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

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

Summary: The bitcoin trading post has not only resigned from the Bitcoin Foundation following the suspension of withdrawals, but has also wiped its presence from social media.

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

Mt-Gox-Logo

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.

Topic: Security

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3 comments
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  • Pop goes the bubble!

    Libertarian Bitcoin fans, you've just been scammed.
    Sir Name
    • A bit early for that

      We'll see what happens to the exchange rates during the next week or so.

      I think the Bitcoin Foundation politely asked Mt. Gox to shut down and it complied. One of the questions that interests me is whether or not the Foundation becomes the de facto Bitcoin police.

      The experiment continues.
      John L. Ries
      • On second thought

        Down from $1000 to $250? The bubble appears to have popped already. We'll see now far it drops. It won't be to zero, but will probably decline some more. Bitcoin actually does need to stabilize in order for it to be a viable medium of exchange (expectations have to be properly managed); otherwise, it will continue to be mostly an instrument of speculation.

        I think some BC-boosters lost themselves a whole bunch of money.
        John L. Ries