Tokyo Police Formally Investigate Missing Bitcoin

CoinSafe Releases ‘Virtual Bitcoin ATM’ Apps for Merchants

Seattle-based company CoinSafe says its new mobile and desktop apps can turn any local business into a ‘bitcoin ATM’, or face-to-face bitcoin exchange.

The CoinSafe apps are free to use and allow businesses to trade bitcoins directly with walk-in customers.

After registering their business name for inclusion in CoinSafe’s directory, owners then link the app to a Blockchain, Coinbase or Bitstamp account and start trading bitcoins face-to-face.

CoinSafe says the software is “designed to be used by someone who has no idea what bitcoin is”, and that a staff member merely needs to confirm that funds have been received before releasing the payout amount in either bitcoin or cash.

The apps are HTML5-based, so are able to run on any device or platform a business might have on hand. CoinSafe says, when designing the apps, it focused on simplicity for the uninitiated user, and that it does not charge any fees to use its service.

CoinSafe co-founder and CEO Michael Flaxman said the software provided business owners with a less risky, more flexible option for getting bitcoin into their customers’ hands without having to purchase or maintain ATM hardware.

He told CoinDesk:

“We just launched, but the interest has been overwhelming. I think merchants really like the idea of having a bitcoin ATM, but when you’re running a business it’s hard to justify a $10,000 investment in a machine whose future seems so uncertain. Bitcoin ATMs and vending machines make a lot of sense once you’re doing hundreds of transactions per day, but unfortunately most stores aren’t seeing enough volume yet to recoup their investment.”

He further said that CoinSafe would provide a map on its website showing the locations of businesses who had signed up to the service.

Security and fees

The company will not have access to any user’s private keys and will encrypt all customer information in transit to its services, its website says. It also recommends that businesses keep larger amounts of bitcoin in cold storage.

Businesses paying out cash for bitcoins only do not have to give API access to CoinSafe at all, so long as they provide a bitcoin address by which the transaction can be confirmed. The service uses standard transaction fees of approximately 0.0001 BTC (about 6 US cents).

Everything is handled automatically: CoinSafe takes care of fees when the customer is buying bitcoin with cash, while wallet software takes care of fees when users sell bitcoins for cash.

Since merchants are allowed to set a markup on the average market price, CoinSafe transparently displays the markup to customers so they can see whether they are getting a good deal or not.

Rival services

CoinSafe’s offering is similar to BTC China’s ‘Picasso‘ mobile app, also marketed internationally as an ‘anywhere ATM’ solution to allow both businesses and individuals to set percentage price commissions and trade bitcoins face-to-face.

In both cases, the apps replicate bitcoin ATMs’ basic functions as a way to trade without using a full exchange, and a business does not necessarily have to accept bitcoin for its goods or services to function as an ATM/exchange.

Online marketplaces, such as such as LocalBitcoins and Mycelium’s Local Trader, also offer a way to connect with others to buy and sell bitcoin.

The apps, however, give customers an alternative to the rigmarole and potential risks of setting up accounts and dealing with individuals on Internet-based cryptocurrency markets.

The regulation issue

One potential problem for businesses using the apps is that exchanges that trade fiat currencies for digital ones online are, in some countries, subject to strict know-your-customer (KYC) and anti-money laundering (AML) regulations forcing them to collect identifying and personal material from every customer.

In several jurisdictions, they are also considered money transmitters and must apply for the requisite licence.

Hence, it is unlikely a local business would have the resources or procedures to undergo financial world-level compliance procedures.

Flaxman discussed the possible effects New York’s ‘BitLicenses’ plan would have on the bitcoin ecosystem, saying:

“It’s hard to say what effect the proposed regulations will have. While the US hasn’t been that friendly towards bitcoin businesses in the past, we’re hopeful that the government won’t get this too wrong for too long. I think most people want the jobs and innovation to stay here and not get shipped overseas.”

Face-to-face traders using services like LocalBitcoins and Mycelium’s Local Trader exist in a similar grey area. Two Florida men were charged in February with violation of anti-money laundering and money transmission laws, after using LocalBitcoins. One of them, Michell Abner Espinoza, had traded only 150 BTC in six months.

LocalBitcoins itself is not involved with this or any other similar case.

On its FAQ page, CoinSafe says regulatory issues are still unclear and vary from place to place, and requests that users relay their experiences back to its team.

This story was co-authored by Nermin Hajdarbegovic.

