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MtGox blames bankruptcy on bug and admits losses could escalate

MtGox is silent no more after it finally came out and admitted there was a “high probability” that a bug in its systems allowed hackers to steal thousands of Bitcoins and force it into bankruptcy.

Related: Out-of-pocket Bitcoin owners sue MtGox for damages

The statement, which was made through the company’s website, explains that the company has already launched an investigation to find out who is behind the theft and has even hired an expert to examine whether it can launch criminal proceedings.

Most of the statement merely confirmed what had already been revealed in a leaked document that emerged days before it declared bankruptcy thus confirming that 750,000 Bitcoins belonging to customers had been stolen as well as 100,000 Bitcoins belonging to MtGox.

The value of all the coins put together is around $500 million [£300 million], according to the release, and the exchange admitted that its accounts contain 2.8 billion yen [£16.5 million] less than the amount MtGox users have deposited.

To “establish the truth” about what occurred, MtGox will pore over a “huge amount of transaction reports” that mean the exact amount of lost funds could even increase.

"We will make all efforts to ensure that crimes are punished and damages are recovered," it said.

In addition to this it is looking at how viable it will be the continue as a business in order to pay back its creditors and a call centre has been opened to answer questions from its legion of out-of-pocket customers.

On the same day as MtGox’s statement another Bitcoin exchange also announced its demise with Flexcoin unable to recover from the loss of 896 Bitcoins and it’s working alongside the authorities to try and find out where the hack came from.

"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately," it said, according to the BBC.

MtGox filed for bankruptcy protection in Japan at the end of last week after a month in which it had seemingly stumbled from one crisis to another before finally deciding to call it a day.

Related: MtGox files for bankruptcy protection in Japan

The court that is handling the bankruptcy stated that its debts total over 6.5 billion yen [£38 million] and at the time stated that this is far larger than the amount of money in its accounts – as has been illustrated by MtGox’s own statement today.