Mt. Gox resigns from Bitcoin Foundation, wipes Twitter feed clean

Bitcoin exchange Mt. Gox has resigned from the Bitcoin Foundation's board, the organization that manages the digital currency.

In a rather terse blog post, Mark Karpeles, chief executive officer of the Mt. Gox platform wrote:

"Effective immediately, Mt. Gox has submitted their resignation from the board of directors. We are grateful for their early and valuable contributions as a founding member in launching the Bitcoin Foundation.

MtGox Co. Ltd. (Japan) held one of the three elected industry member seats. Further details, including election procedures, will be forthcoming."

The resignation of the popular bitcoin trading post follows a dispute between Mt. Gox and the Tokyo-based foundation regarding issues concerning bitcoin and the bitcoin wallet, where the currency is stored and traded from. Mt. Gox said that the issue occurs to all bitcoin transactions sent to third parties, and so decided to suspend bitcoin withdrawals until the problem was fixed. The trading post also said that this "fundamental flaw" in the crypto-currency should be addressed by the foundation.

However, in retaliation, the Bitcoin Foundation said the problem lay with the exchange's wallet, lack of flexibility and customer support.

In addition to the resignation announcement, Mt. Gox has deleted everything from its Twitter account.

At the time of writing, a bitcoin is worth roughly $250, an improvement from approximately $100 when the currency's worth plummeted following the suspension of customer withdrawals. However, as bitcoin was worth over $1000 only several months ago, the trading issue has highlighted a lack of consistency and regulation associated with the crypto-currency.

Customers are still unable to resume trading on the exchange.