Bitcoin World Rattled by Exchange Glitch
Mt. Gox has suspended withdrawals since Friday
By Matt Cantor, Newser User
Posted Feb 11, 2014 9:49 AM CST
This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah.   (AP Photo/Rick Bowmer, File)

(Newser) – Bitcoin's value was reeling yesterday amid suspension of withdrawals at a key exchange called Mt. Gox. That marketplace reported "unusual activity," suggesting the problem could be due to "a bug in the Bitcoin software." Mt. Gox said yesterday it would continue to prevent withdrawals, a move instituted Friday, indefinitely; it saw Bitcoin value drop 27% from its closing price on Friday, hitting a low of $500 before climbing back to $595.74 yesterday—still down some 14% from Friday, Reuters reports. Forbes explains that the glitch can enable "someone to use the Bitcoin network to alter transaction details, making it appear that withdrawals to Bitcoin wallets have not occurred and enabling the currency to be resent—potentially allowing someone to make a withdrawal twice for only one charge."

The CoinDesk Bitcoin price index yesterday removed Mt. Gox over a "persistent failure to meet the index's standards." According to that index, the currency's value dropped to a low of $540 yesterday. A grad student in virtual currency tells the New York Times that yesterday "just confirms what everyone in the Bitcoin community has known for a while: Don't use Mt. Gox." For its part, Mt. Gox said it wasn't the only exchange affected by the bug, the Wall Street Journal notes. But the Bitcoin Foundation says the issue is on Mt. Gox's end: "It's really an unfortunate interaction between what is arguably a flaw in the protocol—I would call it a quirk, not a flaw—and Mt. Gox's (digital) wallet and their customer-support procedures."

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Showing 3 of 22 comments
Ezekiel 25:17
Feb 12, 2014 11:43 PM CST
I've tried to convince my company to get into bitcoin mining. We have considerable IT resources spread out across the country and we could take the overnight hours to hash out solutions utilizing thousands of i7 systems. Our branch just tossed out dozens of Xeons for Waste Management to e-cycle.
loginssuck
Feb 11, 2014 6:12 PM CST
In other news, I stopped on free parking in my family Monopoly game and earned a bunch. (that is how we play)
HonkUSA
Feb 11, 2014 12:44 PM CST
I am looking for NEW PARTNERS , to start marketing a new virtual currency , called ......... $HIT Coin , I personally don't think it would smell any worse than what is happening here .