Collapse of Mt. Gox - Revision history

Taras at 03:54, 1 August 2015

2015-08-01T03:54:40Z

← Older revision		Revision as of 03:54, 1 August 2015
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	==Investigation==		==Investigation==
	Private investigators have looked to the block chain for evidence and synopsis of the theft.		Private investigators have looked to the block chain for evidence and synopsis of the theft.

			==Aftermath==
			[[File:Karpeles arrested.png\|thumb\|Mark Karpelès under arrest]]Mark Karpelès was arrested on August 1, 2015. <!-- clarify on arrest; include details about bankruptcy proceedings -->

	==References==		==References==

Taras at 00:57, 2 June 2015

2015-06-02T00:57:49Z

← Older revision		Revision as of 00:57, 2 June 2015
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	'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February.		'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February. Bitcoins amounting to a half billion US dollars at the time of the event had been missing, making it the largest-ever bitcoin loss by USD value.

	==~~Technical problems~~==		==Withdrawals delayed or refused==
			''Wired Magazine'' reported in November 2013 that customers were experiencing delays of weeks to months in withdrawing funds from their accounts.<ref name=mcmillan2013>{{cite news \| title=The rise and fall of the world's largest Bitcoin exchange \| last1=McMillan \| first1=Robert \| last2=Metz \| first2=Cade \| work=Wired \| publisher=[[Condé Nast]] \| date=6 November 2013 \| url=http://www.wired.com/wiredenterprise/2013/11/mtgox/ \| accessdate=8 February 2014 }}</ref> The article said that the company had “effectively been frozen out of the U.S. banking system because of its regulatory problems”. Customer complaints about long delays were mounting as of February 2014, with more than 3300 posts in a thread about the topic on the [[BitcoinTalk]] online forum.<ref>{{cite news \| url=http://www.coindesk.com/poll-mt-gox-withdrawal-issues/ \| title=Poll: Are you having Mt. Gox withdrawal issues? \| last=Wong \| first=Joon Ian \| date=4 February 2014 \| work=CoinDesk \| accessdate=9 February 2014 }}</ref>

	==Shutdown==		==Shutdown==

	Mt. Gox issued a press release on 10 February stating that withdrawals were halted due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|		Mt. Gox issued a press release on 10 February stating that withdrawals were completely halted due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|
	url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|		url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|
	title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|		title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|
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	author=Wong, Joon Ian}}</ref>		author=Wong, Joon Ian}}</ref>

	On 20 February, with all withdrawals still halted, Mt. Gox issued another statement, still giving no date for the resumption of withdrawals.<ref name=cnbcfury>{{cite news \|		[[File:MtGoxProtest.jpg\|thumb\|Protesters sit outside Tibanne's headquarters]]On 20 February, with all withdrawals still halted, Mt. Gox issued another statement, still giving no date for the resumption of withdrawals.<ref name=cnbcfury>{{cite news \|
	url = http://www.cnbc.com/id/101431022 \|		url = http://www.cnbc.com/id/101431022 \|
	title=Bitcoin investor fury at Mt Gox delays \|		title=Bitcoin investor fury at Mt Gox delays \|
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	On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>		On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>

