Mt.Gox Offline Due to Gross Hack Costing $350 Million: Is It the Beginning of the End for BitCoins?

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Have you ever considered the possibility of compromising your online currency, due to hacking attacks? This is what happened with Mt.Gox, since the whole concept of money found on the web was beaten crucially and was found less than effective to deal with the consequences. In specific, Mt.Gox was forced to go offline, at least for the time being. The reason is no other than the loss of more than $350 million, being translated to 744,408 bitcoins. For those who do not know what Mt.Gox is, you should know that it was once named the world’s most popular and efficient money exchange.

There is high likelihood that the website will be bankrupt any minute now, since the loss is immense and there are gigantic results flowing from such a hack. The representatives of the company have been less than cooperative when it comes to communicating with the public and being asked to comment on this grave situation. Still, the fact is that the website is not online now and there is vague acceptance that something is wrong. As the announcement firmly states, the recent news reports have obliged them to shut down the exchange till further notice. Otherwise, there would be even deeper penetration to sensitive data.

Attackers are supposed to have been monitoring the financial transactions of the specific exchange and this is intensely disturbing news to handle. Imagine the extent of the lack of attention from the people responsible for handling the transactions, especially in such a vital sector as the one of online currency exchange. There are fears of the solid basis of bitcoins in general, due to the recent incident. If you add to that the fact that Bitinstant has also been involved in money laundering, you can see that the keystone of such currencies is not as powerful as it used to be.