bitcoin bid plunged to $91 trillion, and domestic Bitcoin platform offers were not spared.

According to foreign media reports, Mt.Gox CEO Mark Capelles (Mark Karpeles) has announced his withdrawal from the Bitcoin Foundation in his blog recently. Bitcoin sponsor, the bitcoin trading data provider, also showed that Mt.Gox's bitcoin transaction stopped at 11 o'clock in the morning in Tokyo time of Tuesday.

Subsequently, the domestic bitcoin trading website BTC China and other 6 Bitcoin platform issued the above statement to discuss the Mt.Gox "bankruptcy" problem.

"The unfortunate breach of the Mt.Gox has undermined the trust of the client," the statement said. But this is only the company's independent behavior, does not represent bitcoin and the entire digital currency industry value and rebound strength. There are still hundreds of responsible Bitcoin companies that are worth the trust of investors. ”

The joint statement reveals the concerns of the industry, and it is difficult to gauge the extent to which the "first fallen giant" will damage the Bitcoin business.

Ling Ai said that the current can be confirmed that the Mt.Gox has not been able to resume operations, but the platform can eventually successfully apply for bankruptcy, in view of the special nature of the goods engaged in trading, he can not give a definitive result.

In other media reports, some Mt.Gox global users have applied to Japan's financial regulators to request intervention. But Japan's financial regulator rejected it, saying customers should personally bear the risks and responsibilities of the Bitcoin exchange.