Bitcoin Exchange Company Mt. Gox Reportedly Loses Another $5.3 Million

Posted Sep 17, 2013

Mt. Gox is a popular Bitcoin exchange company.  Mt. Gox had around $5 million seized by federal agents earlier this year and now the company lost another $5.3 million due to a legal dispute with CoinLab.

Mt. Gox and CoinLab partnered with each other, but their relationship got messy.  CoinLab was used as a gateway for people that wanted to trade bitcoins on Mt. Gox.  Mt. Gox claims that customers put $12.8 million into CoinLab bank accounts.  Mt. Gox claims that there is still $5.3 million left in CoinLab’s accounts.

CoinLab attorney Edgar Sargent did not respond to Mt. Gox’s allegations.  This means that Mt. Gox has lost around $10.3 million total.

The Bitcoin industry as a whole has been extremely volatile. Bitcoin reached an all-time high of $230 on April 9, 2013. Today the currency is trading at around $135-$140. At the start of the year, Bitcoin was trading at about $13. People that got in early have largely benefitted from the currency. On the other hand, many people lost a lot of money also. Because of these large fluctuations, Bitcoin’s legitimacy as a currency has been questioned.