Watching the drama surround MtGox in recent days has been like watching a slow motion train wreck. It’s put a lot of strain on the community and has been causing the Bitcoin price to tank. If you’re not up to date on this story, basically MtGox has been experiencing severe Bitcoin withdraw issues with numerous customers claiming they never received their bitcoins. Apparently upwards of $38 million worth of bitcoin withdrawals have gone unfulfilled causing MtGox to freeze withdrawals altogether.
You can add this to the long list of problems MtGox has had over the last couple years. A trading platform that couldn’t handle high volume trades, operating without a license in the US and having a large amount of customer funds stolen by the US government, USD withdrawals taking months to clear, and strong suspicion it’s operating on fractional reserves.
Now this morning MtGox comes out and announces its problems aren’t its fault, but rather a bug in Bitcoin itself! News of this potentially catastrophic bug has sent the markets into a tizzy.