MtGox, the embattled Bitcoin exchange based in Japan, has filed for bankruptcy protection citing that it has lost 850,000 bitcoins.
Earlier this week, we reported that MtGox was in its last days. Now we are seeing the final nail in the coffin.
The Bitcoin loss is comprised of approximately 750,000 BTC entrusted to MtGox by its customers and 100,000 BTC from its own holdings. In addition, MtGox's attorney disclosed that the company had debt obligations of ¥6.5 billion ($63.6 million) with assets worth ¥3.84 billion.
This is a tragic outcome for MtGox customers who have lost their investments, and a blow to the credibility of the Bitcoin ecosystem overall. But many in the Bitcoin community are looking forward.
At the same time, MtGox customers need to understand what exactly happened to their investments.
Now that MtGox is seeking bankruptcy protection, it looks like it will be a matter for the courts to decide.