Mt. Gox, once the leading Bitcoin exchange, has given up its plans to rebuild following a devastating data breach in February. It has requested that a Tokyo court allow it to liquidate.
On February 28, Mt. Gox filed for bankruptcy just days after going offline due to security concerns. Among the assets that went missing were 850,000 bitcoins, valued at close to half a million dollars at the time (200,000 were later recovered). Hackers also might have stolen millions in liquid assets.
The resulting public relations nightmare caused bitcoin prices to dip and ruined Mt. Gox’s credibility as a secure place to store cryptocurrency. According to The Wall Street Journal, “the complexity of the procedure—including the difficulty of holding meetings with creditors spread around the world—as well as the lack of realistic rehabilitation plans for the Tokyo-based exchange” prevent Mt. Gox from regaining its foothold.
This article is from the archive of our partner The Wire.