As Ive observed, bitcoin cannot be replaced by another cryptocurrency. Nowadays, bitcoin has become growing daily, increasing its price and demand. It cannot be replace because many are using btc already and attracted to bitcoin.

Wrong, bitcoin is not centralised but it's opposite of that. Bitcoin us decentralised which means no other 3rd party can alter the bitcoin network and government could also can't impose tax on bitcoin. All I know is bitcoin is automated and no one can change the system.

DALLAS — (Mealey’s) The federal bankruptcy judge presiding over the Chapter 11 case of bitcoin exchange operator MtGox Co. Ltd. today ordered the company’s CEO to fly to the United States from Japan to be deposed, a source told the LexisNexis Bankruptcy Report (In Re:  MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).

Bankruptcy

MtGox Co. Ltd. filed for Chapter 15 bankruptcy on March 9- Before its petition, Mark Karpeles, the CEO of MtGox Co. Ltd., filed an application to commence civil rehabilitation proceedings in the Tokyo District Court- Civil rehabilitation is the Japanese equivalent of filing for bankruptcy in the United States.

MtGox Co. Ltd. is the parent company for MtGox Inc., MtGox KK and Tibanne KK, all of which entered bankruptcy at the same time.

The same day MtGox Co. Ltd. filed for civil rehabilitation, a group of investors filed a putative class action against MtGox Inc. in the U.S. District Court for the Northern District of Illinois, alleging fraud, breach of contract and other causes of action related to the loss of 744,000 bitcoins, which the investors contended were valued at $409.2 million (Gregory Greene, et al. v. MtGox Inc., No. 14-01437, N.D. Ill.).

On March 25, the investors moved in the U.S. Bankruptcy Court for the Northern District of Texas to compel Karpeles to provide deposition testimony and offered to pay his travel expenses from Japan to the United States.

Travel

Despite the offer, the investors contend that Karpeles persisted in his refusal to travel to the United States “based solely on the inconvenience of the time it takes for a flight to the United States and an amorphous need to focus on the Japan proceeding.”

Bankruptcy Judge Stacey G. Jernigan issued a verbal order from the bench, a source said, which compels Karpeles to come to the United States and give deposition testimony.

The class is represented by Christopher L. Dore, Jay Edelson, David I. Mindell and Alicia Hwang of Edelson in Chicago and Segeven L. Woodrow and Megan Lindsey of Edelson in Denver- The MtGox entities are represented by Junko Suetomi and Yamamoto Hideyuki of Baker & McKenzie, Akio Shinomiya and Kazumasa Kawai of Yodoyabashi & Yamagami Legal Professional Corp. and Nobuaki Kobayashi of Nagashima Ohno & Tsunematsu, all in Tokyo- Karpeles is represented by David W. Parham and John Mitchell of Baker & McKenzie in Dallas.

IDG News Service (Tokyo Bureau) — Fewer than 400 bitcoins could have been stolen from the Mt. Gox Bitcoin exchange using so-called transaction malleability attacks, according to A Swiss study, far less than the hundreds of thousands of bitcoins the company reported.

The findings cast doubt on the failed exchange's explanation of how it lost nearly half a billion dollars' worth of the digital currency when it applied for bankruptcy protection in Tokyo on Feb. 28.

The study was written by Christian Decker and Roger Wattenhofer of the Distributed Computing Group at the Swiss Federal Institute of Technology Zurich (ETH). It was uploaded to the academic prepress site ArXiv.org and has not been published by a peer-reviewed journal.

"In February 2014 MtGox, once the largest Bitcoin exchange, closed and filed for bankruptcy claiming that attackers used malleability attacks to drain its accounts," the authors, who have authored several papers on Bitcoin and distributed systems, write.

"In this work we use traces of the Bitcoin network for over a year preceding the filing to show that, while the problem is real, there was no widespread use of malleability attacks before the closure of MtGox."

The study looks into the plausibility of the claim that transaction malleability brought down Mt. Gox. The Tokyo-based exchange had said that a bug in the Bitcoin software could be used to fraudulently alter the records of how bitcoins change hands.

