CCN Week in Review: Mt. Gox “Finds” 200K BTC, Blockchain Downtime, Bitcoin Price Drop, and More

Journalist:
March 23, 2014

The week of 17 March – 23 March was pretty eventful in the Bitcoin world. We learned that Mt. Gox stumbled upon 200,000 bitcoins previously thought to have been stolen in an old wallet, that popular web wallet Blockchain suffered extended downtime due to a database issue, that the price of bitcoin fell below 600 USD, and more. Here are our top stories this week in case you missed them.

Mt. Gox Recovers Thousands of Lost Bitcoins

The Mt. Gox tale continues. On the 18th of March, the exchange began allowing users to log in to their accounts and see the bitcoins they once had. Mt. Gox states, “This service IS Provided on this site only for the Convenience of all users. Please BE aware Confirming That the balance on this site Does not Constitute a rehabilitation.” Three days later, Mt. Gox announced that they “found” 200,000 of the 850,000 missing bitcoins in an old wallet.

“MtGox Co., Ltd. had certain old­-format wallets which were used in the past and which, MtGox thought, no longer held any bitcoins.”

Mark Karpeles

According to the exchange’s founder and CEO, Mt. Gox essentially stumbled upon an old wallet with millions of dollars worth of BTC. However, with the exchange’s history of misleading its customers, it’s hard to believe this story. Either Karpeles has been lying again, or Mt. Gox’s incompetence just reached a new high.

Blockchain Suffers Extended Downtime

Blockchain suffered extended downtime due to a database error.

For almost two days, popular web wallet Blockchain went down for unscheduled maintenance. Initial thoughts were that the downtime was due to an issue with Sharedcoin, but official reports from Blockchain staff stated that a database error resulted in the suspension of services. It’s important to note that the downtime was not the result of any sort of hacking attack. Furthermore, since Blockchain gives users control over their private keys, it was easy to import wallet backups to desktop clients such as MultiBit. The issue was resolved within 48 hours and all services have been restored.

Bitcoin Price Drops Below 600 USD

Bitcoin price took a hit after rumours of China banning BTC.

Just as bitcoin started to recover from the Mt. Gox disaster, it took another hit this week. A rumour began spreading across the Internet saying that China would ban bitcoin transactions in the country. Although the People’s Bank of China is looking into strengthening regulations, a ban on bitcoin is definitely not on the agenda. BTC China was the first to respond, stating that the exchange received no document about a ban. Most likely, the news was a hoax, and it’s possible that someone attempted to manipulate the market.

Bitcoin Core 0.9.0 Released

Bitcoin Core

Bitcoin-QT, now known as Bitcoin Core, received a major update on Wednesday. The new version features a faster wallet GUI, transaction malleability fixes, lower fees, and more. Version 0.9.0 also supports 64-bit Windows and drops support for Macs running OS X 10.5 or under. It is highly recommended that users update to version 0.9.0 as soon as possible.

Bitcurex Resumes Operations as Promised

Bitcurex is back in business after thwarting a major hacking attack.

After halting trades to investigate a hacking attack, Bitcurex soon resumed operations as promised on Tuesday. Hackers managed to defraud a portion of hot wallet funds, but all funds from the cold wallet and fiat monetary funds were unaffected. Furthermore, Bitcurex promised to fund all hot wallet losses from their own money. It’s clear that Bitcurex knows how to professionally handle a potential crisis.

CoinEX Hacked, All Coins Stolen

CoinEx.pw got hacked, all coins are stolen as reported by founder Erundook.

Another exchange has been hacked. CoinEX, the relatively new altcoin exchange, went offline a few days ago. At first, deposits and withdrawals were frozen. Next, basic trading became unavailable. Soon, one of CoinEX’s founders — erundook, released an official statement saying that the wallet server was hacked and all coins were stolen. CoinEX promised to recover stolen funds from their own pockets, but whether or not they will be able to do this remains to be seen.

That concludes this CCN Week in Review, where every Sunday we feature our top stories of the week.

Last modified (UTC): March 25, 2014 03:35

Neil Sardesai @@neilsardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.