Bitcoin plunges after withdrawal halt

2014-02-11 10:16
(Shutterstock)

(Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

New York - The price of the digital currency bitcoin slid to its lowest level in nearly two months on Monday after bitcoin digital marketplace Mt Gox said a halt on withdrawals it announced on Friday would continue indefinitely after it detected "unusual activity".

The bitcoin price varied dramatically from one exchange to another, with Tokyo-based Mt Gox, the best known operator of a bitcoin digital marketplace, recording one of the biggest drops for the day.

On the Mt Gox platform the currency plunged to as low as $500 early on Monday, down more than 27% from Friday's final price of $692, according to the Mt Gox website. It last traded at $597, off nearly 14% from Friday.

The price started falling fast on Friday when Mt Gox said it was temporarily halting withdrawals due to unexplained technical issues.

In an updated statement on Monday, Mt Gox said withdrawals were on hold indefinitely after it "has detected unusual activity on its bitcoin wallets and performed investigations during the past weeks. This confirmed the presence of transactions which need to be examined more closely."

Mt Gox said a "bug in the bitcoin software" could allow transaction details to be altered.

Transaction details

In effect, someone on the network could alter transaction details to make it appear a transfer of bitcoins from one digital wallet to another had not occurred when in fact it had. This might cause the transfer to be repeated.

A bitcoin wallet is an application that stores bitcoins for the currency's users.

Mt Gox said the issue was not limited to the exchange and "affects all transactions where bitcoins are being sent to a third party". It said the withdrawal suspension would be in effect until the issue has been resolved.

CoinDesk, which launched the CoinDesk Bitcoin Price Index in September, removed Mt Gox from its index on Monday, citing its "persistent failure to meet the index's standards for inclusion".

"These recent withdrawal restrictions are just the latest in a series of issues which have made Mt Gox's inclusion in the BPI problematic," CoinDesk said.

On CoinDesk's bitcoin index, the bitcoin price was lower but not by nearly as much as on the Mt Gox platform. The CoinDesk index showed bitcoin at $662.51 on Monday afternoon, only about 6% lower from Friday's close of $703.57. Its low for the day was around $540 versus $500 on Mt Gox.

On both platforms, the price was still around the lowest since late December. The price had topped $1 000 as recently as late January.
Read more on:    e-commerce
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
15 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Save up to 30% off top fragrances

Get mind blowing savings on selected fragrances. Offer valid while stocks last. Shop now!

Up to 40% off fashion accessories

Save up to 40% on selected handbags, purses, watches, jewellery and more. Offer valid while stocks last. Shop now!

Save up to R2000 on top electronics

Get every day mind bowing savings on top electronics. Offer valid while stocks last. Shop now!

Save up to 50% on Women’s month treats!

Celebrate the awesome women in your life with awesome treats like beauty products, fashion accessories, bestselling books, electronics and more. Offer valid while stocks last. Shop now!

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Today is a good day to combine imagination, information and creativity together. Try not to over rationalise things and rather...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.