MtGox Was Still Trading After Having Lost Most of its Bitcoins

By Tom Pritchard on at

It looks like the situation surrounding MtGox just keeps getting worse and worse. It turns out that despite not having enough Bitcoins to return to its customers, MtGox continued trading anyway.

Previously it had been alleged that MtGox was closed down due to hacking, but now it appears that the Bitcoin exchange continued trading for at least two weeks after the hack occurred. But appearing at a Bankruptcy court in Texas, MtGox Chief Executive Mark Karpeles claimed that all Bitcoin withdrawals were suspended on the 7th February after hundreds of thousands of Bitcoins left in MtGox's care disappeared.

During this period users were unable to withdraw Bitcoins, but could still sell them and attempt to get hold of their money. It's no surprise that this week saw a massive increase in Bitcoin sales by MtGox users, which caused Bitcoin's overall value to plummet significantly. During this time MtGox was earning a hefty commission on each sale, with the total estimated to be around $1 million (£600,000). [The Guardian]