When Mt. Gox collapsed with liabilities of AY=6.5 billion (US$63.6 million), it said that it had lost about 850,000 bitcoins, which would have been worth some $474 million. It cited exploitation of a bug in the Bitcoin system, saying it believed "that there is a high probability that these bitcoins were stolen as a result of an abuse of this bug."

Before trading stopped at the exchange on Feb. 25, Mt. Gox had blamed the transaction malleability issue when it suspended withdrawals of bitcoin to outside addresses.

In their study, the ETH researchers describe how they created specialized nodes that could trace, from January 2013, all transactions on the Bitcoin network including double-spending attacks, of which malleability attacks are described as a variant.

They found that only 302,700 bitcoins were involved in malleability attacks.

"Of these, only 1,811 bitcoins were in attacks before MtGox stopped users from withdrawing bitcoins," they wrote. "Even more, 78.64 percent of these attacks were ineffective. As such, barely 386 bitcoins could have been stolen using malleability attacks from MtGox or from other businesses. Even if all of these attacks were targeted against MtGox, MtGox needs to explain the whereabouts of 849,600 bitcoins."

Mt. Gox CEO Mark Karpeles did not respond to an email seeking comment on the study.

In an email, Wattenhoffer said the study has not been submitted to a peer-reviewed journal, adding "We will do this eventually, but reviewing takes time, and in this case we felt that some people might be eager to hear the news before the usual several-months peer-review cycle is over."

While observers on the Bitcointalk.org forum welcomed the study, they also cautioned that it only went back as far as January 2013.

"It's possible Gox was hit much harder in previous years," one commentator wrote. "Although that would also mean the amount of time they spent oblivious to the problem increases."

Software developer Mike Hearn, who works on bitcoin-related projects, welcomed the study's findings. "People were raising the alarm about this claim almost as soon as it was made by Mt Gox. Although in theory their explanation could have worked (if we assume really bad decisions on their part like not investigating failed withdrawals and just repeating them), the vast sums of money being talked about stretched credulity. And nobody else had reported observing lots of mutated transactions. Now we have data to prove this was correct," he said via email.

I've no idea and I wouldn't give a flying fuck about the short term price if it means thousands upon thousands of people are saved from Bitcoin ruin.

Frozen Funds

In preparation of the following, we have with immediate effect stopped the possibilities to withdraw BTC, LTC, FTC and TRC. All incoming deposits will also not be credited to the users accounts for the time being.

On 24th March 2014 we will be freezing the current BTC, LTC, TRC and FTC accounts, then perform the below distribution of the available coins and reenable deposits and withdrawals. This action will also require us to delete all open sell orders for BTC, LTC, FTC and TRC.

As you may very well be aware, we had two incidents last year that lead to a loss of a significant number of BTC, LTC, FTC, TRC. We had communicated at that time that we will be covering those losses from our income, which we have done so far. We had enough coin balances in our cold wallet to upkeep our platform and the positive cashflow enabled us to gradually refill the wallets.

Unfortunately we had large fund withdrawals in the last weeks which have lead to a complete depletion of our cold wallet balance and we are now facing the option of either closing the site with significant unrecoverable losses for all or to work out a solution that allows the exchange to continue to operate and gradually pay back the losses.

We have obviously chosen the later and hence are going to do the following:

    1. We will introduce an additional balance type called "Frozen Funds". Funds in this balance type cannot be used to trade or withdraw. Those are the balances that the exchange will gradually pay back and hence transfer back to the available balance over time.
    2. We will move all current balances for BTC, LTC, TRC and FTC to the "Frozen Balance", i.e. your balance will be set to 0.
    3. We'll take the current available cold storage balance and distribute it based on the below described distribution logic.
    4. Monthly we will take the net profit of the exhchange and credit back that amount distributed to the users based on the described distribution logic.

I think it's a myth that ex Gox customers, should scramble to Bitstamp after the bankruptcy.

If they had any there they have less now, and before, they considered Gox the safest option.

If they managed to withdraw in time, they don't intent to have their coins on another exchange.

Volumes are falling on all the exchanges, Ask orders are dwindling too. We will see another sharp dip into in a few days. This time into the sub 300.

The implications of Gox has a lot to do with the future of bitcoin still. more has to come out i the open before it's impact can be assessed.