	On 28 February Mt. Gox filed for bankruptcy protection in Tokyo, reporting that it had liabilities of about 6.5 billion Japanese yen ($64 million at the time), and 3.84 billion yen in assets.<ref name=warnock2014>{{cite news \| first1=Eleanor \| last1=Warnock \| first2=Takashi \| last2=Mochizuki \| first3=Alexander\|last3=Martin \| date=28 February 2014 \| work=The Wall Street Journal \| url=http://online.wsj.com/news/article_email/SB10001424052702303801304579410010379087576 \| title=Mt. Gox files for bankruptcy protection \| accessdate=28 February 2014}}</ref><ref name=takemoto2014>{{cite news \| title=Mt. Gox files for bankruptcy, blames hackers for losses \| url=http://www.reuters.com/article/2014/02/28/us-bitcoin-mtgox-bankruptcy-idUSBREA1R0FX20140228 \| first1=Yoshifumi \|last1=Takemoto \|first2=Sophie \|last2=Knight\|work=Reuters\|date=28 February 2014\|accessdate=28 February 2014}}</ref> The company said they had lost almost 750,000 of its customers' bitcoins, and around 100,000 of its own bitcoins, totaling around 7% of all bitcoins, and worth around $473 million near the time of the filing.<ref name=warnock2014/><ref name=takemoto2014/> Mt. Gox released a statement saying "The company believes there is a high possibility that the [bitcoins] were stolen,”<ref name="Bloomberg28">[http://www.bloomberg.com/news/2014-02-28/mt-gox-exchange-files-for-bankruptcy.html Mt. Gox Seeks Bankruptcy After $480 Million Bitcoin Loss], Carter Dougherty and Grace Huang, [[Bloomberg News]], Feb. 28, 2014</ref> blaming hackers,<ref name=titan /> ~~thus~~ inciting a search for the missing money. Karpelès said technical issues opened up the way for fraudulent withdrawals. Mt. Gox also faces lawsuits from its customers.<ref name="Sidel-bitcoin vanish">{{cite news\|last=Sidel\|first=Robin\|title=Almost Half a Billion Worth of Bitcoins Vanish\|url=http://online.wsj.com/news/articles/SB10001424052702303801304579410010379087576?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303801304579410010379087576.html%3Fmod%3DWSJ_hp_LEFTWhatsNewsCollection\|accessdate=3 March 2014\|newspaper=Wall Street Journal\|date=28 February 2014}}</ref><ref>{{cite web \| url=http://www.investing.com/news/economy-news/mtgox-boss-sued-for-bitcoin-losses-270031 \| title=		On 28 February Mt. Gox filed for bankruptcy protection in Tokyo, reporting that it had liabilities of about 6.5 billion Japanese yen ($64 million at the time), and 3.84 billion yen in assets.<ref name=warnock2014>{{cite news \| first1=Eleanor \| last1=Warnock \| first2=Takashi \| last2=Mochizuki \| first3=Alexander\|last3=Martin \| date=28 February 2014 \| work=The Wall Street Journal \| url=http://online.wsj.com/news/article_email/SB10001424052702303801304579410010379087576 \| title=Mt. Gox files for bankruptcy protection \| accessdate=28 February 2014}}</ref><ref name=takemoto2014>{{cite news \| title=Mt. Gox files for bankruptcy, blames hackers for losses \| url=http://www.reuters.com/article/2014/02/28/us-bitcoin-mtgox-bankruptcy-idUSBREA1R0FX20140228 \| first1=Yoshifumi \|last1=Takemoto \|first2=Sophie \|last2=Knight\|work=Reuters\|date=28 February 2014\|accessdate=28 February 2014}}</ref> The company said they had lost almost 750,000 of its customers' bitcoins, and around 100,000 of its own bitcoins, totaling around 7% of all bitcoins, and worth around $473 million near the time of the filing.<ref name=warnock2014/><ref name=takemoto2014/> Mt. Gox released a statement saying "The company believes there is a high possibility that the [bitcoins] were stolen,”<ref name="Bloomberg28">[http://www.bloomberg.com/news/2014-02-28/mt-gox-exchange-files-for-bankruptcy.html Mt. Gox Seeks Bankruptcy After $480 Million Bitcoin Loss], Carter Dougherty and Grace Huang, [[Bloomberg News]], Feb. 28, 2014</ref> blaming hackers,<ref name=titan /> inciting a search for the missing money. Karpelès said technical issues opened up the way for fraudulent withdrawals. Mt. Gox also faces lawsuits from its customers.<ref name="Sidel-bitcoin vanish">{{cite news\|last=Sidel\|first=Robin\|title=Almost Half a Billion Worth of Bitcoins Vanish\|url=http://online.wsj.com/news/articles/SB10001424052702303801304579410010379087576?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303801304579410010379087576.html%3Fmod%3DWSJ_hp_LEFTWhatsNewsCollection\|accessdate=3 March 2014\|newspaper=Wall Street Journal\|date=28 February 2014}}</ref><ref>{{cite web \| url=http://www.investing.com/news/economy-news/mtgox-boss-sued-for-bitcoin-losses-270031 \| title=
	MtGox Boss Sued For Bitcoin Losses \| work=[[Investing.com]] \| date=4 March 2014}}</ref> On 9 March, Mt. Gox filed for bankruptcy protection in the US, to temporarily halt U.S. legal action by traders who alleged the operation was a fraud.<ref name=Finley-bankruptcy>{{cite news\|last=Finley\|first=Klint\|title=Bitcoin Exchange Mt. Gox Files for U.S. Bankruptcy as Death Spiral Continues\|url=http://www.wired.com/wiredenterprise/2014/03/gox-texas/\|accessdate=11 March 2014\|newspaper=Wired\|date=10 March 2014}}</ref><ref name=Hals-bankrupt>{{cite news\|last=Hals\|first=Tom\|title=Mt. Gox files U.S. bankruptcy, opponents call it a ruse\|url=http://www.reuters.com/article/2014/03/10/us-bitcoin-mtgox-bankruptcy-idUSBREA290WU20140310\|accessdate=11 March 2014\|newspaper=Reuters\|date=10 March 2014}}</ref><ref name=NYP-Bankrupt>{{cite news\|title=Bitcoin exchange Mt. Gox files for US bankruptcy\|url=http://nypost.com/2014/03/10/bitcoin-exchange-mt-gox-files-for-us-bankruptcy/\|accessdate=11 March 2014\|newspaper=New York Post\|date=10 March 2014}}</ref>		MtGox Boss Sued For Bitcoin Losses \| work=[[Investing.com]] \| date=4 March 2014}}</ref> On 9 March, Mt. Gox filed for bankruptcy protection in the US, to temporarily halt U.S. legal action by traders who alleged the operation was a fraud.<ref name=Finley-bankruptcy>{{cite news\|last=Finley\|first=Klint\|title=Bitcoin Exchange Mt. Gox Files for U.S. Bankruptcy as Death Spiral Continues\|url=http://www.wired.com/wiredenterprise/2014/03/gox-texas/\|accessdate=11 March 2014\|newspaper=Wired\|date=10 March 2014}}</ref><ref name=Hals-bankrupt>{{cite news\|last=Hals\|first=Tom\|title=Mt. Gox files U.S. bankruptcy, opponents call it a ruse\|url=http://www.reuters.com/article/2014/03/10/us-bitcoin-mtgox-bankruptcy-idUSBREA290WU20140310\|accessdate=11 March 2014\|newspaper=Reuters\|date=10 March 2014}}</ref><ref name=NYP-Bankrupt>{{cite news\|title=Bitcoin exchange Mt. Gox files for US bankruptcy\|url=http://nypost.com/2014/03/10/bitcoin-exchange-mt-gox-files-for-us-bankruptcy/\|accessdate=11 March 2014\|newspaper=New York Post\|date=10 March 2014}}</ref>

