Published on March 7, 2014
In a rude jolt to growing virtual currency frenzy in India, bitcoins worth crores of rupees held by some Indians have vanished with collapse of Japan-based Mt Gox, which was the world's largest bitcoin exchange so far. Having filed for bankruptcy, Mt Gox has admitted to have lost 7.5 lakh bitcoins of its customers and one lakh of its own, which together are estimated to be worth about $0.5 billion (over Rs 3,000 crore). The exchange was predominantly used by foreigners, including those operating on behalf of clients from India, while some Indians were directly trading there. In its bankruptcy filing, Mt Gox has listed 1.27 lakh creditors, bulk of which is foreigners and just about 1,000 from Japan.