Bitcoin Exhange MtGox Files for Bankruptcy in Tokyo

The website of Tokyo-based MtGox — once the largest Bitcoin exchange — went dark on Tuesday, raising concerns about the future of the unregulated virtual currency, reports Reuters today. Documents surfaced suggesting insolvency and the loss of more than $426 million, or 744,400 bitcoins.

Ars Technica reports that MtGox appears to have pitched investors in recent weeks, “arguing that it was poised to increase its profits 20-fold in just two years on the back of ‘no debt nor outside financing.’”

Federal prosecutors are now investigating Tuesday’s MtGox exchange collapse, which came amid accusations of mismanagement and after a series of cyberattacks.