MtGox reports bug in system.

[chessnut]

"Bitcoin transactions are subject to a design issue that has been largely ignored, while known to at least a part of the Bitcoin core developers and mentioned on the BitcoinTalk forums. This defect, known as "transaction malleability" makes it possible for a third party to alter the hash of any freshly issued transaction without invalidating the signature, hence resulting in a similar transaction under a different hash. Of course only one of the two transactions can be validated. However, if the party who altered the transaction is fast enough, for example with a direct connection to different mining pools, or has even a small amount of mining power, it can easily cause the transaction hash alteration to be committed to the blockchain."

excuses, excuses, excuses....

lets discuss what going on here.

is this new? is this valid? is this a good excuse?

will this scare investors?

[1715031991]

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[1715031991]

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[1715031991]

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[raid_n]

I think many might misunderstand this as compromising the security of transactions which is not happening.
The question is how many realize this may be a good buying opportunity if panic spreads.

look here:

https://en.bitcoin.it/wiki/Transaction_Malleability

[chessnut]

I think many might misunderstand this as compromising the security of transactions which is not happening.
The question is how many realize this may be a good buying opportunity if panic spreads.

Ive heard that this problem is nothing new. It seems like the news serves two purposes, to reject responsibility of peoples coins, and it has been engineered to cause the latest crash.

this will be an important capitulation for many large players.

So sad that the currency is so young and the news is already terribly manipulated.

[keewee]

Probably worth reposting this here too. Apparently this was from Jeff Garzik from a few days ago: http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_chatter_about_what_is_going_on_at_mtgox/cf99yac

[knightcoin]

and I am here got hard time thinking about kind of time stamper to order precedence ruler .. at low transistor level

[WompRat]

Is this the official excuse?  Utter bullshit.   Gox doesn't have sufficient bitcoins to cover their clients accounts.  The Japanese authorities need to shut down this operation immediately and call in some trusted liquidators.  The longer this is allowed to go on the worse it is going to be for everyone.

[efarah2549]

This sounds like complete bullshit and it is like scaring off investors is exactly what they are trying to do.

In the meantime, exchanges and wallet services - and any service sending coins directly to third parties - should be extremely careful with anyone claiming their transaction did not go through.

Note that this will also affect any other crypto-currency using the same transaction scheme as Bitcoin.

I can't believe mt.gox would make such a wild claim as saying fundamentally all crypto-currencies are bugged.  Saying exchanges shouldn't be trusted is really ironic here as well, meanwhile they continue to have nothing to back up their claim.

I'm a bag holder from much higher prices and all this resent bullshit from gox just isn't fair, everyone in this market is completely full of shit

[chessnut]

This fall has been due, if this really is it, so far the volume is very small. we will see a lot more volume tonight, where will it take us, 550? 500? 380?

[efarah2549]

It's already past $550, we've dropped over $100 in 15 minutes

[knightcoin]

About time my first music here ...

http://www.youtube.com/watch?v=LWTLUmUjo8A

[chessnut]

About time my first music here ...

http://www.youtube.com/watch?v=LWTLUmUjo8A

http://www.youtube.com/watch?v=cpbbuaIA3Ds

since we are talking pink floyd....

[oda.krell]

You got to love Mark Karpeles.

Here's a man who doesn't mind taking the entire world (well: btc world) with him on the way down, as long as it buys him an extra day or two of breathing room.

Sometimes I think E.Mucus is right: bitcoiners are among the most psychopathic creatures on earth.

(I don't really agree. But we have our fair share of psychos, i'll say that much.)

[WompRat]

This is a calculated move from Gox to try to drop the price of bitcoin and allow them to buy back to cover their bitcoin obligations.  I strongly believe that they are trading whilst insolvent.  The sad thing is this might actually work - Assholes. 

[knightcoin]

Yep thinking about time ( and Floyd inspirations lol )

about time, matching order system, cleaning house ... you know all those stuff ...

just reading more about

http://en.wikipedia.org/wiki/Order_(exchange)

and to be honest in my own research about ...

http://stackoverflow.com/questions/6559308/how-does-lmaxs-disruptor-pattern-work

compared to thread management, deadlock, bla bla  etc ...

[SheepOnDrugs]

F*ck the, huge price drop. -_-

[chessnut]

F*ck the, huge price drop. -_-

lol, I had orders to go at 350, i thought, better remove then incase they get filled during disaster. bounces back to 580.... doh!

[oda.krell]

and done. +60 btc as a result of karpeles asshattery. not sure if I should hate or love the guy :/

[P_Shep]

So those selling on MtGox... how do then intend to get their fiat out?

[SheepOnDrugs]

and done. +60 btc as a result of karpeles asshattery. not sure if I should hate or love the guy :/

You should love those guys.
Right now it's so easy to make lots of money within seconds.

[porcupine87]

So what does this flaw mean? Are transactions in Bitcoin not secure anymore?

So those selling on MtGox... how do then intend to get their fiat out?

They can rather sue MtGox for their Fiat, but not their btc.