Feeds

MtGox claims to have a fix ready for Bitcoin withdrawal woes

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

5 things you didn’t know about cloud backup

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ice cream headache as black hat hacks sack Dairy Queen
I scream, you scream, we all scream 'DATA BREACH'!
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
Researchers camouflage haxxor traps with fake application traffic
Honeypots sweetened to resemble actual workloads, complete with 'secure' logins
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
JLaw, Kate Upton exposed in celeb nude pics hack
100 women victimised as Apple iCloud accounts reportedly popped
New Snowden leak: How NSA shared 850-billion-plus metadata records
'Federated search' spaffed info all over Five Eyes chums
Three quarters of South Korea popped in online gaming raids
Records used to plunder game items, sold off to low lifes
Oz fed police in PDF redaction SNAFU
Give us your metadata, we'll publish your data
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.