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	\|description =		\|description =
	\|deadurl =		\|deadurl =
	}}</ref>		}}</ref> On 14 April, Mt. Gox lawyers said that Karpelès wouldn't appear for a deposition in a Dallas court, or heed a subpoena by FinCEN.<ref name=titan>{{cite news\|last=Mochizuki\|first=Takashi\|title=Tracing a Bitcoin's Exchange's Fall From the Top to Shutdown Mark Karpelès hoped to set up a bitcoin cafe in the building where his exchange rented space.\|url=http://online.wsj.com/news/articles/SB10001424052702304311204579508300513992292?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304311204579508300513992292.html\|accessdate=22 April 2014\|newspaper=WSJ\|date=20 April 2014}}</ref>

	On 14 April, Mt. Gox lawyers said that ~~Mark Karpeles~~ wouldn't appear for a deposition in a Dallas court, or heed a subpoena by FinCEN.<ref name=titan>{{cite news\|last=Mochizuki\|first=Takashi\|title=Tracing a Bitcoin's Exchange's Fall From the Top to Shutdown Mark Karpelès hoped to set up a bitcoin cafe in the building where his exchange rented space.\|url=http://online.wsj.com/news/articles/SB10001424052702304311204579508300513992292?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304311204579508300513992292.html\|accessdate=22 April 2014\|newspaper=WSJ\|date=20 April 2014}}</ref>
	On 16 April, Mt. Gox gave up its plan to rebuild under bankruptcy protection, and asked a Tokyo court to allow it to be liquidated.<ref>http://online.wsj.com/news/article_email/SB10001424052702303663604579504691512965308-lMyQjAxMTA0MDEwNTExNDUyWj</ref>		On 16 April, Mt. Gox gave up its plan to rebuild under bankruptcy protection, and asked a Tokyo court to allow it to be liquidated.<ref>http://online.wsj.com/news/article_email/SB10001424052702303663604579504691512965308-lMyQjAxMTA0MDEwNTExNDUyWj</ref>

	==Investigation==		==Investigation==
			Private investigators have looked to the block chain for evidence and synopsis of the theft.

	==References==		==References==

Taras at 00:39, 2 June 2015

2015-06-02T00:39:36Z

← Older revision		Revision as of 00:39, 2 June 2015
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	'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February.		'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February.

