Bitcoins are becoming more and more ubiquitous. While some people have no idea what they are, many people are investing in them because as of today, one bitcoin is worth about $560 dollars, as reported by Reuters in a February 28, 2014 article.

Bitcoins are virtual currency and Mt. Gox, which is partially responsible for the digital currency switch, recently filed for a Chapter 11 bankruptcy in Japan because “it may have lost nearly half a billion dollars’ worth of the virtual coins due to hacking into its faulty computer system.” Thus the company was forced to close its Website. The company’s high ranking officers feel that the hacking and the bankruptcy filing should not affect the company or the value of the coins, as their value will pick up soon.

Many people whose assets were held by the company want to know what exactly happened. The Bitcoin exchange system is not regulated by the United States Government because it is in no way connected to the Federal Reserve System. As a result, many of its coin holders claim that this problem occurred due to a lack of regulations.

Someone who had about $25,000 worth of Bitcoins brought suit in federal court in Chicago claiming that the company did not take adequate protections to ensure that is customers were safe, and that their Bitcoins were safe. Furthermore, the petitioner claimed that he paid for this protection. While many individuals lost a lot in investments, many companies suffered, as well.

If you are in debt or are facing financial difficulty, such as foreclosure, then filing for bankruptcy may be a good option. Chapter 7 bankruptcies wipe out your bills and debts and allow you to start afresh. To set up a free in person initial consultation regarding a personal bankruptcy, then contact the law office of Jayson Lutzky, P.C. The attorney has over 30 years of experience practicing law in New York. Remember that the consultation is confidential and requires no obligation. Call 718-514-6619 to set up an appointment or for more information. Visit www.MyNewYorkCityLawyer.com to learn more about Mr. Lutzky.