Source : http://www.coindesk.com 

Robocoin Opens The First Bitcoin ATM In Vegas, Baby

Luck be a protected cryptocurrency-based transaction via a highly secure, distributed network tonight! Robocoin, a bitcoin ATM company, has announced that they’ve placed the first bitcoin ATM on the Las Vegas strip where the high-rollers and low- can go to turn their winnings into crypto cash.

The ATM, south of Harmon Blvd on Las Vegas Blvd, is “inside a souvenir shop that surpasses 100,000+ in daily foot traffic,” hardly a spot that the Rat Pack might frequent. However, Robocoin is claiming that that the area is secure and popular with tourists. The ATM is owned by Chris McAlary, creator of CoinCloudNV. The ATM is near the end of the strip, across from the new City Center Casino.

The D, a Detroit-themed Casino in Old Town Las Vegas, was the first to have a bitcoin ATM on premises. However, this looks to be the first Bitcoin ATM on the Strip, an interesting development for the widespread adoption of cryptocurrencies among the blackjack and sports book set.

Source: The Bitcoin News

Cheapair.com surpasses $1.5 million in Bitcoin sales

Cheapair.com has generated over $1.5 million in sales paid for by Bitcoin since accepting for payment in November 2013. Coinbase facilitated the integration, which lets customers pay with bitcoins while the vendor receives the full sale amount in fiat.

The site helps customers find and book flights, hotels and other travel services for the best rates. They decided to accept the digital currency after one customer requested to pay for his flight with bitcoins. Jeff Klee, CEO of CheapAir, commented:

“If our customers have a need, we’ll go to great lengths to come up with a solution. In this case, that meant finding a way to accept bitcoin payments for airline and hotel transactions that traditionally were only done with cash or credit card. We appreciate how easy Coinbase made it for us to do so. In retrospect, it was one of the best decisions we’ve made for our business and our customers.”

To celebrate the milestone, CheapAir is holding a Twitter-based contest. The winner will be flown in to the “Inside Bitcoins: The Business of the Cryptocurrency World” conference, to be held in London in September.

By way of comparison, Overstock.com was one of the highest profile sites to accept Bitcoin and reached the $1.6 million mark in 5 months.

Expedia, one of the biggest players in the space, made headlines last month when it announced that it too plans on accepting bitcoins for hotel bookings.

The flight, hotel and travel group of industries is generally highly competitive and profit margins are typically low. On top of this, online services looking to capitalize upon the competitive landscape are themselves operating on razor thin margins. Expedia and others have struggled to turn a profit in recent years.

Their accepting of Bitcoin and early success in doing so is therefore to be expected. The savings in credit card fees, less those levied by their Bitcoin payment provider, can make a meaningful difference in a low margin environment.

Source: Digital Currency Magnates 

Steve Stockman: New York’s Bitcoin Regulation Could Crush the Industry

 

For Steve Stockman, US Representative for the 36th Congressional District of Texas, bitcoin presents an opportunity to provide much-needed fuel to a struggling US economy while creating a new class of jobs that redefines the Internet.

But, if regulations like those proposed by the New York Department of Financial Services (NYDFS) proliferate, Stockman fears the bitcoin business space – and its community – will face pressures that may ultimately prove insurmountable.

In a new interview with CoinDesk, Stockman said the NYDFS proposals are too onerous considering the relative infancy of bitcoin. Further, he argued that state-based regulators like those in New York are being too aggressive in their efforts to impose rules on digital currency.

Stockman told CoinDesk:

“I think New York is putting the cart before the horse.”

He added that the regulations, far from laying the foundation for future growth for bitcoin companies, are actually more beneficial to the industries to which bitcoin poses a threat.

Traditional banks, financial services providers and payments companies, he says, won’t face the same level of scrutiny that bitcoin companies will in New York should the proposals be approved.

Overregulation will ‘crush the industry’

Throughout the interview, Stockman cast the proposed NYDFS regulations as a banker-friendly, growth-harming framework that fails to recognize bitcoin’s unique characteristics and ability to jumpstart a new era of digital commerce and value exchange.

Echoing statements made by former US Mint director Ed Moy, Stockman said that the bitcoin sector itself should be the source of regulation rather than agencies that don’t fully understand digital currency. Using the US healthcare system as an example, he stated that government intervention and rule-making not only stifles innovation but keeps investment activity out entirely.

