Bitcoin crashes 50% on Mt. Gox after CEO resigns from Bitcoin Foundation


Shutterstock photo - - Bitcoin prices crashed more than 50% on the Tokyo-based Mt. Gox Exchange on Monday, after the chief executive of the troubled exchange resigned from the board of the Bitcoin Foundation.

BTC/USD plunged to a session low of $132.40 on Mt. Gox, before trimming losses to trade at $137.20 during U.S. morning hours, down 56.1%.

Mark Karpeles, chief executive officer of Mt. Gox, resigned on Sunday from the board of the Bitcoin Foundation, in the latest blow to the virtual currency. Tokyo-based Mt. Gox was a founding member and one of three elected industry representatives on the board of the Bitcoin Foundation.

Bitcoin Foundation is a trade group promoting the adoption of the digital currency.

The resignation follows a number of technical issues to roil the Bitcoin market.

Mt. Gox was forced to halt all Bitcoin withdrawals on February 7, citing a "bug in the Bitcoin software", leading to steep declines as traders shied away from the virtual currency.

Prices on Mt. Gox plunged to $91.50 on February 21 as investors were disappointed with a lack of concrete details regarding progress made on resuming withdrawals on the struggling exchange.

Elsewhere, the price of a Bitcoin last traded at $575.00 on Slovenia-based BitStamp, down 5.6%, while prices on BTC-e dropped 4.9% to trade at $575.00.

BitStamp is the world's largest second-largest Bitcoin exchange, while Bulgaria-based BTC-e is the third-biggest by volume.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency declined 4.8% to trade at $575.20.

Bitcoin is digital cash for the internet and it is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers. offers an extensive set of professional tools for the financial markets.
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This article appears in: Investing , Forex and Currencies

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