Mt. Gox Shuts Down, CEO Quits BitCoin Foundation

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Mt. Gox Shuts Down, CEO Quits BitCoin Foundation

Mt. Gox, the largest  BitCoin exchange website in the world has halted all exchanges, shut down the website, and deleted their Twitter feed. February 25, 2014, Mt. Gox has closed their doors for numerous reasons. Just the week before, Mt. Gox had halted all BitCoin withdrawals due to a security glitch that was begin patching. The alleged glitch was one that hackers used to steal around $2.7 million dollars from the silk road 2.0.

In the midst and panic of all the recent news, The Hacker News reported

Later, some sources close to the matter have confirmed that more than 700,000 bitcoins are indeed missing from MtGox records, in a ‘slow-leak‘ hack that went on for years. The repeated technical glitches over the past several months caused the Shut down of the biggest Bitcoin Industry.

Not only has Mt. Gox shut down and leaked coins, the CEO Mark Karpeles, has resigned from the BitCoin Foundation. The resignation came days after withdrawals stopped, and in the midst of the Mt. Gox shutdown.

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While everything that is going on appears to be at a standstill, many other BitCoin companies are very disappointed with Mt. Gox’s recent actions. CEO’s from Coinbase, Kraken, Bitstamp.net, BTC China, Blockchain.info, and Circle have put out an official statement regarding the recent actions Mt. Gox has taken. Lines explicitly read

“This tragic violation of the trust of users of Mt.Gox was the result of one company’s abhorrent actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants. As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today.” “Bitcoin operators, whether they be exchanges, wallet services or payment providers, play a critical custodial role over the bitcoin they hold as assets for their customers.” “It does not appear to any of us that MtGox followed any these essential requirements as a financial services provider.”

While legitimate BitCoin gateways are infuriated, Mt. Gox has not responded to any form of media inquires worldwide. Mt. Gox has taken down the website and recently posted

Dear MtGox Customers,

In light of recent news reports and the potential repercussions on MtGox’s operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.

Best regards,
MtGox Team

The future for Mt. Gox is unclear as they have halted all transactions, deleted their twitter feed, and are denying any form of media answers.

About Author

Brandon Stosh is the founder and CEO of www.freedomhacker.net. Stosh is a cyber security researcher and professional consultant who strives to provide reliable news on cyber-security based topics.

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