The website of Mt Gox, one of the major exchange for Bitcoin, is not longer online amid reports it suffered a debilitating theft, a new setback for efforts to gain legitimacy for the virtual currency
Embattled Bitcoin exchange Mt Gox has largely vanished from the Internet amid accusations that the exchange is insolvent after a years-long theft that resulted in the loss of hundreds of millions of dollars, says CNET in a report.
According to media reports, the web site for the Tokyo-based exchange has been wiped clean, as has its official Twitter feed. The disappearance of the site follows the resignation Sunday of Mt Gox from the board of the Bitcoin Foundation, a group seeking legitimacy for the currency.
Mt Gox suspended cash withdrawals on 7th February, claiming there was a problem with the programme that powers the currency and allows it to be transferred between users or exchanged for goods and services. The value of the crypto-unit has been falling ever since.
Around midday on Tuesday, a Bitcoin was worth $135, compared with the $522 quoted by the CoinDesk Bitcoin Price Index, which tracks the price of the currency on major exchanges. In January, a Bitcoin was worth more than $900 at Mt Gox, which is one of the world's oldest exchanges for the unit, says a report from AlJazeera.com.
Separately, several Bitcoin exchanges released a joint statement saying that funds under their control are held securely. The Bitcoin operators said they are working to "re-establish the trust squandered" by the failings of Mt Gox, which should not be considered a reflection of the value of Bitcoin or the digital currency industry.
Bitcoin was started in 2009 as a currency free from government controls. It had been inching toward broader acceptance despite wild swings in value in the past year. For most of the currency's history, each digital coin had been worth less than $10.
Last month, Reserve Bank of India (RBI) has cautioned users, holders and traders of virtual currencies (VC) like Bitcoin, Litecoin, BBQcoin and Dogecoin and is examining the legal and regulatory framework of VCs. In a press release, RBI stated that Bitcoin and other VCs are exposed to potential financial, operational, legal, customer protection and security related risks.
Earlier, RBI had said that VC including Bitcoin may pose several other risks to users, including the following:
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