Mt. Gox shutsdown

USPA NEWS - One of the largest Bitcoin exchangers has closed it door as of Tuesday. Facing a potential loss of over $400 million worth of bitcoins seems to be the net result of costly fiscal mismanagement at Mt. Gox.

Mt. Gox closed earlier due to what was then reported as a loophole in the bitcoin structure which would enable a user to request double payments from 3rd party wallets by alter some code. Now Mt. Gox is blaming a computer hack for its current situation. Difficult to believe that a hack could be maintains for such a long time as to siphon off millions without anyone knowing or being alerted to the fact. Cash flow seems to have play a large part in the undoing of Mt. Gox.

Mt. Gox collected less than $400,000 in revenue during 2012, but lost $5 million in 2013 which the U.S. government agents seized for allegedly lying on bank documents. The potential loss is in the neighborhood of some $400 million and seems to have investors holding the bag.

Japanese authorities are mounting their own investigation into Mt. Gox as it was a Tokyo based Bitcoin exchange. U.S. prosecutors have subpoenaed Mt. Gox to retain certain documents as the investigation continues. Chief Cabinet Secretary Yoshihide Suga said that the FSA, Finance Ministry and police a examining the closure of Mt. Gox, but that they did not have responsibility for overseeing Mt. Gox operations.