Mt. Gox CEO: We Traded Non-Existant Bitcoins for Two Weeks

Mt. GoxMtGox continued trading for at least two weeks despite knowing that it did not hold enough bitcoins to return every customer their money, according to a deposition from the CEO of the embattled bitcoin exchange. Mark Karpeles, MtGox’s chief executive, gave the deposition to the Northern District of Texas bankruptcy court on Monday 9 March. In it, he explains: “On February 7, 2014, all bitcoin withdrawals were halted by MtGox due to the theft or disappearance of hundreds of thousands of bitcoins owned by MtGox customers as well as MtGox itself.” It was known before Karpeles’ deposition that MtGox had blamed bitcoin losses due to hacking for the closure of bitcoin withdrawals. But the document shows that it was another two weeks before MtGox halted trading on the exchange itself, when it closed the site without warning on February 25. In that period, MtGox continued to accept trades and earn commission on them.

Read the full story at The Guardian.

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