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Shocker: Bitcoin Economy on the Brink

Rumors about the possible collapse of leading Bitcoin exchange Mt. Gox are sending shock waves through the community that has embraced the virtual currency. 

Amid radio silence from the company, users are attempting to sort through conflicting signals that the company has shut down or that it is being acquired and possible relaunched. There was a debate over the authenticity of a document circulating that appears to be an internal Mt. Gox memo detailing how the company may have lost 744,000 Bitcoins in theft over several years.

A joint statement from several Bitcoin companies condemned Mt. Gox’s handling of its situation:

“This tragic violation of the trust of users of Mt. Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants.  As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.”. . .

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