Mt Gox Bitcoin Online Exchange Halts Trading

Published Friday, February 07, 2014 -
Mt Gox Bitcoin Online Exchange Halts Trading

Some investors have predicted this problem could occur and now the Bitcoin situation has turned into a technical nightmare for the Mt Gox Bitcoin exchange. While the value of  Bitcoin has remained constant for a number of weeks it is now experiencing a serious decline after reports have surfaced saying that millions of dollars in Bitcoin has gone missing.

Mt Gox, is the oldest and once-largest Bitcoin exchange and it now appears to have a problem. About a week ago, clients’ Bitcoin withdrawals have been deducted from their account, but the clients have not received the money. The withdrawn funds has disappeared into the cyber cloud. The community is fuming over the problem with Mt Gox has reported over $ 38 million USD in inconclusive withdrawals.

The situation has caused the exchange to close trading of the virtual currency.  Mt Gox accounts for about one-third of all Bitcoin trades although a number of other trading exchanges have come along it’s still a strong player. Mt Gox has not responded to the complaints of the failed transactions and in fact there has not been any communication whatsoever about the ongoing problem. The lack of a phone number, the non-responses to client concerns over tens of millions of missing dollars, and the complete absence of messages about the situation does not instil confidence in the exchange.

As of just a few days ago clients of the Mt Gox exchange were speculating about the situation perhaps it’s a legitimate technical problem linked to terrible communication, or deliberate fraud, possible insolvency, a technical attack on Mt Gox, or a number of alternate theories.

A portion of the statement on the Mt Gox web site explains as of February 7 2014 ‘In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state.'


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