Mt Gox Allowed Trading After Exchange Discovered Loss

According to statements filed in U.S. Bankruptcy Court in Dallas earlier this month, when executives at Japan-based Mt Gox, then the world’s largest Bitcoin exchange, discovered that “hundreds of thousands” of Bitcoin’s had “disappeared,” the exchange continued to allow trading in product they no longer held.

$473 million bankruptcy

Mt. Gox filed for bankruptcy in the U.S. on March 9 after losing $473 million in Bitcoin. The firm also filed for bankruptcy in Japan last month.

Nearly 750,000 customer Bitcoins were lost along with 100,000 of Mt Gox’s own Bitcoin stash, according to a Bloomberg report. The...