BREAKING: Withdrawals at MtGox will Resume

Gox's troubles have instilled very little confidence.
Gox's troubles have instilled very little confidence from the Bitcoin community.

MtGox has taken the first steps toward resuming normal operations today, as bitcoin withdrawals have slowly been resumed following last weeks "malleable transactions" public-relations fiasco. Early Saturday, MtGox announced scheduled maintenance with the intention of reinstating withdrawals. Following the maintenance was a 24 hour observation period to monitor MtGox's systems as a whole. It appears for now that this fix was successful. Additionally, we are anticipating MtGox to be subjected to a very large volume of withdrawals.

Today's Press Release by Mt Gox:

Tokyo, Japan, February 17th, 2014

Dear MtGox Customers,
We apologize for the inconvenience caused by the recent suspension of external bitcoin transfers. Fortunately, as we announced on Saturday we have now implemented a solution that should enable withdrawals and mitigate any issues caused by transaction malleability.

Thanks to our friends at Blockchain.info, MtGox now has a workaround that will use a unique identifier created by Blockchain to show whether transactions have been modified or not. This will prevent any fraudulent use of the malleability issue and protect the assets of our customers.

Resuming Withdrawals
With this new system in place, MtGox should be able to resume withdrawals soon. At the beginning we will do so at a moderated pace and with new daily/monthly limits in place to prevent any problems with the new system and to take into account current market conditions.

In order to launch the new system, we are going through the following steps:
- Re-indexing the entire Blockchain (approx. 32 million entries)
- Fully deploying the new NTX ID
- Implementing a new bitcoin withdrawal queue that needs to be tested

We will update everyone again by Thursday at the latest. Additionally, you may have noticed that we have added a new login system that sends you an email when you successfully access your account. This is an additional security layer, but as always we strongly encourage our customers to use the 2-step authorization options available in our Security Center.

Thank you again for your support, and we look forward to resume bitcoin withdrawals as quickly as possible.

Best regards,
MtGox Team

 

History

Despite the entire bitcoin ecosystem being effected by a denial-of-service attack exploiting a characteristic of the Bitcoin protocol,  MtGox received the brunt of consumer outrage after they suddenly halted bitcoin withdrawals and blamed a "bug in the bitcoin protocol."  Critics cited out of date and amateur programming in the exchange's system for its woes.

Will this return of "normalcy" restore MtGox to it's former seat in the Bitcoin community?  Only time will tell, but MtGox will definitely have to undertake significant improvements in order to be removed from our "banned services" list.

This article is protected by copyright laws and is owned by CCN Markets.

About the author

Jonas Borchgrevink
Jonas Borchgrevink

Founder of CCN.com and Hacked.com. Passionate about how technology can empower people to create a more just and sustainable world.