Bitcoin Withdrawals Through Mt. Gox To Resume Soon

Bitcoin Withdrawals Through Mt. Gox To Resume Soon

An apology was extended by Japan-based Mt. Gox for putting a hold on withdrawal requests for Bitcoins. The exchange also revealed that it will allow the resumption of withdrawals soon. The distressed exchange indicated that a workaround was developed for the glitch on how transactions are handled.

The Tokyo virtual currency exchange announced the suspension of withdrawal requests on February, indicating that a glitch was discovered in the way transactions were handled by the currency when paying digital wallets of third parties.

Mt. Gox collaborated with Blockchain.info, a wallet service for the virtual currency. The workaround was developed to facilitate transaction malleability wherein a unique identifier is used to give indications of modifications made on a transaction.

A statement from the exchange indicated that withdrawals will resume soon with the establishment of new systems. The statement indicated that a moderated pace will be observed at the start with limits for daily and monthly transactions to prevent problems from emerging with its new systems. It will also take into consideration current market conditions.

A login system was also established as an added security layer by the exchange. The system will send an email alert to clients whenever their accounts were accessed successfully. Mt. Gox has indicated that a glitch was found on the system affecting all transactions ever since withdrawal requests were suspended. The Bitcoin Foundation supposed to address these transactions. The foundation is the organization that handles the virtual currency.

However, the foundation indicated that the wallet service of the exchange, its incapacity to deal with transaction malleability and customer support procedures were the reason behind the issue that resulted to the suspension of Bitcoin withdrawals.

Posted by James Fried on Wednesday February 19 2014, 4:06 AM EDT. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0