Stockman explained:

“Many [doctors] are dropping out of the profession because it’s overregulated. Now, what may happen to the bitcoin community is that, if there’s so much regulation, there’ll be a lot of people who say, ‘You know what, I’m done with this. I’m not gonna do it,’ and it’s going to crush the industry.”

Proposal a win for bankers

According to Stockman, the clear winners should the NYDFS proposal pass in its current state would be banks who face competition from bitcoin’s underlying technology.

Stockman told CoinDesk that not only would the regulations make it tough for bitcoin businesses to get off the ground in the first place, but actually competing as an alternative to traditional banking and payment systems would become a difficult task:

“I think the regulation, from the standpoint of the banks, is a banker’s dream come true. It’s basically putting a hedge around the banks, protecting the banks.”

The problem, Stockman continued, is that banks and companies that handle money in general do not and will not receive the level of regulatory focus that is being proposed for bitcoin companies. Using cash as an example, he said that hypothetically, a business would have to collect information on where each customer had received their cash.

As a result, any competition that banks might face from bitcoin companies will be stymied, he argues.

Apathy to regulation a deeper problem

At the heart of the matter, Stockman explained, is the failure of the bitcoin community to recognize the problems inherent in the NYDFS regulation.

Citing his recent appearance at The North American Bitcoin Conference (TNABC), Stockman said that far too many people were ambivalent about the proposed regulations. Saying he was “alarmed” by the feedback, Stockman added that many operated under the belief that, in the future, regulations for bitcoin will be lax given its unique qualities.

But, citing historical precedent and a front-row perspective on regulation, Stockman said this rosy outlook is far from certain. The failure to recognize this problem threatens efforts to lobby both Congress and the greater public on digital currency and its various uses.

Making matters worse, opinions on both if and how the bitcoin ecosystem should be regulated risk fracturing the community further and dampening adoption and outreach efforts. Stockman joked that if you ask 25 people in the bitcoin community a question, you get 50 different answers.

Kidding aside, the congressman reiterated that a lack of agreement among decision-makers and grassroots-level activists on the topic of regulation will be costly if the situation continues.

He said:

“We’re having problems solidifying the position, which then weakens our position. That’s a real serious problem for the bitcoin community to have.”

Stockman concluded by saying that the bitcoin community needs to adopt a greater sense of urgency as regulations are being drafted. Otherwise, they risk ceding control of the conversation and leaving the rule-making process to those who might not fully understand bitcoin.

Congress not ready for action

When asked whether or not Congress was ready to pass a digital currency bill like the one he has authored, Stockman said that US lawmakers aren’t yet educated enough to take action on the measure.

He cited events on Capitol Hill involving members of Congress as positive developments, as they give attendees more opportunities to use digital currency and better understand the technology. Through efforts like these, he hopes, more lawmakers will see a compelling reason to protect what Stockman feels can revolutionize commerce.

The lack of institutional knowledge on the part of Congress, Stockman said, makes advocacy efforts more of an uphill battle. Yet, by introducing a digital currency bill that he says is a simple, pro-growth legal framework, the educational process will continue and, in time, result in legislative action that both protects and advances the bitcoin cause.

 Source : http://www.coindesk.com 

Overstock.com Expanding Bitcoin Acceptance Internationally in the Next Six Weeks

Speaking on the RT news network recently, Overstock.com CEO Patrick Byrne revealed a bit of information with regard to the company’s bitcoin acceptance plans.

Byrne noted that in a month to six-week period, Overstock.com will be enabling bitcoin payments for the international community, including for the folks in Russia.

The news comes over seven months since the Utah-based company enabled the payment system in partnership with Coinbase, after making an announcement (to NEWSBTC) in December of last year.
When I interviewed Patrick Byrne then, the original plan was to begin accepting bitcoin in the second half of 2014 (about this time of the year, really). Due to overwhelming press attention, however, the company was forced to speed up the process to prevent major competitors from beating them into integration first.

In all, the integration process took eight days, and Byrne notes that the Coinbase system has worked flawlessly right along.

Overstock.com embracing bitcoin and digital currency has arguably done enormous things for the community. Other companies such as TigerDirect, Newegg, and Expedia have watched, taken notes, and begun accepting bitcoin themselves.

And if you thought Overstock’s interest in bitcoin was purely a PR stunt, you’re well mistaken. Byrne himself is a huge fan of cryptocurrencies and has even picked up several million dollars worth of bitcoin for himself.

