Mt. Gox files for protection: report

AFP-JIJI

The troubled Mt. Gox bitcoin exchange filed for bankruptcy protection in Japan Friday after claims of a multi-million dollar theft from its digital vaults, media reports said.

The Tokyo District Court accepted the application from Mt. Gox, Jiji Press and NHK said.

The action was taken after U.S. prosecutors reportedly served a subpoena on the company.

The website of Tokyo-based Mt. Gox went dark Tuesday, possibly heralding huge losses for investors, and sending ripples of alarm throughout the global community of digital currency adopters.

Mt. Gox froze withdrawals earlier this month, claiming there was a bug in the software that underpins Bitcoin, making it vulnerable to thieves.