ON AIR NOW

LISTEN NOW

Weather

cloudy-day Created with Sketch.
83°
Scattered Clouds
H 86° L 68°
  • cloudy-day Created with Sketch.
    83°
    Current Conditions
    Mostly Cloudy. H 86° L 68°
  • cloudy-day Created with Sketch.
    80°
    Evening
    Mostly Cloudy. H 86° L 68°
  • cloudy-day Created with Sketch.
    69°
    Morning
    Mostly Cloudy. H 86° L 62°
LISTEN
PAUSE
ERROR

The latest top stories

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest traffic report

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest forecast

00:00 | 00:00

National
Bitcoin exchange Mt. Gox disappears, along with CEO
Close

Bitcoin exchange Mt. Gox disappears, along with CEO

Bitcoin exchange Mt. Gox disappears, along with CEO
Photo Credit: YOSHIKAZU TSUNO
This photo illustration shows a man looking at the bitcoin exchange website of MtGox in Tokyo on February 25, 2014. The website of Tokyo-based bitcoin exchange MtGox went down on February 25, after the value of the virtual unit sank to about a quarter of that on other platforms and Japanese regulators said they were unable to step in. AFP PHOTO / Yoshikazu TSUNO (Photo credit should read YOSHIKAZU TSUNO/AFP/Getty Images)

Bitcoin exchange Mt. Gox disappears, along with CEO

Things might've just gotten real for virtual currency — and it's not a good thing. Bitcoin's largest exchange has disappeared from the Internet — and its CEO is MIA.

"Mt. Gox has gone totally dark. If you try to load their website, you will not find anything. Mark Karpeles, CEO of Mt. Gox ... He cannot be found. He has resigned from the parent Bitcoin Foundation." (Via Bloomberg)

"Folks say they don't expect to get their money back. The six other leading bitcoin exchanges are trying to distance themselves from Mt. Gox." (Via Fox Business)

According to the New York Times, the company lost almost 750,000 bitcoins to hackers, but the theft went unnoticed for years.  That's equal to about $350 million worth of bitcoins and about 6 percent of the 12.4 million coins in circulation.

No one knows exactly how the coins were stolen and the company has yet to respond to requests for comment. However, Wired believes it might have found a document with some answers.

The document is said to be an internal memo from Gox.  It shows Gox knew it was subject to theft but believed it could resolve it internally.  Then it admits it has become clear 744,408 bitcoins are missing and it went unnoticed for several years.

The document goes on to outline a four-part strategy:

- Immediately reduce liabilities with partners

- Shut down Mt. Gox for one month while it is restructured & rebranded

- Change communications strategies to a more open format with constant updates

- Announce a new team of trusted business people and talented developers.

The document says the coins were stolen through a leak in the hot wallet, which is connected to the web, that allowed hackers to exploit Gox’s cold storage. In theory, this should have been impossible because cold storage — by definition — is disconnected from the Internet. Though some believe the leak could have been caused by the hot storage automatically refilling itself from the cold storage.

If the document is real, we may see Mt. Gox return at some point — although some see the currency itself as fatally flawed. 

Om Malik, founder of Gigaom, says he’s not surprised it’s getting ugly. He points to the similar ambitions of virtual currencies Flooz and Beenz in the early 2000s.

They each had similar ambitions to Bitcoin only to flop when Flooz was investigated by the FBI and Beenz fell apart following the burst of the dot com bubble.

The CEOs of several other Bitcoin exchanges released a statement saying the actions of one company do not reflect the value of Bitcoin and the digital currency industry.  In the statement, they pledge to work together to re-establish trust in Bitcoin exchanges.

It remains unclear how many Bitcoins customers of Mt. Gox will be able to retrieve or when they will be able to retrieve them.

Read More
VIEW COMMENTS

There are no comments yet. Be the first to post your thoughts. or Register.

