Mt. Gox Bitcoin Exchange website went offline

The website of the Tokyo-based Mt. Gox, the world’s largest bitcoin exchange went offline on Tuesday, amid Allegations of $350 Million Hack.

The website of the Tokyo-based exchange has been offline since at least 10:30 p.m. Eastern time on Monday. Mt. Gox has not issued any statement about reasons behind the site going offline and whether it would be back at any time.

The Bitcoin Foundation has made statement about the situation, saying it appears Gox may be insolvent:

“We are shocked to learn about Mt. Gox’s alleged insolvency. While we are unable to comment on whether or not Mt. Gox’s business operations employed operational best practices and reasonable accounting procedures, we can assure the public that the Bitcoin protocol is functioning properly.”

Bitcoin prices dropped as much as 14% to $465, a level not seen since mid-November.

Mt. Gox’s problems began on February 7, when it was forced to pause all Bitcoin withdrawals, due to technical issues.

Six other major Bitcoin exchanges, including Bitstamp, Kraken and BTC China issued a joint statement saying: “This tragic violation of the trust of users of Mt. Gox was the result of one company’s actions and does not reflect the resilience or value of Bitcoin and the digital currency industry”.

“As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today,” the statement continued.

“We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that Bitcoin offers as the future of payment in the internet age”.

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