Report: Feds Subpoena Mt. Gox

Japan also promises to investigate
By Kevin Spak,  Newser Staff
Posted Feb 26, 2014 7:42 AM CST
Bitcoin trader Kolin Burges, right, of London and American Aaron (only his first name was given) hold protest signs in front of the office tower housing Mt. Gox in Tokyo, Feb. 25, 2014.   (AP Photo/Kaori Hitomi)
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(Newser) – Federal prosecutors in New York have sent a subpoena to Mt. Gox, the once-mighty bitcoin exchange that vanished yesterday, the Wall Street Journal reports. Prosecutors demanded that the site preserve certain documents, a source said. Mt. Gox is based out of Tokyo, but if its employees sent emails or financial transfers through New York, federal prosecutors can claim jurisdiction. Soon after the Journal report hit, Japanese authorities said they too were looking into the matter, Reuters reports.

"The police, the Finance Ministry, and others are gathering information on the case," Japan's chief Cabinet secretary said. Mt. Gox CEO Mark Karpeles told Reuters the site would have an official announcement "soon-ish," adding, "We are currently at a turning point for the business." On the barren page where the site once stood, Karpeles wrote that he was still in Japan and working to fix things. Despite the uproar, bitcoin prices actually spiked today to $575, after dropping to $515 yesterday, MarketWatch reports.

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