Bitcoins.com on auction block, proceeds go to former Mt. Gox investors

Bitcoins.com on auction block, proceeds go to former Mt. Gox investors

Summary: The former CEO of Mt. Gox is selling off Bitcoins.com in order to raise funds for investors left bereft after the Bitcoin exchange went bankrupt.

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TOPICS: Tech Industry
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Bitcoins.com is being sold at auction by Mt. Gox founder Mark Karpeles, and some of the proceeds are earmarked for those who lost funds after the failed Bitcoin exchange closed.

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Following the auction of 30,000 confiscated Bitcoin seized from the underground marketplace Silk Road, Mark Karpeles is sending Bitcoins.com to the auction block in the hope of splitting the proceeds with Mt. Gox creditors.

Mt. Gox, once the dominant Bitcoin exchange on the web, suddenly closed and filed for bankruptcy this year following a string of alleged cyberattacks that left the exchange in the red. It was originally believed that 750,000 customer-owned Bitcoin and 100,000 BTC belonging to Mt. Gox had been stolen — worth approximately $495 million at the time — but these figures were later revised when 200,000 BTC were "recovered" from an "old format" wallet thought to be out of use.

As a result, customer funds lost now equate to 650,000 Bitcoin.

The shuttered Bitcoin exchange filed and received bankruptcy protection in Japan and was also granted Chapter 15 bankruptcy protection in the United States.

"We are hoping, with the sale of Bitcoins.com, to provide some relief to the people impacted by the Mt. Gox bankruptcy," said Karpeles, "and will be putting at least half of the sale amount toward that purpose."

Due for sale as part of the Heritage Auctions’ Domain Names & Intellectual Property Auction, the domain name is expected to bring more than $750,000, according to the auction house. Opening bids will begin at $185,000. Aron Meystedt, Founder and Director of the Domain Names & Intellectual Property category at Heritage Auctions, estimates the current market capitalization of all Bitcoins in circulation is between $7 billion and $8 billion.

Meystedt commented:

Bitcoins.com is absolutely the best remaining and available name for this new market. Bitcoin.com, the singular version, is owned and used by Blockchain.info, the world's most popular Bitcoin wallet, and Bitcoinwallet.com itself is also already tied up. For the right investor this is a golden opportunity.

Bitcoins.com is being offered in the July 24 auction alongside other premium domain names including Rides.com, Digital.com and DEC.com.

Topic: Tech Industry

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  • I'd pay $1

    I'd pay $1 just to put up a site on smart money management and how to spot scams like bitcoin.
    Buster Friendly