News Brief

The virtual currency bitcoin suffered further price volatility on Monday as major exchange Mt Gox blamed its ongoing technical issues on a critical flaw in the cryptocurrency which it said affected all exchanges.

Bitcoin withdrawals at the Japan-based exchange were halted over the weekend as its technical team investigated a problem with the way bitcoin withdrawals are processed. In a new statement on Monday Mt Gox said it would resume bitcoin withdrawals to outside wallets once the issue had been properly addressed in a manner that would best serve its customers.

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If you take the time to look into this, Mt Gox mismanaged and built their system improperly to account for a known potential vulnerability:

They have problems that tie to the fact they haven't had the funds to back up the bitcoins they hold for several fairly well known reasons spanning from having their main account seized ( and potentially having this vulnerability exploited countless times.

There were warning signs:

This is the latest diversionary tactic. Last week, it was to freeze accounts of members who had done business with another competitor. It was a move to essentially slow the hemorrhaging by blocking a segment of their clients from withdrawing money from Mt Gox that Mt Gox doesn't have. Now this latest excuse blocks everyone.

But this vulnerability does NOT affect other wallets and exchanges who built their systems properly to account for this known anomaly, essentially making this vulnerability a non-issue:  ...unless you're Mt Gox then  you ride it for all it's worth.


It's sad that one exchange can manipulate the price so drastically these days...


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