On top of that, Overstock.com keeps a small percentage of bitcoin revenue as just that, bitcoin (while most other merchants convert 100 percent to local currency).

The company recently announced plans to donate a portion of the bitcoin they keep to various causes that promote cryptocurrency adoption.

Source : http://newsbtc.com 

New Zealand Bitcoin ATM Operator Shuts Down After Bank Refusals

New Zealand-based bitcoin ATM operator Bitcoin Central says it has been forced to shut its doors, the result of local banks’ refusal to provide financial services.

While bitcoin businesses around the world are going to great lengths to comply with new or potential digital currency regulation, they are also discovering another layer of difficulty: getting banks to supply the account services vital to the existence of any mainstream business.

The heading on Bitcoin Central’s homepage now reads: “We are now closed. Please read below for the why.”

“It’s the banks. Unfortunately, despite complying with all the legal requirements we have been unable to secure banking facilities. Without these the Bitcoin ATM business cannot operate long term. The negativity from the banking sector to Bitcoin also threatens the ATM owner’s other businesses. For me it is prudent to shut the ATM down. If you have any interest in purchasing a second-hand bitcoin ATM with compliance documents. Please get in touch.”

Bitcoin Central had only launched its Robocoin machine at Auckland’s Ironbar Cafe on 3rd June, calling it “NZ’s first true Bitcoin ATM” thanks to the machine’s two-way exchange facility. At the time, the company claimed “it does everything we need to make sure that we comply with NZ laws on its use”.

The Robocoin machine had all its know-your-customer (KYC) and anti-money laundering (AML) functions enabled. Although all Robocoin products have the ability to scan palms and check ID documents, they are not required to be functional in some jurisdictions.

Other NZ companies feel the pain

CoinDesk spoke to Jonathan Ewing, Director of NZ digital currency multi-service business Bitto, which operates a pair of Lamassu vending machines it launched in April. Bitto moves the machines around to various conferences, events, corporate gatherings and social environments.

Bitto has had its own struggles with bank account closures. Ewing said:

“Only last week, two months after account closure, I received a personal apology from the CEO of Co-Operative Bank NZ on business disruption and their need to comply with ‘procedures’ otherwise their banking license would be in jeopardy. We have taken oral expert advice from [law firm] Buddle Findlay indicating our requirements around AML & KYC, and this has led to the unintended outcome by the bank, specific to global AML legislation.”

Ewing said as a result of this, Bitto is refocusing its efforts away from the vending machines and onto bitcoin applications, Ethereum-based smart contracts, Distributed Autonomous Organizations (DOAs) and mining upgrades.

It’s not all bad news, though, he added, there is still a large degree of professional interest across related industries.

“On the flip side we have had approaches from finance experts, brokers and lawyers seeking professional advice on how to technically up-skill and acquire bitcoin knowledge. We are empowered by our colleagues’ enthusiasm for significant system wide change and open, transparent decentralisation.”

His company remained “invigorated and empowered” to explore how bitcoin could improve even more services, like employee pay, local tax, suppliers’ invoices and debit cards. Bitto remained ready to look offshore for financial services if necessary.

Banks, not governments, stifling bitcoin innovation

“No doubt about it, the banksters are threatened and making business life difficult for young and innovative companies, to the detriment of advancing entirely new financial systems and rampant opportunity,” Ewing said.

An unnamed banker in neighboring Australia recently revealed details on why banks often refuse bitcoin-related businesses, even those that merely accept or use bitcoin for services unrelated to finance.

The banker blamed international counter-terrorism-financing (CTF) agreements as the primary reason for banks’ reluctance, especially those with partnerships or subsidiaries operating in the US. Not only must banks perform expensive due diligence on every business customer, bitcoin’s lack of legal status as money means government regulators are unable to assist in investigations.

Many banks prefer simply to throw up their hands and walk away from digital currencies altogether, with some said to have written policies that specify such action.

CoinDesk contacted Bitcoin Central for comment, but had not received a response at press time.

Source : http://www.coindesk.com 

Bitcoins Affected by New York’s BitLicense May Trade at Discount

With New York’s BitLicense scheme officially three months away, sophisticated traders are already devising strategies to profit from the potential arbitrage opportunities.

If implemented in the regulation’s final version, the physical address and identification requirements (Sections 200.12 and 200.15) for both sides of a transaction will dilute the inherent privacy of the overall bitcoin network.

