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750,000 Bitcoins Hacked Because of a Bug in System

750,000 Bitcoins Hacked Because of a Bug in System


750,000 Bitcoins Hacked Because of a Bug in System

Bitcoins, the electronic currency is really facing immense problems these days worldwide. Mt. Gox, a troubled Bitcoin exchange that was one of the largest of its kind once, has filed a case for bankruptcy protection last week. According to news, the exchange released the statement that confirms the fact that nearly 750,000 Bitcoins deposited by users, and around 1 million Bitcoins belong to Mt. Gox have been grabbed by third party hackers.

This news was leaked from the document from the office of Mt. Gox and its circulating in the community of Bitcoins since last week. That document suggested that 7.5 million Bitcoins have been lost.

Mt. Gox notes in the financial situation released on the site that the difference between the cash held in financial institutions and the money deposited from the Mt. Gox users come in about 2.8 billion yen that amount to nearly $27.6 million. However, the exact amount of Bitcoins that disappeared and the missing deposited funds are not confirmed as yet.

Mark Karpeles, CEO of Mt. Gox says that there were huge chances that Bitcoins have been stolen due to bugs present in the system. It has been assumed that at the start of February 2014, the abuse from the bug in the Bitcoin system has resulted in the incomplete transactions. There is a great probability that a large number of Bitcoins have been moved by the bug in the system.

The CEO revealed his views that the problem might have been caused by the hacking from the third parties also. They have asked experts to investigate the scenario as a probable criminal case, and to undertake the proper procedures in this regard.

The sudden shut down of Mt. Gox and filing of the case of Bankruptcy has severely impeded the growth of the Bitcoin trading system. Pre-empting such a reaction, the leader of the six major world’s biggest Bitcoin exchanges earlier wrote a letter in response to the claims of Mt. Gox in a bid to reassure Bitcoin investor.

Mt. Gox assured the creditors that efforts will be made to restore the business to the previous levels and the debts of creditors will be paid. The business must be continued to increase the repayments to its creditors, the company has asked for bankruptcy protection. It is also well known as civil rehabilitation in Japan.

About Fahad Saleem

A full time freelance blogger, Fahad is writing for 5 of the mainstream tech blogs these days. Loves having tea again and again and struggling with his "excess of sleep problem" for the past 4 years.

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