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Indians allegedly have crores worth Bitcoin locked up in MtGox; we doubt it

by <a href="http://explosm.net/comics/3479/">explosm</a>

Bitcoin owners in Indian allegedly have crores of Rupees worth virtual currency stuck in Japanese Bitcoin exchange Mt Gox, that filed for bankruptcy last week, reports PTI. Mt Gox has decided to file for bankruptcy under Civil Rehabilitation Act after 744,408 Bitcoin were stolen from its wallet over two years. When it declared bankruptcy, it had listed 127,000 creditors, out of which only 1,000 were from Japan. The report however comes to this figure based on anecdotal evidence alone and some questionable calculation. It's not clear if there is a way to figure out how many Indians have Bitcoin stuck in Mt Gox or what it would be worth. To begin with, let's look at who all are affected: the first kind are those who used Mt Gox as a digital wallet and stored their Bitcoin on its servers. Then there are those who were buying and selling Bitcoin for regular currency. A lot of Bitcoin owners maintain an offline wallet and store only a small portion of the currency in online wallets. So, the first set will be okay to an extent if they also have an offline backup of their wallet. If that's the case then the chances of massive losses are less. The second group is the one that's in more trouble as a lot of people have not got funds for transactions they made over the past two months. Which means they don't have the Bitcoin or the money, putting them in a spot. What is Mt Gox doing Mt Gox…

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