Definition of MT. Mount gox’
MT. Mount gox was a Tokyo-based bitcoin exchange, which operated between 2010 and 2014. MT. Mount gox or mtgox, was responsible for more than 70% of transactions in bitcoin at its peak.
The destruction of MT. Mount gox’
The site that became MT. Exchange idea was created by jed McCaleb as a way for fans of the card game “Magic: the gathering” trading cards online.
The name of MT. Mount gox was created as an acronym for “Magic: the gathering online Exchange”. The site was moved to mark Karpeles in 2011, in exchange for six months worth of income. Karpeles became the largest shareholder and CEO.
At its peak, MT. Good was considered the largest bitcoin exchange in the world: processing of 70% to 80% of the trading volume. Processing so many transactions gave MT. To put a huge role in determining the fate of bitcoin. In 2013, for example, it suspended trading for a few days in order to cool the market.
His fame and made him a target for hackers, and MT. Mount gox several times security issues over the years. In 2011, hackers used stolen credentials to transfer bitcoins. In the same year, weaknesses in network protocols and as a result several thousands of bitcoins “lost”.
In the months leading up to February 2014, customers have expressed increasing frustration with the problems of withdrawal. Technical errors did not allow the company to have a clear understanding of the details of the transaction, including uncertainty regarding whether bitcoins have been transferred to digital customers wallets. This issue was the result of an error in the bitcoin software that allows users to modify transaction IDs, sometimes referred to as “plasticity transaction”.
The exchange dealt a fatal blow in February 2014. In early February 2014, the exchange suspended withdrawals after the statement that detected suspicious activity in their e-wallets. The news of the suspension caused the bitcoin price plunging by 20%. The company found that she “lost” more than 850,000 bitcoins, which at that time was more than 6% of all bitcoins in circulation.
And later he was able to find 200,000 bitcoins, the missing 650,000 bitcoins was highly destabilizing effect on the market. The cost of bitcoin is valued at more than $ 450 million, with the loss pushing the MT. Mount gox is in insolvency. The application was filed for bankruptcy in the Tokyo district court, and was ordered to liquidate in April 2014. (See. also: Matt. Mount gox, the former Director General goes on trial in Japan for Bitcoin fraud.)
Because cryptocurrency was new investment, because the trade involved and the company’s customers spread across the world, MT. Bankruptcy officials have become increasingly complex. Japanese bankruptcy laws can be added to the frustration. Estate, MT. The assets of officials have been placed in more than 200 000 bitcoins, worth $ 3.5 billion at the peak of bitcoin in December 2017. This led to a protracted legal battle over the distribution of these assets.
Companies that have signed agreements with the MT. Gox, the such as CoinLab sued for breach of contract. Creditors sued for late payments. More than 24,000 customers lost access to their cash and bitcoins, and many of them have filed lawsuits.
The General public, the collapse of MT. Good, may have served to raise awareness about bitcoin and other cryptocurrencies. The amount of damages in the hundreds of millions of dollars – caught many by surprise, as the cryptocurrency has received high technical and quite obscure for the average investor.