Bitcoin exchange Mt. Gox files for bankruptcy following data breach

Likely to see an influx of investor suits following the event

Mt. Gox, a digital currency exchange, has filed for bankruptcy in Japan as of Feb. 28. The move comes following a cyber-attack that claimed 750,000 bitcoins from the service’s supposedly secure systems. Reuters reports that at a current unit price of $565, the potential loss makes up approximately $480 million, roughly seven percent of the global supply of bitcoins.

Appearing at a press conference following the filing, CEO Mark Karpeles apologized for the lapse in security, and emphasized that the breach should not impact investor’s views about the safety of bitcoin. "First of all, I'm very sorry," he said. "The bitcoin industry is healthy and it is growing. It will continue, and reducing the impact is the most important point," Karpeles said.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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