Due to potential IP address blocking and other techniques to identify and block New York-based traders, the exchanges operating within the jurisdiction may end up ‘ring-fencing’ themselves and their customers’ bitcoin.

Of course, this was not New York’s intention, but if other parties begin to shun ‘New York’ bitcoins, then those parties that do choose to accept them may only accept them at a discount, making it costly to transfer ‘non-private’ bitcoins out of New York.

Tainted by government

Typically, we refer to a loss of essential fungibility occurring as a result of some type of positive coin validation required by the government. In this case, it would be the government-approved coins that would be tainted. Perhaps, New York could mandate complete fungibility of their exchanges’ coins through legislation, but that would imply subsidizing the exchange rate.

Arthur Hayes, CEO and co-founder of BitMEX (Bitcoin Mercantile Exchange), who has strong derivatives experience with an institutional trading background, explained:

“These regulations are going to make some savvy traders a lot of money. Because there is a premium placed on privacy, the ‘clean’ coins trading on exchanges with BitLicenses will trade at a discount to coins trading on exchanges that operate in more laissez-faire jurisdictions. Traders with the ability and risk appetite will be able to arbitrage the price differential.”

Based in Hong Kong, Hayes is launching a bitcoin futures and options exchange similar to the currency futures exchanges that sprouted up in Chicago after the 1971 collapse of Bretton Woods. Hayes recently participated on CoinSummit’s derivatives panel in London, where he said he is counting on large speculators and commercial hedgers to utilize exchange-traded futures and options as a risk management tool for bitcoin.

Jurisdictional differential

Just as WTI (West Texas Intermediate) crude oil contracts vs North Sea Brent crude oil contracts trade at a differential and Chicago wheat contracts vs Kansas City wheat contracts trade at a differential, certain jurisdictional bitcoins can trade with a differential. For now, only a single-type bitcoin futures contract will be traded on BitMEX.

Indeed, newly mined ‘virgin’ bitcoin have commanded a premium for some time now in certain circles. In 2013-14, Mt. Gox coins frequently traded at either a premium or discount to other bitcoin depending on politics and exchange liquidity.

With physical bitcoin over the counter or with person-to-person trading, Hayes describes a likely scenario:

“The best example would be citizens of New York who wish to anonymously buy Bitcoin. Buyers will need to pay an increased fee to a trader who does not possess a BitLicense. The fee will cover his or her costs of acquiring coins outside of New York, and extra profit for the trader compensating him or her for the extra risks taken.”

Bitcoin black market

Free markets solve political and structural problems to increase liquidity, and currencies are no different.

Today, one of the best examples of this is the ‘blue dollar’ exchange rate in peso-ravaged Argentina, which trades at a 60% premium to the official US dollar exchange rate with the central bank.

The BitLicense-based exchange rate may be the closest thing to an official central bank rate for bitcoin and maybe this is a conscious attempt to develop an institutional wholesale market. Ultimately, it could be a bonanza for those that find themselves with the unofficial bitcoin, just like the happy tourists to Argentina.

It’s quite possible that, at the end of the day, we will see a three-tier rate structure for bitcoin: (1) virgin bitcoin, (2) free market bitcoin, and (3) tainted jurisdiction official bitcoin.

Hayes added, “At the end of the day these regulations will do nothing but push more trading off exchange and make it more expensive for honest people to obtain financial privacy.”

Source : http://www.coindesk.com 

ZipZap Raises $1.1 Million to Grow Global Bitcoin Payments Network

California-based global transaction network ZipZap has announced $1.1m in new funding that will be used in part to fund the expansion of the company’s cash-to-bitcoin services and wire-transfer purchase option to new global markets.

The seed funding round, closed in June, included Bitcoin Foundation board member Brock Pierce’s AngelList syndicate. 500 Startups, along with Blumberg Capital.

With the announcement, former Wells Fargo investment advisory representative Jim Griffin will join the company as its senior vice president of currency and foreign exchange.

Griffin indicated that he believes that the funding is a validation of the company’s strong plan to become the primary payment network for digital currencies, stating:

“With the current state of the financial market, digital currencies are increasing in popularity and adoption. This is an exciting time to join ZipZap and be a part of its growth and the evolution of currency on a global scale.”

The investment brings ZipZap’s total to-date funding to $2.7m, and follows the company’s recent expansion of its cash-to-bitcoin services into 34 new markets.

Global bitcoin services

The new funding finds ZipZap seeking to capitalize on its unique position as an experienced payments specialist operating in the bitcoin space.