			==Technical problems==

	==Shutdown==		==Shutdown==

	Mt. Gox issued a press release on 10 February stating that ~~the issue was~~ due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|		Mt. Gox issued a press release on 10 February stating that withdrawals were halted due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|
	url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|		url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|
	title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|		title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|
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	On 14 April, Mt. Gox lawyers said that Mark Karpeles wouldn't appear for a deposition in a Dallas court, or heed a subpoena by FinCEN.<ref name=titan>{{cite news\|last=Mochizuki\|first=Takashi\|title=Tracing a Bitcoin's Exchange's Fall From the Top to Shutdown Mark Karpelès hoped to set up a bitcoin cafe in the building where his exchange rented space.\|url=http://online.wsj.com/news/articles/SB10001424052702304311204579508300513992292?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304311204579508300513992292.html\|accessdate=22 April 2014\|newspaper=WSJ\|date=20 April 2014}}</ref>		On 14 April, Mt. Gox lawyers said that Mark Karpeles wouldn't appear for a deposition in a Dallas court, or heed a subpoena by FinCEN.<ref name=titan>{{cite news\|last=Mochizuki\|first=Takashi\|title=Tracing a Bitcoin's Exchange's Fall From the Top to Shutdown Mark Karpelès hoped to set up a bitcoin cafe in the building where his exchange rented space.\|url=http://online.wsj.com/news/articles/SB10001424052702304311204579508300513992292?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304311204579508300513992292.html\|accessdate=22 April 2014\|newspaper=WSJ\|date=20 April 2014}}</ref>
	On 16 April, Mt. Gox gave up its plan to rebuild under bankruptcy protection, and asked a Tokyo court to allow it to be liquidated.<ref>http://online.wsj.com/news/article_email/SB10001424052702303663604579504691512965308-lMyQjAxMTA0MDEwNTExNDUyWj</ref>		On 16 April, Mt. Gox gave up its plan to rebuild under bankruptcy protection, and asked a Tokyo court to allow it to be liquidated.<ref>http://online.wsj.com/news/article_email/SB10001424052702303663604579504691512965308-lMyQjAxMTA0MDEwNTExNDUyWj</ref>

			==Investigation==

	==References==		==References==
	<references/>		<references/>
	[[Category:Mt. Gox]]		[[Category:Mt. Gox]]
	[[Category:2014 events]]		[[Category:2014 events]]

Taras at 15:08, 1 June 2015

2015-06-01T15:08:36Z

← Older revision		Revision as of 15:08, 1 June 2015
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	'''[[Mt. Gox]] halted ~~trading~~''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since ~~[[dollar parity]]~~. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> The company issued a press release on 10 February stating that the issue was due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February ~~2014 \| url=https://www.mtgox~~.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}}		'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February.

	On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|		==Shutdown==

			Mt. Gox issued a press release on 10 February stating that the issue was due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|
	url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|		url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|
	title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|		title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|
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	url=http://www.heise.de/newsticker/meldung/Bitcoin-Boerse-in-Abwaertsspirale-Mt-Gox-has-left-the-building-2119550.html }}</ref>		url=http://www.heise.de/newsticker/meldung/Bitcoin-Boerse-in-Abwaertsspirale-Mt-Gox-has-left-the-building-2119550.html }}</ref>

