Investing.com - Bitcoin prices crashed more than 50% on the Tokyo-based Mt. Gox Exchange on Monday, after the chief executive of the troubled exchange resigned from the board of the Bitcoin Foundation.
BTC/USD plunged to a session low of $132.40 on Mt. Gox, before trimming losses to trade at $137.20 during U.S. morning hours, down 56.1%.
Mark Karpeles, chief executive officer of Mt. Gox, resigned on Sunday from the board of the Bitcoin Foundation, in the latest blow to the virtual currency. Tokyo-based Mt. Gox was a founding member and one of three elected industry representatives on the board of the Bitcoin Foundation.
Bitcoin Foundation is a trade group promoting the adoption of the digital currency.
The resignation follows a number of technical issues to roil the Bitcoin market.
Mt. Gox was forced to halt all Bitcoin withdrawals on February 7, citing a “bug in the Bitcoin software”, leading to steep declines as traders shied away from the virtual currency.
Prices on Mt. Gox plunged to $91.50 on February 21 as investors were disappointed with a lack of concrete details regarding progress made on resuming withdrawals on the struggling exchange.
Elsewhere, the price of a Bitcoin last traded at $575.00 on Slovenia-based BitStamp, down 5.6%, while prices on BTC-e dropped 4.9% to trade at $575.00.
BitStamp is the world’s largest second-largest Bitcoin exchange, while Bulgaria-based BTC-e is the third-biggest by volume.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency declined 4.8% to trade at $575.20.
Bitcoin is digital cash for the internet and it is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.