Mt. Gox Goes Offline in Wake of Massive Bitcoin Loss Gord McLeod February 25, 2014 News 5 Comments 113 Shares Google+ 85 Twitter 17 Facebook 10 LinkedIn 1 Reddit 0 Pin It Share 0 Buffer 0 113 Shares × A security breach at Mt. Gox, one of the primary bitcoin exchanges, has led the company to announce a halt on all transactions following massive losses – to the tune of 744,000 BTC, roughly $409,200,000. Because Mt. Gox isn’t a bank, it’s unfortunate, but those affected really don’t have any recourse. A bank would be insured, but those who have lost their accounts are just left with exactly that – a loss. The transaction closure was announced on the Mt. Gox site itself, and reads simply: Dear MtGox Customers, In light of recent news reports and the potential repercussions on MtGox’s operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly. Best regards, MtGox Team This is horrible news for those who had significant holdings in bitcoin, and a stark reminder that ANY type of financial exchange or institution requires extraordinary security. This is never more true than with new types of exchanges and currencies. It’s easy to fall into a trap of thinking that bitcoin isn’t real money, and doesn’t need the same level of security. It’s increasingly clear that that’s not the case. (Via Forbes) 113 Shares Google+ 85 Twitter 17 Facebook 10 LinkedIn 1 Reddit 0 Pin It Share 0 Buffer 0 113 Shares × Our email robots can be trusted. Please add your name and email to get posts like these sent to your inbox Trusted Our email robots can be trusted. Please add your name and email to get posts like these sent to your inbox Email Frequency: Weekly Updates Daily Updates 5 Responses barth February 25, 2014 I hope the Winklevii didn’t spend all their Facebook money on bitcoin by now. Mark 'Rizzn' Hopkins February 25, 2014 The problem wasn’t a result of poor security (which Gox did struggle with over the years). The problem was ineptitude in the coding team and piss-poor accounting. We covered this in detail last night in detail at SiliconANGLE. Catch up on the news here: http://siliconangle.com/blog/2014/02/25/mtgox-trading-freeze-and-website-closure-aftermath-continues/ http://siliconangle.com/blog/2014/02/24/coinbase-blockchain-info-and-other-high-profile-bitcoin-industry-executives-mtgox-is-insolvent/ Gord McLeod February 25, 2014 You’re absolutely correct, but these days, that is part of the security measures a service like Mt. Gox should have been implementing, and didn’t. Mike McDonald February 25, 2014 Bitcoin seems to be dying. From this latest theft to the huge rift between bitcoin users and the general public in terms of understanding and using bitcoin, not to mention the difficulty for the average new bitcoin user of securing their wallets, it’s all just too much. I don’t see how this ever works out in the long term. And I’m holding some bitcoin, so I say this knowing full well what I stand to lose if I’m right. Gord McLeod February 25, 2014 I think may be too early to say that it’s dying, but it has definitely hit some dark days, and it’s only going to get worse before it gets better.