Mt. Gox, one of the largest bitcoin exchanges in the world has gone offline, following a number of technical issues, which caused it to halt customer withdrawals.
The move has led to six other major exchanges to issue a joint statement distancing themselves from the Tokyo-based firm.
"This tragic violation of the trust of users of MtGox was the result of one company's actions and does not reflect the resilience or value of Bitcoin and the digital currency industry," the exchanges, including Coinbase and BTC China, said in a statement.
They added that the disappearance of Mt. Gox is an example of the weeding out of "bad actors", which takes place in any new industry.
The exchanges added that strong bitcoin companies will continue to thrive and fulfil the promise the digital currency has as the future of payment technology.
Mt. Gox is yet to reveal the reasons behind the site going offline and whether it will return at a later date.
However, some reports have claimed that the exchange has become "insolvent" after losing 744,408 bitcoins.
By Tony Aynsley