	On 23 February, Karpelès resigned from the board of the [[Bitcoin Foundation]],<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/24/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=February 23, 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| accessdate=25 February 2014 }}</ref> ~~The same day,~~ all posts on ~~their~~ Twitter account were removed.<ref>{{cite news \| url=http://www.businessinsider.com/mtgox-resigns-from-bitcoin-foundation-2014-2 \| publisher=Business Insider \| date=February 23, 2014 \| title=MtGox Resigns From Bitcoin Foundation, Deletes All Tweets From Twitter Feed \| accessdate=25 February 2014}}</ref> ~~and Mt. Gox~~ suspended all trading the following day. Hours after trading halted, the website went offline, returning a blank page.<ref name="WiredGox"/><ref name="NYTGox"/><ref>{{cite news \| url=http://bigstory.ap.org/article/website-bitcoin-exchange-mt-gox-offline \| first1=Yuriko \| last1=Nagano \| first2=Stephen \| last2=Wright \| title=Website of Bitcoin exchange Mt. Gox offline \| work=Associated Press \| date=25 February 2014 \| accessdate=25 February 2014}}</ref> An alleged leaked internal crisis management document claimed that the company was insolvent, after losing 744,408 bitcoins in a theft which went undetected for years.<ref name="WiredGox">{{cite news \| url=http://www.wired.com/wiredenterprise/2014/02/bitcoins-mt-gox-implodes/?cid=co19086554 \| title=Bitcoin exchange Mt. Gox implodes amid allegations of $350 million hack\| first=Robert \|last=McMillan\|work=[[Wired (magazine)\|Wired]]\|date=24 February 2014\|accessdate=25 February 2014}}</ref><ref name="NYTGox">{{cite news \| url=http://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html \| title=Apparent theft at Mt. Gox shakes Bitcoin world\|first1=Nathaniel\|last1=Popper\|first2=Rachel\|last2=Abrams\|work=[[The New York Times]]\|date=25 February 2014\|accessdate=25 February 2014}}</ref><ref>[http://www.theguardian.com/technology/2014/feb/27/how-does-a-bug-in-bitcoin-lead-to-mtgoxs-collapse How a bug in bitcoin led to MtGox's collapse], Alex Hern, [[The Guardian]], Feb. 27, 2014</ref><ref>[http://www.foxbusiness.com/markets/2014/02/25/mt-gox-ceo-says-on-internet-chat-hasnt-given-up/]</ref> Six other major bitcoin exchanges released a joint statement distancing themselves from Mt. Gox shortly before Mt. Gox's website went offline.<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/25/mtgox-website-idUSL3N0LU1N920140225 \| work=Reuters \| title=Bitcoin exchange Mt. Gox's website down \| date=25 February 2014 \| accessdate=25 February 2014}}</ref><ref>{{cite press release \| title=The Coinbase Blog - Joint Statement Regarding MtGox \| date=24 February 2014 \| work=The Coinbase Blog \|publisher=Coinbase\| url=http://blog.coinbase.com/post/77766809700/joint-statement-regarding-mtgox \| accessdate=24 February 2014}}</ref>		On 23 February, Karpelès resigned from the board of the [[Bitcoin Foundation]],<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/24/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=February 23, 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| accessdate=25 February 2014 }}</ref> and all posts on the Mt. Gox Twitter account were removed.<ref>{{cite news \| url=http://www.businessinsider.com/mtgox-resigns-from-bitcoin-foundation-2014-2 \| publisher=Business Insider \| date=February 23, 2014 \| title=MtGox Resigns From Bitcoin Foundation, Deletes All Tweets From Twitter Feed \| accessdate=25 February 2014}}</ref> The exchange suspended all trading the following day. Hours after trading halted, the website went offline, returning a blank page.<ref name="WiredGox"/><ref name="NYTGox"/><ref>{{cite news \| url=http://bigstory.ap.org/article/website-bitcoin-exchange-mt-gox-offline \| first1=Yuriko \| last1=Nagano \| first2=Stephen \| last2=Wright \| title=Website of Bitcoin exchange Mt. Gox offline \| work=Associated Press \| date=25 February 2014 \| accessdate=25 February 2014}}</ref> An alleged leaked internal crisis management document claimed that the company was insolvent, after losing 744,408 bitcoins in a theft which went undetected for years.<ref name="WiredGox">{{cite news \| url=http://www.wired.com/wiredenterprise/2014/02/bitcoins-mt-gox-implodes/?cid=co19086554 \| title=Bitcoin exchange Mt. Gox implodes amid allegations of $350 million hack\| first=Robert \|last=McMillan\|work=[[Wired (magazine)\|Wired]]\|date=24 February 2014\|accessdate=25 February 2014}}</ref><ref name="NYTGox">{{cite news \| url=http://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html \| title=Apparent theft at Mt. Gox shakes Bitcoin world\|first1=Nathaniel\|last1=Popper\|first2=Rachel\|last2=Abrams\|work=[[The New York Times]]\|date=25 February 2014\|accessdate=25 February 2014}}</ref><ref>[http://www.theguardian.com/technology/2014/feb/27/how-does-a-bug-in-bitcoin-lead-to-mtgoxs-collapse How a bug in bitcoin led to MtGox's collapse], Alex Hern, [[The Guardian]], Feb. 27, 2014</ref><ref>[http://www.foxbusiness.com/markets/2014/02/25/mt-gox-ceo-says-on-internet-chat-hasnt-given-up/]</ref> Six other major bitcoin exchanges released a joint statement distancing themselves from Mt. Gox shortly before Mt. Gox's website went offline.<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/25/mtgox-website-idUSL3N0LU1N920140225 \| work=Reuters \| title=Bitcoin exchange Mt. Gox's website down \| date=25 February 2014 \| accessdate=25 February 2014}}</ref><ref>{{cite press release \| title=The Coinbase Blog - Joint Statement Regarding MtGox \| date=24 February 2014 \| work=The Coinbase Blog \|publisher=Coinbase\| url=http://blog.coinbase.com/post/77766809700/joint-statement-regarding-mtgox \| accessdate=24 February 2014}}</ref>