Launched in 2010, ZipZap originally served as a competitor to cash payment services such as PayNearMe, allowing consumers to make payments with cash at physical locations simply by printing off a payment slip.

The company first entered the cash-to-bitcoin space in late 2013, when it announced it would introduce cash-to-bitcoin services at its 28,000 UK merchant locations.

Speaking to CoinDesk in June, CEO Alan Safahi indicated that the company is seeking to position itself as a leader in digital currency remittance services.

How ZipZap works

ZipZap partners with bitcoin exchanges to act as a bitcoin brokerage for global consumers, though the company says it plans to add support for popular altcoins such as litecoin and dogecoin in the future.

To take advantage of the service, consumers sign up for the service online and ‘Add Funds’ to their account to create a payment voucher to be redeemed at a ZipZap merchant partner.

ZipZap users can pay for bitcoin with cash at a merchant location, or by bank transfer or wire transfer.

ZipZap users can currently buy bitcoin with cash in the US, the UK and Brazil, according to its official website. Wire transfer purchases are available in 75 countries.

Source : http://www.coindesk.com 

Dutch easyHotel Franchisee Accepts Bitcoin for Room Reservations

Travelers to Amsterdam, Rotterdam and The Hague can pay for hotel bookings in bitcoin at any of the Holland’s three easyHotels.

The easyHotel Holland website offers a ‘pay in bitcoin’ option upon checkout that generates a BitPay invoice, QR code and wallet address included, to settle the payment.

The easyHotel brand has become increasingly popular in Europe, following the success of UK-based easyGroup’s airline and airport transfer brands, easyJet and easyBus.

While the easyHotels in the Netherlands have embraced bitcoin as a payment option, other members of the hotel family in Europe and the UK have not as yet.

CoinDesk was unable to reach the Benelux franchisee for comment.

Travel industry embraces bitcoin

The easyHotels integration highlights the continuing growth of bitcoin into the hotel and travel industries.

Last month online travel giant Expedia also began accepting bitcoin payments, but for hotel reservations only. The company has since announced that its bitcoin profits have exceeded expectations.

Travel agency CheapAir, which initially began accepting bitcoin for flight bookings, began integrating bitcoin payments into its booking system this February, making the service available to 200,000 hotels and Amtrak rail reservations.

Although the easyHotels franchise is not an intermediary site like Expedia or CheapAir, it is a prominent and trusted name in low-cost travel options in the UK and Europe, and the company could see a lot of the same customers paying in bitcoin.

Whether easyJet and the other easyGroup brands will follow suit remains to be seen. The Benelux region easyHotel franchisee acts under the holding company DanZep Hotels.

Growth for bitcoin in the Netherlands

More assuring is the Netherlands’ enthusiasm for incorporating the digital currency into daily life. Despite how cautious its regulatory bodies have been toward the idea of more officially adopting bitcoin, much of the country leads its European counterparts in showing grassroots support for the cryptocurrency.

This spring, the city of The Hague unofficially renamed two streets that run along one canal as ‘Bitcoin Boulevard’, with nine restaurants and an art gallery all opting en masse to accept bitcoin to help launch the rebranding of the boulevard.

The Dutch city of Arnhem also launched its own ‘bitcoin boulevard’ scheme, the second in the country, in May, dubbed Bitcoincity. Bitcoin enthusiasts have expressed interest in pursuing similar endeavors in other Dutch cities like Amsterdam.

 Source : http://www.coindesk.com 

Tokyo Police Formally Investigate Missing Bitcoin

The Tokyo Metropolitan Police Department said Wednesday that it has launched a formal investigation into the disappearance of bitcoins from defunct exchange Mt. Gox.

When it collapsed in February, the Tokyo-based exchange said it lost 850,000 bitcoins, worth half a billion dollars, due to hacking attacks. The company’s chief executive Mark Karpelès said in March that it  submitted documents to police and requested that the matter be investigated.

“We decided to launch an investigation as we concluded this case could be connected to criminal activity,” a spokesman for the police department said.

The police say they suspect 27,000 bitcoins were withdrawn through illegal computer access.

Earlier this week, the court-appointed trustee for the Mt. Gox bankruptcy case said he has extended his deadline to submit an outcome report of his investigation to May from November. The trustee has been saying it would take “a considerable amount of time” to finish the investigation due to the unique nature of the case.

 Source : http://www.cryptocoinsnews.com