Bitcoin down as Mt. Gox files for bankruptcy

Bitcoin prices fell on Wednesday after the Japanese bitcoin exchange Mt. Gox asked a Tokyo court to allow it to be liquidated following a crippling data breach in February.

(BTC-eUSD) fell to a session low of $485.01 on Slovenia-based BitStamp, before trimming losses, and was last trading at $507.02.

The price of a Bitcoin on Bulgaria-based BTC-e was $500.00.

Mt. Gox, once world’s leading bitcoin exchange, suspended trading February 25 after announcing the disappearance of 850,000 bitcoins, valued at close to half a million dollars at the time.

Mt.Gox blamed the bitcoins' disappearance on a bug in the cryptocurrency's framework called 'transaction malleability.'

Since then 850,000 of the lost Bitcoins have been recovered, leaving 200,000 bitcoins, valued at around $325 million at today's market prices, unaccounted for.

Liquidation will mean that the company is brought to an end and could see creditors recoup less of their investments.