	On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>		On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>

Taras at 15:05, 1 June 2015

2015-06-01T15:05:12Z

Show changes

Taras at 14:50, 1 June 2015

2015-06-01T14:50:50Z

@@ Line 1: / Line 1: @@
-'''[[Mt. Gox]] halted trading''' in February 2014 due to insolvency after an apparently undetected theft that had been occurring since [[dollar parity]].
+'''[[Mt. Gox]] halted trading''' in February 2014 due to insolvency<ref name=doughterty2014>{{cite news | work=Bloomberg | date=7 February 2014 | url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html | title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity | last=Dougherty | first=Carter | accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since [[dollar parity]]. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> The company issued a press release on February 10, 2014 stating that the issue was due to transaction malleability: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release | title=Update - Statement Regarding BTC Withdrawal Delays | publisher=Mt. Gox Co. Ltd. | date=10 February 2014 | url=https://www.mtgox.com/press_release_20140210.html | archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html | archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>
 {{stub}}
 [[Category:Mt. Gox]]
 [[Category:2014 events]]

Taras: This is going to be expansive enough to warrant its own page

2015-04-19T14:45:44Z

This is going to be expansive enough to warrant its own page

New page

'''[[Mt. Gox]] halted trading''' in February 2014 due to insolvency after an apparently undetected theft that had been occurring since [[dollar parity]].
{{stub}}
[[Category:Mt. Gox]]
[[Category:2014 events]]

← Older revision		Revision as of 15:08, 1 June 2015
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	'''[[Mt. Gox]] halted ~~trading~~''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since ~~[[dollar parity]]~~. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> The company issued a press release on 10 February stating that the issue was due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February ~~2014 \| url=https://www.mtgox~~.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}}		'''[[Mt. Gox]] halted withdrawals''' on 7 February 2014 due to insolvency<ref name=doughterty2014>{{cite news \| work=Bloomberg \| date=7 February 2014 \| url=http://www.bloomberg.com/news/2014-02-07/bitcoin-price-falls-as-mt-gox-exchange-halts-activity.html \| title= Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity \| last=Dougherty \| first=Carter \| accessdate=9 February 2014 }}</ref> after an apparently undetected theft that had been occurring since 2011. The company said it was pausing withdrawal requests “to obtain a clear technical view of the currency processes”.<ref name=doughterty2014/> Mt. Gox would also suspend trading on 24 February.

	On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|		==Shutdown==

			Mt. Gox issued a press release on 10 February stating that the issue was due to [[transaction malleability]]: “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur. Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. Mt. Gox is working with the Bitcoin core development team and others to mitigate this issue.”<ref>{{cite press release \| title=Update - Statement Regarding BTC Withdrawal Delays \| publisher=Mt. Gox Co. Ltd. \| date=10 February 2014 \| url=https://www.mtgox.com/press_release_20140210.html \| archiveurl=https://web.archive.org/web/20140210122955/https://www.mtgox.com/press_release_20140210.html \| archivedate=10 February 2014 }}</ref><ref>http://www.pokerupdate.com/news/business-and-finance/mt-gox-shutdown-puts-bitcoin-investors-on-edge/</ref>{{clarification needed}} On 17 February, with all Mt. Gox withdrawals still halted and competing exchanges back in full operation after the transaction malleability scare, the company published another press release indicating the steps they claim they are taking to address security issues.<ref>{{cite press release \| title=20140217-Announcement: Tokyo, Japan, February 17th, 2014 \| url=https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| format=PDF \| archiveurl=https://web.archive.org/web/*/https://www.mtgox.com/img/pdf/20140217-Announcement.pdf \| archivedate=17 February 2014 \| date=17 February 2014 \| location=Tokyo \| publisher=Mt. Gox }}</ref> In an email interview with the ''Wall Street Journal'', CEO [[Mark Karpelès]] refused to comment on increasing concerns among customers about the financial status of the exchange, did not give a definite date on which withdrawals would be resumed, writing that the exchange would impose "new daily and monthly limits" on withdrawals if and when they were resumed.<ref>{{cite news \|
	url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|		url=http://online.wsj.com/news/articles/SB10001424052702304899704579388483531937144?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304899704579388483531937144.html \|
	title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|		title=Bitcoin Platform Mt. Gox Apologizes for Delayed Response - CEO Karpeles Declines To Shed Light On How Customer Funds Are Protected \|
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	url=http://www.heise.de/newsticker/meldung/Bitcoin-Boerse-in-Abwaertsspirale-Mt-Gox-has-left-the-building-2119550.html }}</ref>		url=http://www.heise.de/newsticker/meldung/Bitcoin-Boerse-in-Abwaertsspirale-Mt-Gox-has-left-the-building-2119550.html }}</ref>

