Tokyo Bitcoin exchange files for bankcruptcy

TOKYO (AP) - The Mt. Gox bitcoin exchange in Tokyo has filed for bankruptcy protection. And the company's chief executive says 850,000 bitcoins have gone missing.

The exchange's CEO, Mark Karpeles bowed deeply as he appeared before Japanese TV news cameras - saying a flaw in the Mt. Gox system caused it to lose 750,000 bitcoins from users and 100,000 of the company's own bitcoins.

With recent prices, the losses from the unaccounted for bitcoins would amount to about $425 million.

The bitcoin seller shut down last week amid accusations it had suffered a catastrophic theft.

The case has drawn attention to a currency created in 2009 as a way to make transactions across borders without third parties such as banks.

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