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February 27, 2014updated 04 Apr 2017 4:08pm

Japanese authorities launch investigation into MtGox closure

Japanese authorities have begun an investigation into the shock closure of the world's once largest Bitcoin exchange MtGox.

By Hannah Smithies

Japanese authorities have begun an investigation into the shock closure of the world’s once largest Bitcoin exchange MtGox.

The investigation has begun following reports rumouring that an estimated BTC744,000 ($430m) have been stolen over several years due to a fault in the security system.

Several Japanese high-level regulatory bodies are currently investigating the situation according to Yoshihide Suga, Japan’s chief cabinet secretary.

He said: "At this stage, the relevant financial authorities, the police, the Finance Ministry and others are gathering information on the case."

Suga’s comments came after the news broke that US federal prosecutors in New York have issued a subpoena, leading to further concerns over the future of the currency.

The company’s Tokyo offices remain empty with some protestors gathered outside. There has been widespread speculation about the whereabouts of Mark Karpeles, CEO, who was prompted to release a statement.

"As there is a lot of speculation regarding MtGox and its future, I would like to use this opportunity to reassure everyone that I am still in Japan, and working very hard with the support of different parties to find a solution to our recent issues."

Superintendent of Financial Services for the State of New York, Benjamin Lawsky said that although the facts are "not yet clear, these developments underscore that smart, tailored regulation could play an important role in protecting consumers and the security of the money that they entrust to virtual currency firms."


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