TECH

Bitcoin Mt Gox Exchange Goes Offline, Sparking Digital Currency Price Crash

25/02/2014 13:53 GMT | Updated 25/02/2014 13:59 GMT

One of the world's key Bitcoin exchanges has gone offline, sparking a dramatic price crash in the digital currency.

Mt Gox went stopped all withdrawals by its customers recently after finding what it called "unusual activity".

Now the entire exchange is offline, leaving those with Bitcoin or cash held by the exchange fearful for their investments.

The decision to pull the exchange has caused a sudden fall in the price of the digital currency, causing the operators of six other key exchanges to issue a statement distancing themselves from Mt Gox.

"This tragic violation of the trust of users of MtGox was the result of one company's actions and does not reflect the resilience or value of Bitcoin and the digital currency industry," said the statement from exchanges including BTC China and Coinbase, who went on to descibe Mt Gox as a 'bad apple' in the industry.

"We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfil the promise that Bitcoin offers as the future of payment in the internet age".

There has been no official word about why MtGox is offline, though Wired claimed that the exchange had been brought low by a loss of more than $350,000,000 worth of Bitcoin in trading on Monday.