MtGox Kept Trading Bitcoins Even After Knowing Their Loss

Credit FraudBitcoin exchange MtGox continued trading bitcoins on its platform even two weeks after knowing that its bitcoins had been stolen and it will not be able to pay every customer.

Earlier MtGox’s CEO Mark Karpeles had said that they stopped Bitcoin withdrawals on February 7, 2014 after coming to know of theft of millions of worth bitcoins. MtGox then shut down the website and bitcoin exchange too on February 25th without any warning.

It was during February 7th and February 25th that MtGox continued to accept new bitcoin trades on its platform and getting commission. Users were not able to withdraw their bitcoins but they could sell their bitcoins during this  period. Resultantly the price of bitcoins on exchange plummeted down which meant less liabilities for MtGox.

ComputerWorld has estimated that MtGox earned $1 million commission during these two weeks while knowing already that it will not be possible for it to pay its customers their bitcoins.

MtGox has claimed that the money had been stolen but it has not given any reason for $27 million difference between the amount that was with it and the customers’ stated cash deposit.

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