The Bitcoin exchange company, Mt. Gox, has filed for bankruptcy protection in Tokyo, Japan today.
According to the Wall Street Journal, Mt. Gox and its CEO, Mark KarpelÃ¨s, was handling more than 80% of all Bitcoin trades at its peak before ending all trades and taking down its website a week ago.
The exchange says it lost 750,000 of its customers bitcoins in addition to the 100,000 of its own to theft.
Mt. Gox had outstanding debt of about Â¥6.5 billion ($63.6 million) with assets worth Â¥3.84 billion.
“There was some weakness in the system, and the bitcoins have disappeared. I apologize for causing trouble,” KarpelÃ¨s said during the news conference in Tokyo. KarpelÃ¨s claimed the fraudulent withdrawals were the result of technical issues that allowed hackers to steal the bitcoins from the exchange.
This, along with improper registration as a money-services business in the US, has prompted a Federal investigation into the exchange company.
The Bitcoin community has been distancing itself from KarpelÃ¨s and Mt. Gox, a former Magic: The Gathering card-trading site, since the incident began in early February, with a statement from various Bitcoin organizations declaring his actions a breach of trust given to him by the community.