As promised, Mt. Gox is releasing more information regarding the bug that pushed the company to suspend wallet withdrawals last week. Unfortunately, the issue hasn’t been fixed yet and Mt. Gox won’t be reinstating Bitcoin withdrawals until it is convinced that the system for tracking transactions is completely safe.
The world’s largest Bitcoin exchange says that the platform has a “transaction malleability” problem. This means that someone can make it look like a Bitcoin transaction didn’t take place, when in fact it did. This allows that particular person to sell the same Bitcoin again.
Mt. Gox claims that it’s all about a software bug that affects many similar platforms allowing users to send Bitcoins to other people.
“We believe that the changes required for addressing this issue will be positive over the long term for the whole community. As a result we took the necessary action of suspending Bitcoin withdrawals until this technical issue has been resolved,” reads a message from Mt. Gox.
This is particularly bad news for Bitcoin, since prices have already crashed following last week’s initial announcement. In the past half an hour, Bitcoin decreased by $30 (€22) down to $545 (€400). Last week, prior to the announcement, one Bitcoin was valued at over $850 (€623).