Anyone holding Bitcoins—or pretty much any cryptocurrency, really—has taken a substantial hit in the last few months, with the exchange rate of dollars to Bitcoins dropping from a high of around $1200 last November to around $550 today. But it’s possible that those whose Bitcoins were parked at the long-troubled Mt. Gox exchange have suffered a near-wipeout, or even a total one, in what may have been the catastrophic theft of some 744,000 Bitcoin from that exchange.
Mt. Gox was the first big Bitcoin exchange; as such it attracted the most attention, the most traffic, and the most trouble. It was hacked repeatedly because, at one time, it was simply where all the Bitcoins were. Most knowledgeable Bitcoin enthusiasts took off for more modern, more reliable exchanges long ago.
Details began to emerge Monday night in a leaked document (“Crisis Strategy Draft”) of at least partial authenticity obtained by blogger Two-Bit Idiot. The document explained that Mt. Gox had been subject to years of uncaught theft. (A Hacker News post later claimed to have restored the redacted slide from the leaked document that detailed the full Mt. Gox financials.)
Mt. Gox CEO Mark Karpeles, who is apparently holed up at home in Tokyo with his cat, has since verified in an IRC chat that the document is “more or less” legitimate, though it was not prepared internally by his embattled firm. He says that he is still trying to save the company: “‘Giving up’ is not part of how I usually do things.”