	On 23 February, Karpelès resigned from the board of the [[Bitcoin Foundation]],<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/24/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=February 23, 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| accessdate=25 February 2014 }}</ref> ~~The same day,~~ all posts on ~~their~~ Twitter account were removed.<ref>{{cite news \| url=http://www.businessinsider.com/mtgox-resigns-from-bitcoin-foundation-2014-2 \| publisher=Business Insider \| date=February 23, 2014 \| title=MtGox Resigns From Bitcoin Foundation, Deletes All Tweets From Twitter Feed \| accessdate=25 February 2014}}</ref> ~~and Mt. Gox~~ suspended all trading the following day. Hours after trading halted, the website went offline, returning a blank page.<ref name="WiredGox"/><ref name="NYTGox"/><ref>{{cite news \| url=http://bigstory.ap.org/article/website-bitcoin-exchange-mt-gox-offline \| first1=Yuriko \| last1=Nagano \| first2=Stephen \| last2=Wright \| title=Website of Bitcoin exchange Mt. Gox offline \| work=Associated Press \| date=25 February 2014 \| accessdate=25 February 2014}}</ref> An alleged leaked internal crisis management document claimed that the company was insolvent, after losing 744,408 bitcoins in a theft which went undetected for years.<ref name="WiredGox">{{cite news \| url=http://www.wired.com/wiredenterprise/2014/02/bitcoins-mt-gox-implodes/?cid=co19086554 \| title=Bitcoin exchange Mt. Gox implodes amid allegations of $350 million hack\| first=Robert \|last=McMillan\|work=[[Wired (magazine)\|Wired]]\|date=24 February 2014\|accessdate=25 February 2014}}</ref><ref name="NYTGox">{{cite news \| url=http://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html \| title=Apparent theft at Mt. Gox shakes Bitcoin world\|first1=Nathaniel\|last1=Popper\|first2=Rachel\|last2=Abrams\|work=[[The New York Times]]\|date=25 February 2014\|accessdate=25 February 2014}}</ref><ref>[http://www.theguardian.com/technology/2014/feb/27/how-does-a-bug-in-bitcoin-lead-to-mtgoxs-collapse How a bug in bitcoin led to MtGox's collapse], Alex Hern, [[The Guardian]], Feb. 27, 2014</ref><ref>[http://www.foxbusiness.com/markets/2014/02/25/mt-gox-ceo-says-on-internet-chat-hasnt-given-up/]</ref> Six other major bitcoin exchanges released a joint statement distancing themselves from Mt. Gox shortly before Mt. Gox's website went offline.<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/25/mtgox-website-idUSL3N0LU1N920140225 \| work=Reuters \| title=Bitcoin exchange Mt. Gox's website down \| date=25 February 2014 \| accessdate=25 February 2014}}</ref><ref>{{cite press release \| title=The Coinbase Blog - Joint Statement Regarding MtGox \| date=24 February 2014 \| work=The Coinbase Blog \|publisher=Coinbase\| url=http://blog.coinbase.com/post/77766809700/joint-statement-regarding-mtgox \| accessdate=24 February 2014}}</ref>		On 23 February, Karpelès resigned from the board of the [[Bitcoin Foundation]],<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/24/mtgox-bitcoinfoundation-idUSL3N0LT15X20140224 \| work=Reuters \| date=February 23, 2014 \| title=Mt. Gox resigns from Bitcoin Foundation \| accessdate=25 February 2014 }}</ref> and all posts on the Mt. Gox Twitter account were removed.<ref>{{cite news \| url=http://www.businessinsider.com/mtgox-resigns-from-bitcoin-foundation-2014-2 \| publisher=Business Insider \| date=February 23, 2014 \| title=MtGox Resigns From Bitcoin Foundation, Deletes All Tweets From Twitter Feed \| accessdate=25 February 2014}}</ref> The exchange suspended all trading the following day. Hours after trading halted, the website went offline, returning a blank page.<ref name="WiredGox"/><ref name="NYTGox"/><ref>{{cite news \| url=http://bigstory.ap.org/article/website-bitcoin-exchange-mt-gox-offline \| first1=Yuriko \| last1=Nagano \| first2=Stephen \| last2=Wright \| title=Website of Bitcoin exchange Mt. Gox offline \| work=Associated Press \| date=25 February 2014 \| accessdate=25 February 2014}}</ref> An alleged leaked internal crisis management document claimed that the company was insolvent, after losing 744,408 bitcoins in a theft which went undetected for years.<ref name="WiredGox">{{cite news \| url=http://www.wired.com/wiredenterprise/2014/02/bitcoins-mt-gox-implodes/?cid=co19086554 \| title=Bitcoin exchange Mt. Gox implodes amid allegations of $350 million hack\| first=Robert \|last=McMillan\|work=[[Wired (magazine)\|Wired]]\|date=24 February 2014\|accessdate=25 February 2014}}</ref><ref name="NYTGox">{{cite news \| url=http://www.nytimes.com/2014/02/25/business/apparent-theft-at-mt-gox-shakes-bitcoin-world.html \| title=Apparent theft at Mt. Gox shakes Bitcoin world\|first1=Nathaniel\|last1=Popper\|first2=Rachel\|last2=Abrams\|work=[[The New York Times]]\|date=25 February 2014\|accessdate=25 February 2014}}</ref><ref>[http://www.theguardian.com/technology/2014/feb/27/how-does-a-bug-in-bitcoin-lead-to-mtgoxs-collapse How a bug in bitcoin led to MtGox's collapse], Alex Hern, [[The Guardian]], Feb. 27, 2014</ref><ref>[http://www.foxbusiness.com/markets/2014/02/25/mt-gox-ceo-says-on-internet-chat-hasnt-given-up/]</ref> Six other major bitcoin exchanges released a joint statement distancing themselves from Mt. Gox shortly before Mt. Gox's website went offline.<ref>{{cite news \| url=http://www.reuters.com/article/2014/02/25/mtgox-website-idUSL3N0LU1N920140225 \| work=Reuters \| title=Bitcoin exchange Mt. Gox's website down \| date=25 February 2014 \| accessdate=25 February 2014}}</ref><ref>{{cite press release \| title=The Coinbase Blog - Joint Statement Regarding MtGox \| date=24 February 2014 \| work=The Coinbase Blog \|publisher=Coinbase\| url=http://blog.coinbase.com/post/77766809700/joint-statement-regarding-mtgox \| accessdate=24 February 2014}}</ref>

