TOKYO, Feb. 25 (UPI) -- Uncertainty surrounds the future of bitcoin exchange Mt. Gox after it shut down its website Tuesday and and ceased bitcoin trading.
The company seems to have gone underground and has not communicated or commented on any of these recent developments. A document, which looks like a Mt. Gox internal memo, has been circulating the internet alleging that the exchange may have lost 744,000 bitcoins in theft over several years.
Six bitcoin companies released a joint statement condemning Mt. Gox's handling of its exchange.
"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. Mt. Gox has confirmed its issues in private discussions with other members of the bitcoin community"
It seems companies are worried that Mt. Gox's actions could reflect badly on the entire Bitcoin community, which has faced skepticism for several quarters. Apart from Mt. Gox's actions, the arrest of former Bitcoin Foundation executive Charles Shrem for money laundering and black market website Silk Road, which used bit coins to trade illicit and illegal items, being shut down by federal authorities has cast aspersions on the validity of the crypto currency.
The internal memo was published by San Francisco-based entrepreneur Ryan Selkis, who writes the blog 'The Two-Bit Idiot.' According to Selkis, he has confirmed the authenticity of the document with two independent sources. The document also alleged that the company was about to be acquired by another company.
Tuesday's developments follow Mt. Gox CEO Mark Karpeles' resignation from the Bitcoin Foundation Monday and the company deleting all its Twitter posts.
But a few questions remain unanswered -- Who is controlling the bitcoins allegedly lost by Mt. Gox and would Mt. Gox users be able to access their bitcoin wallets?
[WSJ] [The Coinbase Blog]
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