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Wired: The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster

Author: Robert McMillan
March 3, 2014

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"[Bitcoin] is clearly an amazing and potentially world-changing technology... [b]ut it's also a technology that was pushed forward by a community of people who were unprepared or unwilling to deal with even the basics of everyday business."

From a distance, the world's largest bitcoin exchange looked like a towering example of renegade entrepreneurism. But on the inside, according to some who were there, Mt. Gox was a messy combination of poor management, neglect, and raw inexperience.

Its collapse into bankruptcy last week — and the disappearance of $460 million, apparently stolen by hackers, and another $27.4 million missing from its bank accounts — came as little surprise to people who had knowledge of the Tokyo-based company's inner workings. The company, these insiders say, was largely a reflection of its CEO and majority stake holder, Mark Karpeles, a man who was more of a computer coder than a chief executive and yet was sometimes distracted even from his technical duties when they were most needed. "Mark liked the idea of being CEO, but the day-to-day reality bored him," says one Mt. Gox insider, who spoke on condition of anonymity.

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