REPORT: MTGOX SUBPOENAED BY US PROSECUTOR

Mark karpeles bitcoin mt goxBloombergMt. Gox CEO Mark Karpeles

MtGox has been subpoenaed by the U.S. Attorney’s office in New York, the Wall Street Journal’s Christopher M. Matthews reports.

An unnamed source tells him simply that federal prosecutors sent the subpoena this month.

MtGox shut trading operations last night over what it says were “recent news reports and the potential repercussions on MtGox’s operations and the market.”

MtGox has effectively been blackballed within the Bitcoin community. Six of the largest Bitcoin firms published a statement last night denouncing Gox’s violation of users’ trust, and Gox resigned its position on the Bitcoin Foundation this past weekend.

Meanwhile, Fox News Business’ Kathryn Glass says she has obtained a chat transcript conducted by a consultant named Jon Fisher with MtGox CEO Mark Karpeles in which Karpeles claims he is still working to save the firm. Karpeles also says a leaked report indicating a massive, ongoing theft at MtGox, was “more or less legit” but that the document itself had not been produced by Gox.

BI has unsuccessfully tried to reach out to Karpeles.

Bitcoin prices were at $US556 as of 9:20 p.m. eastern.

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