MtGox gives bankruptcy details

[DVTimes]

More details have emerged into what led MtGox, one of the largest Bitcoin exchanges, to file for bankruptcy.

There was a "high probability" that the bitcoins had been stolen through a bug in MtGox's systems, the firm said in a statement.

Investigations to find the culprits are under way, it added.

MtGox filed for bankruptcy in Japan on Friday. Days earlier the site had closed down after losing an estimated 750,000 of its customers' bitcoins.

Much of the statement released on MtGox's website confirmed details contained in a leaked document that surfaced just days before the bankruptcy application.

'Crimes punished'
As well as the 750,000 bitcoins belonging to customers that were lost, the company said it had also lost approximately 100,000 of its own. This amounts to nearly $500m (£300m).

It also said MtGox accounts held with financial institutions currently contained approximately 2.8bn yen (£16.5m) less than the amount MtGox users had deposited.

http://www.bbc.co.uk/news/technology-26420932

[DVTimes]

[Translation from the Japanese]
February 28, 2014

To anyone concerned
Mark Karpeles
Representative Director
MtGox Co., Ltd.
2-11-5 Shibuya
Shibuya-ku, Tokyo

ANNOUNCEMENT REGARDING AN APPLICATION FOR COMMENCEMENT OF A PROCEDURE OF CIVIL REHABILITATION

MtGox Co., Ltd. Made today an application for commencement of a procedure of civil rehabilitation (minji saisei) at the Tokyo District Court. This application was accepted on the same day. Further, MtGox Co., Ltd is under several orders issued by the Court:. a preservative order prohibiting it from paying its debts, transferring its assets or establishing security over its assets, an order establishing a comprehensive prohibition of forced attachment of its assets by its creditors and a supervisory order ordering supervision by a supervisory committee In Consequence, MtGox hereby informs you as FOLLOWS.
We first Express Our most sincere Regrets and Apologies for this situation and for Causing so much Inconvenience to all users and Our Other interested Parties. We Will Respect fully the Above Orders and Maintain Our assets with all the necessary care.

Financial situation, reasons and timeline leading to this application
. (1) As of now, the liabilities of MtGox Co, Ltd exceed its assets and its financial situation is as follows:

Total amount of assets 3,841,866,163
Total amount of current liabilities 6,501,119,371
.. (2) The increase of current liabilities may be linked to a loss of bitcoins and customer funds These are now investigated by an expert and all efforts are made to discover the truth This application was prompted by the following troubles:

At the start of February 2014, illegal access through the abuse of a bug in the bitcoin system Resulted in an Increase in incomplete bitcoin Transfer transactions and we Discovered That There WAS a Possibility That Bitcoins had Illicitly Been Moved through the abuse of this bug.

https://www.mtgox.com/

[ruff]

The only people that care about Mt. Gox are the ones that left their money there. No one else.

[Harmon]

[nexcom28]

Originally Posted by Harmon

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