Monday, June 20, 2011
The Bitcoin Trials Continue: Mt. Gox Exchange Collapses Due To Compromised Account
It seems that Bitcoin is experiencing the same fits and starts that any new currency undergoes early in its history. Though Bitcoin is 2 years old, the mainstream press discovered it much more recently, and since then, Bitcoin has experienced some schizophrenic volatility -- you can read Jon Evans' recent diagnosis here. Yet, absent from Evans' post is the very latest news out of the virtual currency market: Late this afternoon, Bitcoin suffered from another serious setback, as the network's most popular exchange, Mt. Gox, collapsed thanks to a hacked account. The unknown hacker(s) made an enormous sale of bitcoins from a compromised account, causing the price of the currency to fall from $17.5 to just pennies in a matter of minutes.