Mt. Gox's funding chain had already broken before it filed for bankruptcy

According to investigations, the Bitcoin trading platform Mt. Gox actually ran out of funds six months before the company filed for bankruptcy. Earlier reports said that CEO Mark Kapeles had admitted to manipulating accounts in Bitcoin trading, leading to speculation that he did so in order to transfer funds to his personal account.

Sources said the company already had a deficit on its balance sheet, and the deficit began to be paid out by some customers with funds from other customers' accounts as early as August 2013. Mt. Gox is considered one of the world's largest bitcoin trading platforms.

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Corporate documents show that the bitcoin exchange's balance sheet had assets valued at about ¥3.8 billion ($30.65 million) as of March 2013, including bitcoin and cash as a proxy for transactions between bitcoin customers. However, the company appears to be carrying more debt on its balance sheet than its assets and capital.

In February 2014, Tera Oxygen shut down its bitcoin exchange operations and filed for bankruptcy protection. The company said it once had about 850,000 bitcoins, worth about ¥48 billion. Kapeles is still under investigation for allegedly transferring customer and corporate funds to his own accounts. He is said to have misappropriated about ¥1.1 billion for his own affiliates and personal use.