Bitcoin Buzz | SCMP’s Bitcoin Morning Report: War of words with Mt Gox

Bitcoin core developers Jeff Garzik and Gavin Andresen have hit back at Mt Gox after they claimed to have found a flaw in the heart of the Bitcoin network. Garzik and Andresen said it was a cynical attempt to shift blame from the beleaguered Japanese exchange to developers and Bitcoin itself.

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Bitcoin core developer Gavin Andresen (inset). Photo: SCMP Picture

Published: 10:48am, 11 Feb 2014Updated: 12:28pm, 11 Feb 2014

Bitcoin core developers Jeff Garzik and Gavin Andresen have hit back at Mt Gox after they claimed to have found a flaw in the heart of the Bitcoin network. Garzik and Andresen said it was a cynical attempt to shift blame from the beleaguered Japanese exchange to developers and Bitcoin itself.

The allegation is that a known issue within the system can open exchanges up to fraud. Mt Gox claims they identified suspect trades which need more investigation. In the meantime, all Bitcoin withdrawals on the exchange are suspended indefinitely. Cash withdrawals are unaffected.

SCMP will have further comment and reaction to Mt Gox later today.

Price recovery

Bitcoin prices have recovered overnight after the shock revelations from Japan’s Mt Gox over the issues that dogged them last Friday. Equally, for fans and speculators of Bitcoin, those who held on during the turbulent trading day – and bought more for their money – will be richly rewarded. That includes the mystery buyer of a Bitcoin holding for just US$102.

Mt Gox price index axe