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Mt. Gox issues new statement on website

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March 3
4:33 PM 2014

Tokyo-based Bitcoin exchange website Mt. Gox has posted a new statement on its website, TechCrunch reported.

The site, which sought bankruptcy protection last week, gave more clarification on the situation the company is in on the latest statement. However, majority of what it said merely validated the document that had been earlier leaked about the number of Bitcoins that the site had lost, the report said.

In the statement, Mt. Gox said, "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 been illicitly moved through the abuse of this bug. As a result of our internal investigation, we found that a large amount of bitcoins had disappeared. Although the complete extent is not yet known, we found that approximately 750,000 bitcoins deposited by users and approximately 100,000 bitcoins belonging to us had disappeared."

This translates to an overall Bitcoin loss of over $500 million, with the customers bitcoins worth $446 million, TechCrunch reported.

Meanwhile, Mt. Gox has already set up a call center which begins operations today to respond to all questions about the company. Concerned individuals can call up the call center number at +81 3-4588-3921. It will be open from Monday to Friday from 10 AM to 5 PM Japan Time, the statement said.

TechCrunch wrote that while Mt. Gox had good intentions, it had was a "technically and financially incompetent player in the nascent Bitcoin universe." The crisis that Mt. Gox faces could give an opportunity for other exchanges to fill in the void, the report said.

Mt. Gox reassured everyone that they will be doing everything to pay back their creditors. The statement said, "All efforts will now be made to restore the business and recover damages to repay debts to creditors. We hope for the understanding and cooperation of all."

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