Bitcoin is facing the biggest test of confidence in the nascent virtual currency, after its oldest and most famous exchange went dark and customers feared the loss of $400m worth of Bitcoin.
Mt Gox – a contraction of Magic the Gathering Online Exchange, after its origins as an exchange for the trading cards game – suddenly deleted its Twitter history and then pulled its website offline on Tuesday, prompting a swirl of rumour and recrimination.
In the hours that followed, a document circulated online alleging that the exchange had lost 744,000 Bitcoins – equivalent to almost 6 per cent of the 12.44m coins in circulation – in what the document referred to as “theft” by outside hackers.
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