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MtGox Bitcoin Exchange Files For Bankruptcy
An application for bankruptcy has been made by lawyers acting on behalf of the owners of Bitcoin exchange MtGox. This news comes shortly after the owners stated that they were attempting to find a "solution to our recent issues" and does nothing to appease those users of the Japanese based company that have money stuck on the now closed Bitcoin exchange. Details of the appeal for bankruptcy are still emerging however it is known that the application has been accepted by a district court in Japan and that the company has stated that it has outstanding debts of £38 million. The move by the lawyers comes after a subpoena against the company was filed by US regulators. The whole MtGox debacle has meant that the price of Bitcoin has fallen sharply from a high of just over $1,000 in November last year, it now stands at around $560 per Bitcoin. In related news authorities in Vietnam have ordered banks that no transactions in the currency are permitted.
It has to be remembered that it is MtGox and the management of that company that are at fault here and not the digital currency Bitcoin and its users. It comes as a huge blow to those who support the currency as on other fronts it continues to grow with more online gaming companies beginning to welcome it. Recently the online casino, sportsbook and racebook BitBet was launched that deals solely in Bitcoin and despite issues with Bitcoin elsewhere that operation continues to grow.
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