BITCOIN prices plummeted as much as 22 per cent during trading yesterday after top Bitcoin exchange MtGox said a flaw with the crypto currency had led it to stop withdrawals last week over security concerns.
MtGox described the issue: “A bug in the Bitcoin software that makes it possible for someone to... alter transaction details to make it seem like a sending of Bitcoins... did not occur when in fact it did occur.”
MtGox said that it was working with the Bitcoin Foundation – the non profit group which maintains Bitcoin’s code – to find a solution to the problem. However, the Bitcoin Foundation in turn blamed the issue on MtGox.
“The issues... are due to an unfortunate interaction between MtGox’s implementation of their highly customised wallet software... and their unpreparedness for a technical detail that allows changes to the way transactions are identified,” the Bitcoin Foundation said in a statement.
Bitcoin prices recovered to a far less severe daily decline to be priced at around $665 last night.
“This is a good reminder that Bitcoin is still young and experimental,” added the Bitcoin Foundation.