Bitcoin bank closes after high-tech heist

Published on NewsOK Modified: March 4, 2014 at 7:20 pm •  Published: March 4, 2014
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The Mt. Gox collapse represents a far bigger blow to bitcoin's credibility. That downfall wiped about 750,000 bitcoins, or about 6 percent of the currency's total circulation. Mt. Gox, which is based in Japan, has filed for bankruptcy protections while it sifts through its financial mess.

But the timing of Flexcoin's collapse could make it more difficult to foster trust in bitcoin.

Supporters are touting the five-year-old currency as a way to lower transaction fees by cutting out banks and payment processors that collect billions of dollars annually by serving as financial middlemen. Skeptics, including government leaders around the world, deride bitcoins as a currency suitable only for speculators.