At the height of the bitcoin exchange Mt Gox, even during a June 2011 hacking attack, its solvency was resolved by CEO Mark Karpeles quoting a line from the comedy sci-fi novel-movie "The Hitchhiker's Guide to the Galaxy." He quoted the number 42, which the novel describes as 'the meaning of life'.
Karpeles, who was in total control of the exchange, then moved nearly $170 million worth of bitcoin pegged at current market rates. This he believed was the reassurance needed by the exchange's nearly 50,000 customers at the time. The total number of bitcoins moved was 424,242, returning to the number in the Douglas Adam's novel. He then proudly exclaimed, "Don't come after me claiming we have no coins. 42 is the answer."
This move comes at the time when the price of bitcoin skyrocketed, from a few measly dollars to at some point $1,000. With this, Mt. Gox became the world's largest exchange for the digital currency, amounting to about $3 billion at some point in 2013 until its reserves plummeted due to the devaluation of the virtual currency.
Now as Mt Gox had gone belly up. many of its creditors are deeply interested in how the exchange, with Karpeles exercising totalitarian control, lost nearly $500 million worth of bitcoin as well as about $27 million in cash from its own company accounts. Karpeles and his lawyers have declined repeated requests for comment for the Reuters report, but are known to be discussing options as it prepares for the spate of cases ahead as a result of the exchange's collapse.
Karpeles through counsel have informed a US judge that he was "not willing" to go to the United States to respond to the order sent. The US judge presides over the bankruptcy court with jurisdiction over the Mt. Gox filing. Karpeles said that he and his lawyers need to 'get up to speed' to respond to a new subpoena issued by the US Treasury Department.
Insiders familiar with the mindset of Karpeles say he fears he would be arrested if ever he sets foot in the United States. He also had undertaken a bid to resuscitate the exchange's business, but the same was dismissed by a Tokyo court. Instead, a court appointed administrator was instituted, signalling the eventual liquidation of the company. It is expected that Karpeles would be investigated for his actions and determine liability for the collapse of Mt. Gox.