The Latest News Headlines

  • A person walking in a Northwest Jacksonville neighborhood makes an unsettling discovery. We’re told a woman’s body was found off Railway Avenue, near Harding Avenue. The victim is a white female between 20 and 40 years old, according to JSO Sergeant Chuck Ford.  There are no obvious indications of the cause of death, so Ford says they are treating this like a homicide investigation. JSO is processing the scene and speaking with people in the area in an effort to piece together exactly what happened.  Ford says they will wait for findings from the Medical Examiner to know the cause of death. It’s unclear how long the body has been there, but Ford says it doesn’t appear to have been too long, as they were able to get some visual clues about the race, age, and gender of the victim.
  • A domestic dispute between a boyfriend and girlfriend in Puerto Rico reportedly led to the brutal death of the woman’s Chihuahua.  According to the BBC, Luis Arroyo, 40, killed the 2-month-old puppy by biting off its head on Feb. 4 in the mountain town of Lares.  >> Read more trending news Arroyo, who was unemployed, had been living with his 38-year-old girlfriend for six months when he punched her and decapitated her puppy, the report said. He pleaded guilty to charges of domestic abuse and animal abuse, and was sentenced to seven years in prison, the BBC reported. Arroyo is also required to pay a $3,000 fine relating to the case, according to the BBC. Read more here.
  • A Virginia family on a trip to New York returned home to find their apartment burglarized and vandalized. >> Read more trending news  The family, which is Muslim and had immigrated from Pakistan last year, discovered profanity-laden graffiti scrawled on the walls of their home, a Quran torn and artwork that contained religious calligraphy damaged, CNN reported. They have requested that their last name not be released. Their green cards were stolen, and more than $25,000 worth of gold they had received as wedding gifts was also taken, WRC reported.  But the family doesn’t think that they were targeted because of their religion; rather they believe the burglars vandalized the apartment and their belongings once they discovered the family was Muslim. The break-in happened sometime between March 24 and March 27, CNN reported. The family says they will not live in the apartment after the burglary, but will plan on finding a new place to live in the same area.
  • A mother was charged Thursday in connection with the death of her 4-year-old son in Butler County, Pennsylvania. >> Read more trending news MacKenzie Peters was charged with felony child endangerment in connection with Bentley Miller’s death. Peters' boyfriend, 20-year-old Keith Lambing, is charged with criminal homicide and aggravated indecent assault in connection with the boy's death.  According to a criminal complaint obtained by WPXI, Miller suffered abuse several days before he died. Police found a burn mark on the boy's hand, which police believe was from an iron. Investigators said Peters knew about the burn, but did not seek medical treatment. The district attorney said he has no proof that Peters abused the child, but is not ruling out that she knew about past physical injuries. The complaint also said that investigators found drug paraphernalia in the motel room where Peters, Lambing, Miller and Peters' 4-year-old child had been staying. Lambing’s mother, 43-year-old Kristen Lee Herold, faces charges of child endangerment. RELATED: Woman charged in connection with 4-year-old boy's death; charges to be filed against man The district attorney said Lambing had been watching the boy for a few hours at the Super 8 Motel in Butler while Peters was at work. According to court papers, Bentley suffered substantial injuries to his body, including cuts and bruises, and was sexually assaulted. Investigators said Lambing called his mother, Herold, because the boy was in need of medical attention. RAW VIDEO: News conference on search for man after death of 4-year-old RELATED: Vigil held for 4-year-old boy, man wanted for questioning in custody Police said Herold was taking Bentley to his father's house -- not to a hospital, as initially reported -- when the boy stopped breathing. Herold pulled into the parking lot of a credit union on Hanson and called 911, stating the boy was bleeding and unresponsive, police said.   Police said that when the boy was taken by ambulance, Herold allegedly went back to the motel to alert her son and to help him escape. Police later confirmed that the boy died of severe blood loss due to forced sodomy. Police said they found Herold and Lambing hiding in an attic in a home in Butler on Wednesday. 'It's unthinkable, what happened to this little boy,' District Attorney Richard Goldinger said Monday. 'We're just going to try to get justice for him and his family.”

The Latest News Videos