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Summary:

The outfit has apologized for freezing withdrawals and says it now has a workaround to avoid the “malleability issue” that makes certain implementations of Bitcoin services open to fraud.

Bitcoin
photo: Guardian/Guy Grandjean, James Ball

The Tokyo-based Bitcoin exchange MtGox has apologized (PDF) for suspending the ability of its customers to get their money out and promised an end to the suspension “soon”.

MtGox said the people over at Bitcoin wallet service Blockchain.info had helped it develop a workaround for the so-called malleability issue that caused the withdrawal freeze. The workaround involves a new identifier to check whether transactions have been modified or not.

MtGox has always maintained that the problem is a bug in Bitcoin, while others have said it was in the outfit’s handling of the protocol. The exchange’s version of events got something of a boost when it emerged that there was a wave of fraudulent attacks stealing people’s bitcoins from various services, based on the malleability issue.

“With this new system in place, MtGox should be able to resume withdrawals soon. At the beginning we will do so at a moderated pace and with new daily/monthly limits in place to prevent any problems with the new system and to take into account current market conditions,” MtGox’s statement read.

The firm is also bringing in email notifications for each successful account access, as an extra layer of security. It said more details about the resumption of services would come out on Thursday at the latest.

The price of a bitcoin on MtGox is now just $330, compared with around $625 on less troubled exchanges.

  1. Regardless of the problems with Mt.Gox over the past weeks, other BitCoin exchanges are not doing nearly as bad. Itbit.com out of Singapore is actually profiting nicely from an influx of orders since Mt.Gox has been unreliable. Yes folks, BitCoin banks, ATMs and full retail service will be the future, no doubt. This is what happens when a lighter, faster, cheaper, and more efficient system is released; whatever preceded it fades away into obsolescence. For more insight please visit crypto-market-news.weebly.com

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    1. Neal Palmquist Friday, February 21, 2014

      Believe it when I see it.

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