	On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>		On 25 February, Mt. Gox reported on its website that a "decision was taken to close all transactions for the time being", citing "recent news reports and the potential repercussions on MtGox's operations". Karpelès told ''Reuters'' that Mt. Gox was "at a turning point".<ref name=Reuters-closed>{{cite news\|title=Mt. Gox website says all transactions closed "for the time being"\|url=http://www.reuters.com/article/2014/02/25/us-mtgox-website-idUSBREA1O07920140225\|accessdate=25 February 2014\|newspaper=Reuters\|date=25 February 2014}}</ref><ref name=Lowery-end>{{cite news\|last=Lowery\|first=Adrian\|title=Is it the beginning of the end for Bitcoin? Virtual currency in turmoil as rumoured $375m theft closes major exchange \|url=http://www.thisismoney.co.uk/money/news/article-2567436/Bitcoin-turmoil-rumoured-375m-theft-closes-major-exchange.html\|accessdate=25 February 2014\|newspaper=This is money\|date=25 February 2014}}</ref><ref name=Anklam-offline>{{cite news\|last=Anklam\|first=Fred\|title=Bitcoin exchange Mt. Gox goes offline amid turmoil\|url=http://www.usatoday.com/story/tech/2014/02/25/mt-gox-offline/5801093/\|accessdate=25 February 2014\|newspaper=USA Today\|date=25 February 2014}}</ref><ref name=Vaishampayan>{{cite news\|last=Vaishampayan\|first=Saumya\|title=Mt. Gox says transactions closed 'for time being'\|url=http://www.marketwatch.com/story/mt-gox-says-transactions-closed-for-time-being-2014-02-25?link=MW_home_latest_news\|accessdate=25 February 2014\|newspaper=Market Watch\|date=25 February 2014}}</ref>