Entertainment, Technology Security

Mt.Gox Drama Continues, Site Shuts Down, Users Lose Over $400M!

The popular BitCoin exchange, Mt.Gox has today gone offline amid allegations that they had been ‘hacked’ and that over $400 million worth of BitCoins had been stolen and likely will never be returned to users. According to Forbes, this hack is the reason for the Mt.Gox exchange going offline, even though, once again, users are questioning whether or not Mt.Gox’s founders are the ones that have run off with the Bitcoins. The truth is that because these currencies are so decentralized, virtually anything can be done with that money and many people are simply trusting these exchanges to be honest with their money.

What makes this behavior all the more shady is the fact that Mt.Gox had been criticized recently by users of the exchange that Mt.Gox had suddenly suspended all transactions. And some users were even demanding that Mt.Gox explain themselves, and then Mt.Gox said that they had some sort of a programming issue that made tracking Bitcoins difficult and that they needed to rework their code in order to make sure everything was right. While this delay happened, Mt.Gox’s CEO Mark Karpeles resigned from the Bitcoin Foundation, which made a lot of people wonder what the hell was going on. Until today’s revelations of the fact that Mt.Gox had completely gone offline, without any warning or explanation.

The guys at Coinbase have come together to make a joint statement reaffirming their support of the currency and their goal to improve the trust in the currency. After all of these latest revelations, BitCoin is currently trading at $500, which is well below its historical highs and may go lower if the losses of users’ BitCoins is confirmed. Hopefully the guys running the exchange didn’t just take the money and run, but if they did there is a good chance that they could have a real storm coming their way. This does not help the legitimacy of cryptocurrencies nor the negative stories that have been coming out in the past months.

Hopefully everything turns out for the best, but right now things aren’t looking very good for people with money in Mt.Gox and it may be even worse if they had been expecting those Bitcoins to actually yield them cash. Not just that, but if they do eventually get their Bitcoins back, they will probably be getting them back for a lower price than they had put them in for, even though they couldn’t actually access them at all.