Mark Karpeles, founder of the now bankrupt Bitcoin exchange MtGox, is spending his days fending off creditors and posting cat pictures on his Twitter feed as he wallows in the mired wake of his business failure.
MtGox Former Owner's bankruptcy
After “losing” $341 million in a digital currency that is known to have a tracking capability, Karpeles declared bankruptcy. The value of his company is estimated at $750,000 but the current bid at Heritage Auctions is $185,000.
Karpeles could explain why, where or how $341 million disappeared from his business, but he was willing to split the proceeds from the sale of the firm with creditors, according to a report.
Mark Karpeles, Mt Gox chief executive officer, said in a sworn statement, “These events caused among others Mt Gox to become insolvent.”
Mt Gox discontinued customer withdrawals
As previously reported in ValueWalk, on February 7, the date the disappearance was discovered, Mt Gox discontinued customer withdrawals from the exchange. However, customers continued to trade on the exchange until February 24. Nearly 750,000 customer Bitcoins were lost along with 100,000 of Mt Gox’s own Bitcoin stash, according to a Bloomberg report. The total amount of Bitcoin lost in the theft represents around 7% of all of the digital currency in existence. By contrast, the amount expected to be recovered by creditors in the Bitcoin auction is expected to translate into approximately 1,200 bitcoin.
Karpeles didn’t intend any of this to transpire as it did, he claims.
“We are hoping, with the sale of Bitcoins.com, to provide some relief to the people impacted by the Mt. Gox bankruptcy,” said Karpeles in the press release. “And will be putting at least half of the sale amount toward that purpose.”
MtGox was originally started as an exchange for magic cards and the name of the firm is an acronym for Magic, the gathering online exchange. It was only later that the firm adopted its new identity. Much like an online gamer might strap on a new gaming handle, MtGox shed its playing card past and hopped on the Bitcoin bandwagon. This bandwagon led to the unexplained loss of $341 million without much in the way of accountability or answers for those concerned.