Feeds

MtGox claims to have a fix ready for Bitcoin withdrawal woes

Customers to get access to their funds real soon now, like

High performance access to file storage

Bitcoin exchange MtGox says its customers should soon be able to withdraw Bitcoins from their accounts again, although the company is still not sure just how long the process of restoring access will take.

MtGox suspended withdrawals last Monday after claiming it was hampered by a security flaw related to "transaction malleability," a known property of the Bitcoin protocol that critics say MtGox should have addressed years ago.

Over the weekend, MtGox said it was working with Bitcoin wallet provider Blockchain.info to come up with a temporary fix for the malleability issue until a longer-term solution could be found.

"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," the company wrote on Monday [PDF]. "This will prevent any fraudulent use of the malleability issue and protect the assets of our customers."

But MtGox says the fix still can't be put in place right away. The new code must first be deployed, the Bitcoin blockchain must be reindexed, and MtGox has to implement a new withdrawal queue that it says still needs to be tested.

The company also says it won't reinstate withdrawals all at once – suggesting perhaps that MtGox is trying to avoid a run on its accounts once frustrated customers have access to their funds restored.

"At the beginning we will [resume withdrawals] 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," MtGox said in its statement today.

Meanwhile, other Bitcoin exchanges have similarly been scrambling to shore up their systems, after the publicity of the MtGox affair led to a string of fraudulent transaction attempts and denial-of-service attacks across the Bitcoin community.

MtGox has not said how long the re-implementation and testing of its new withdrawal queue will take, but it has promised to issue an update on its progress no later than Thursday. ®

High performance access to file storage

More from The Register

next story
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
Heartbleed exploit, inoculation, both released
File under 'this is going to hurt you more than it hurts me'
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Experian subsidiary faces MEGA-PROBE for 'selling consumer data to fraudster'
US attorneys general roll up sleeves, snap on gloves
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.