Mt. Gox Files for Bankruptcy After Losing Bitcoin

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Feb. 28 (Bloomberg) –- In today’s “Global Outlook,” Bloomberg’s Julie Hyman, Trish Regan and Carter Dougherty take a look at what happened to all the bitcoin from Mt. Gox on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Today mt.

Gox, the world's largest former bitcoin exchange file for bankruptcy in japan.

Mt.

gox lost 750,000 bitcoins belonging to its customers and 100,000 of its own bitcoins.

Our reporter has been tracking the bitcoin saga for a while now.

My favorite part of this is mt.

Gox saying that the company believes there's a high possibility that bitcoins were stolen.

Yeah.

If they weren't stolen, where could they -- it reads sort of like a comedy of errors, they just disappeared.

It reads a bit like a punchdrunk boxer sort of shocked at what happened.

They don't seem to know precisely.

It will take a lot of smart techies, a good amount of time to figure it out.

There's probably some cash gone to.

If you still bitcoin, what do you do with it?

There's only so many places you can spend it and if you get this amount of bitcoin turning up somewhere, there is so little of it, wouldn't that be obvious?

The beauty of this crime, if we can call it that, is that it was done over a long period of time, possibly years.

So it may already be spent.

It trickles into the bitcoin ecosystem.

Who knows?

There is a cottage industry of people trying to assemble the bitcoin addresses where this money came from, see if they can track it through this public ledger.

Can you track it?

There's a dispute as to how anonymous this is.

People in the bitcoin community will tell you it's not that anonymous.

Does that mean we can actually trace it back to its original home on mt.

Gox?

The tricky part of that is that when you entrust your bitcoin to mt.

Gox, they are putting it into a company controlled wallet so they can resolve trades.

Somebody wants to sell bitcoin for dollars, they pull out of that.

They want to buy it, they pull out of that.

First of all, you need to know exactly what wallet addresses that mt.

Gox was using.

So far they are not talking.

This would have to start with the company making a good-faith effort to figure this out.

There have been questions about the viability of bitcoins ever since their inception and even more questions raised because of what has happened in mt.

Gox.

Not just for mt.

Gox, but what is the next move in the bitcoin world as a result of all of this?

Do we see more regulation attempted in some places?

We have already seen the prices fall.

What is the next thing?

The next thing is already underway, a massive effort at damage control and proving that other bitcoin companies do not suffer from the same problems that mt.

Gox did.

That will include things like security aduits, where companies make them public.

They will attempt to cauterize the damage.

It is safe to say that this is the end of the kind of amateur hour of a couple of guys working on computer code, pulling a few all nighters and setting up an exchange.

At the end of the day, it is a currency.

A currency needs to be regulated because people need to know if they can trust it.

We did hear yellen say yesterday that she did not think it needs to be regulated -- they were looking into it.

Doesn't need to happen, carter?

And needs to happen and there is no regulator who does not think that consumer protection is the main focus of this.

Bloomberg's carter dougherty, thanks so much.

Coming up next, and your

This text has been automatically generated. It may not be 100% accurate.

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