MtGox: What the largest exchange is doing about the Linode theft and the implications
This article was originally written on March 28, 2012. Following the recent Linode theft, in which over 43000 total bitcoins were stolen from Bitcoinica, MtGox enacted a new policy in an attempt to help stop the thief get away with his illicit gains: they began freezing accounts with bitcoins that could be traced back to the theft and demanding that they....
Related News
On March 1, web hosting provide Linode's servers were hacked, resulting in a theft of 3000 BTC from Slush and, most severely, 43000 BTC from Bitcoinica. There have been two major Bitcoin heists before, one 25000 BTC theft in June and a 17000 BTC theft from the Bitcoin exchange bitomat.pl in August, resulting in the exchange being bailed out and acquired by MtGox. Security is a major issue in the Bitcoin community, and many are worried that if they want to carry out a significant portion of their economic activity in bitcoins their money will not be safe. Many traditional banking proponents....
The last few days have unfortunately brought one piece of grim news after another to the Bitcoin community. As if the 43000 BTC Linode theft in March was not enough, another 18457 BTC was stolen from Bitcoinica's reserves, and Zhou Tong was barely able to prevent the thief from getting his hands on 30000 more. Unfortunately, given the financial stress that Bitcoinica was already in after the Linode theft two months ago, even this smaller loss turned out to be the straw that broke the camel's back. The site was immediately shut down for security reasons, and less than one day later Zhou....
This altered photo of Mark Karpeles uploaded by /u/MorXpe on /r/bitcoin shows how some MtGox customers feel right now. A large chunk of the Bitcoin community has been ready to give up on MtGox for more than a few months, but the question still remains as to whether they are insolvent, incompetent, or just bad at public relations. While there is no need for a debate over whether or not this exchange has had problems in the past, there is little proof that Mark Karpeles and the rest of the staff over at MtGox are actually fraudsters. Although MtGox bitcoins are still being sold at a....
Roger Ver speaking at LeWeb 2013. Photo via LeWeb13. Roger Ver, also known as Bitcoin Jesus, is looking to buy MtGox bitcoins from people who believe the Bitcoin exchange may be insolvent. As reported yesterday, people are already selling their MtGox bitcoins at discounted rates on a new exchange that popped up overnight. Ver made a post on the bitcointalk forum where he stated his interesting in purchasing at least 100 bitcoins from other MtGox users. It's interesting to see this bid of confidence from Ver after so many people in the Bitcoin community have been bashing MtGox for the past....
The largest Bitcoin exchange, MtGox, has announced that they are resuming USD withdrawals around the world, putting an end to two weeks of hiatus. A long backlog of withdrawal requests had been accumulated over the period, so it will take over a month before processing times finally return to normal, but MtGox expects that the main disruptions are now over. "Mt. Gox has now formed relationships with several new banking partners both in Japan and around the world," the press release reads, "and we are still in the process of finalizing even more. This means that we will have increased....