• Mt. Gox CEO Charged by Japanese Authorities

    17 September 2015

    Bitcoin mt gox bankruptcy

    At one point in time, about four-fifths of all bitcoin exchanges were handled by Mt. Gox, then the top exchange by far for bitcoin transactions. Having what seemed to be such a solid operation taking over such a large portion of the market helped the cryptocurrency to gain a lot of attention with huge fluctuations in its value. This all came crashing down when the Tokyo-based company was accused of fraud and a number of other crimes.

    Details on the Charges

    Japanese authorities have charged Mt. Gox CEO Mark Karpeles with embezzling an amount of bitcoin worth around £1.7 million. The alleged fraud was a major reason why the value of bitcoin crashed, and this affected tons of people who had speculated in the cryptocurrency after big spikes in its value. A spokesperson from the Tokyo Police has commented that Karpeles is being investigated in a number of related incidents including about $390 million of the currency mysteriously disappearing last year.

    How this Affected Online Gambling

    Lots of people believed that bitcoin could be a savior for the online gambling industry because there is always a chokepoint when it comes to deposits and withdrawals. Many parts of the industry have taken big hits in the past because payments were shut down, and bitcoin was thought to be a possible remedy to that situation because of its anonymous nature and the difficulty in policing it. However, the big crash that came after the Mt. Gox scandal really hurt that whole movement, and the big drop in bitcoin value that came afterwards really shook the confidence people had in it.

    How Bitcoin is Used in Today's Industry

    Today, many sites offer bitcoin deposits and withdrawals. However, few of them actually have their players keeping a balance in bitcoin. Instead, the cryptocurrency is converted to another currency, often US dollars, upon deposit. When a withdrawal is requested, it can be requested in bitcoin, and the player will be given bitcoin based on the current exchange rate.

    The reason for this approach is that the value of bitcoin can change a lot while it's just sitting in a casino account, and this can often be a bigger gamble than playing the games themselves. This approach helps to retain the advantages of bitcoin while minimizing the variance that players experience from the fluctuation of the value of the cryptocurrency itself.

    Related News

    • 25 January 2018

      A Brief Crypto-Slang Primer for the Masses

      If you've ever felt lost or stumbled through an article or forum post where the author has written about Bitcoin or other cryptocurrencies, you aren't alone. New words have entered the vernacular and if you want to understand the subject, you need to understand the slang and acronyms. Studies have shown that if there is even a single misunderstood word in a book or report, the reader may not remember anything that they've just read.

      Read full article
    • 14 December 2017

      VISA Bitcoin Cash Debit Card Coming Soon

      To un-coin a phrase, if you repeat something long and loud enough it will become the truth. Sound about right in today's world? How about this one... I chopped wood today with my grandfather's ax. Yes, I've replaced the handle twice and the head once, but it's still my grandfather's ax, I assure you.

      Read full article
    • 10 December 2017

      BingoBilly' $10,000 Santa Patterns Party

      Every weekend, Friday through Sunday, in the month of December will feature a $10,000 Santa Patterns Party at BingoBilly. There is lots of cash to be won by lucky players. Just head to the Lucky Cup Diner Room to take part in the holiday celebrations where the halls are decked with cards of bingo. Handing Out Christmas Cash Bingo Manager, Laura Chacon said: "We’re in full holiday mode and decking our Bingo rooms with all kinds of Christmas cheer.

      Read full article