VENTURE CAPITAL POST

American and Canadian Bitcoin traders and investors have agreed to settle the class-action lawsuits they have filed against the bankrupt Tokyo, Japan-based Bitcoin exchange Mt Gox in return for a 16.5% stake in the firm.

Tokyo, Japan-based Bitcoin exchange Mt Gox will file for liquidation in Tokyo instead of its initial plan of rebuilding the firm under bankruptcy protection after a bug reportedly brought the site down.

Bitcoin derivatives trading platform BTC.sx has secured funding from Seedcoin Fund, BTC.sx Chief Operating Officer George Samman told Reuters on Tuesday.

Three people told Reuters that employees already approached Chief Executive Officer Mark Karpeles in 2012 about how the bitcoin exchange was protecting the money of its clients.

The Tokyo District Court has extended the deadline of the investigation on the reason behind the failure of Tokyo-based Mt. Gox to May 9, Reuters reported.

Developers have modified the open source Bitcoin software and released a new version to resolve the transaction flaws and to prevent a Mt Gox-like incident from happening again.

Mt. Gox said it had found 200,000 Bitcoins in a wallet that it used before June 2011. The discovery was made on March 7, a week after it had filed for bankruptcy, Reuters reported

Facebook Secutiry Director Ryan McGeehan annouced that he is leaving in early April to take a security-related position at San Francisco, US-based Bitcoin startup Coinbase.

The recent drawbacks faced by Bitcoin has not deterred investors from continuing to support and make investments in ventures related to the crypto-currency, TechCrunch reported.

US-based investment firms Benchmark Capital, Fortress Investment Group, and Ribbit Capital are buying a stake in Pantera Capital's Bitcoin fund called Pantera Bitcoin and committed to conduct virtual currency transactions through Pantera.

Mt. Gox has brought back its login screen so that users can check their Bitcoin balances. However, it's still not certain when the digital currency platform will allow users to access their digital money, TechCrunch reported.

According to security researchers at Securelist, the data stolen from the computer owned by Mt Gox Chief Operating Officer Mark Karpeles' computer contained malware that pretended to be a back-end app for Mt Gox transactions but actually stole users' Bitcoins.

A class action lawsuit was lodged in an Ontario Superior Court of Justice against Mt. Gox and Mizuho Bank Ltd by Bitcoin investors from Canada, Reuters reported.

After the collapse of Bitcoin exchange, the government of Japan decided not to regulate Bitcoin transactions because they do not consider it a currency, but a commodity that will be subject to sales tax.

Just less than a week after Mt. Gox filed for bankruptcy for losing 850,000 bitcoins on its website, Flexcoin is closing shop after its "hot wallet" got hacked.